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Please note: The Frank Talk articles listed below contain historical material. The data provided was current at the time of publication. For current information regarding any of the funds mentioned in these presentations, please visit the appropriate fund performance page.

Albania’s Fertile Grounds for Oil Opportunities
May 5, 2014

Texas is oil country. The state I now call home leads the nation in oil production and would be one of the top oil-producing nations if it were its own country. But that doesn’t stop us from exploring other promising oil opportunities further afield. I recently traveled to Albania to check out a drill site of Petromanas Energy, a Calgary-based international oil and gas company focused on exploration and production throughout Europe and Australia. We own the junior stock in our Global Resources Fund (PSPFX) and Emerging Europe Fund (EUROX).

To many, Albania is an unknown country yet it has a rich and interesting history. It declared independence from the Ottoman Empire in 1912, was conquered by Italy in 1939 and occupied by Germany in 1943. Albania allied itself with the USSR until 1960 and then with China until 1978.  Democratic development has progressed since the country’s first multiparty elections in 1991. The 2009 general elections resulted in the country’s first coalition government and the 2013 election saw a peaceful transition of power. A parliamentary democracy, the country has steadily been welcoming foreign direct investment (FDI) since it shifted away from communism in the early 90s. The recent FDI into the country comes on the back of the extensive development of its rich petroleum resources.

Third Time’s a Charm
This was my third trip to Albania. I last visited the country in 2004 when we were seed investors in another oil play there, Bankers Petroleum. Today Bankers’ Albanian discovery is the largest onshore oilfield in all of Europe. The company is now close to 40 percent of Albania’s FDI and is reinvesting all cash flow back into the country, about $300 million per year. Bankers has done an amazing job cleaning up the environmental disaster left behind by previous operators of the assets which Bankers is developing. Today the fields are green and sheep roam freely. Old and dirty early rigs have been replaced with new safer, cleaner technology.

So much has changed since my last visit.  The country is more prosperous and more verdant. Capital city Tirana’s infrastructure and roads have improved by a quantum leap in the past 10 years. Every morning I ran in Rinia Park, the large central public park, with Marin Katusa of Casey Research. We were impressed with the hundreds of locals jogging at 7 a.m.

Meeting A Man of Many Colors

On this visit I was honored to meet the Prime Minister of the country since 2013, Edi Rama, who also served as the mayor of Tirana from 2000 to 2011. He is a fascinating leader. Rama is a native of Tirana and, in addition to becoming involved with the first democratic movements in Albania, he is an artist and a former basketball player for the Albanian national team. He is, to a large degree, responsible for the vibrancy I saw in Tirana, his Clean and Green project resulting in nearly 100,000 square meters of green land and parks, and his creative efforts to use art and color helping to curb corruption and revive civic pride and responsibility. You’d enjoy watching him explain this dramatic transformation in his TED talk Take Back Your City with Paint. Rama has helped form a stable political environment in Albania, just one reason Petromanas Energy has invested in drill sites here.

Fertile Ground for Oil and Gas
The company’s assets in Albania cover more than 1.1 million gross acres.  In the company’s presentation during our visit, management explained why Albania’s landscape is also key. Petromanas is exploring for large, deep, fractured carbonate structures of Eocene-Cretaceous age, similar to those in southern Italy which are the sites of several prolific oil fields.

Greek 10-Year Government Bond Yields Back to Pre-Crisis Levels
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Located across the country’s Berati thrust belt, you can see the multiple wells in the map below: Papri, Shirag and Molisht. Petromanas is looking for a light oil deposit in these wells. Super major Royal Dutch Shell has invested $200 million to partner in these plays.

While at Petromanas properties, our group saw a few of these wells, but most notable was the visit to the Molisht-1 well that is currently being drilled. As Keith Schaefer points out in his recent Oil and Gas Investments Bulletin on the Albania trip, the Molisht-1 well has the potential to be an 8,000-10,000 barrels of oil production per day well, an absolute company maker. And according to Petromanas’ presentation, the Molisht-1 well could potentially hit earlier than expected, which would be a positive surprise for the company.

What do the founder of Lionsgate Entertainment and a former NATO Commander have in common?


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Petromanas Energy is an example of a company that is currently in a strong area of the market and exhibits robust fundamentals. Its management, research and location are only a few reasons I see great potential for this organization. Escorting us on the research trip were two of the company’s directors, my good friend the legendary Canadian venture capitalist and philanthropist extraordinaire Frank Giustra, and General Wesley Clark, who as the former Supreme Allied Commander Europe, led the charge to stop Serbian forces from committing genocide in Kosovo. I’ve also had the privilege of working alongside these distinguished gentlemen with the International Crisis Group, a non-profit, non-governmental organization committed to preventing and resolving deadly conflict around the world.

The Path from War to Peace and Prosperity in 20 Years

Albanians and their Balkan neighbors have seen more than their share of conflict. The trigger for World War I was the assassination in Sarajevo of Archduke Ferdinand, heir to the throne of Austria-Hungary, by a Yugoslav nationalist in 1914. The Yugoslav Wars fought from 1991 to 1999 on the territory of former Yugoslavia have been described as Europe’s deadliest conflict since World War II and the first since the Great War to be formally judged genocidal. It is estimated at least 130,000 lost their lives.  In the last of these ethnic conflicts, the Kosovo War, a million ethnic Albanians fled or were forcefully driven from Kosovo by Yugoslav troops. Under the command of General Clark, NATO forces bombed Serbian forces to prevent the continued displacement and persecution of the Albanian people.

Prime Minister Rama told us that he is profoundly grateful to the American people, President Clinton, and NATO for saving the lives of at least 900,000 Albanians and ushering in stability and positioning the region for progress. It was a case study in the successful use of force to bring peace to a region and a consequent drive for prosperity for its people. Our collective investment in this humanitarian success story is paying dividends for a new generation of Albanians. The country’s transition to a free market economy has been difficult and there are many economic challenges on the road ahead but the government believes in creating a path favorable for business. Companies such as Bankers Petroleum and Petromanas are helping Albania to develop its natural resources, improve its economy and create growth opportunities for investors who see the potential of this resilient country.

Greek 10-Year Government Bond Yields Back to Pre-Crisis Levels

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

Past performance does not guarantee future results.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.

By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio. The Emerging Europe Fund invests more than 25% of its investments in companies principally engaged in the oil & gas or banking industries.  The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Global Resources Fund as a percentage of net assets as of 3/31/14: Bankers Petroleum 0.00%, Petromanas Energy 0.05%, Royal Dutch Shell 0.00%. Holdings in the Emerging Europe Fund as a percentage of net assets as of 3/31/14: Bankers Petroleum 0.00%, Petromanas Energy 0.18%, Royal Dutch Shell 0.00%.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

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We’re Shuffling the Cards on Our European Play
April 14, 2014

Did you know that over the last year the Greek stock market is up roughly 45 percent? The country that many believed would never recover from a six-year recession is now making astounding strides, recently being added to the MSCI Emerging Markets Index at the end of 2013.

As I’ve witnessed new strength from this “comeback country,” along with a rise in foreign investment into emerging markets as a whole, our investment team is currently strategizing to adapt our game to new European plays. Here are the game changers we see:

We're looking to play our cards right to capture opportunity in the European recovery.Greece Wants Back in the Game
Last week, Greece returned to the international markets with a five-year bond sale, quickly topping $4 billion according to Bloomberg. The yield on these bonds is a little under 5 percent, an attractive number in comparison to other countries’ currency bonds. Greece has been shut out of the bond market for roughly four years now, but I believe the country’s reentry last week is an imminent sign of recovery. 

In the Investor Alert on March 28, we highlighted another indicator of Greece’s recovery. The Greek 10-year bond yields are back down to 2010 levels and the country’s economy is expected to grow by 1.1 percent this year. These conditions have boosted consumer confidence and allowed Greek banks to recapitalize, changing the lending landscape in a credit-starved nation.

Greek 10-Year Government Bond Yields Back to Pre-Crisis Levels
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A recent Reuters’ article discussed the Greek bond sale stating that, “It would not only raise confidence in Greece’s ability to fund itself and aid its recovery, but it also offers Europe the chance to claim its widely-criticized crisis medicine of tough cuts and austerity was necessary, and ultimately successful.”

In fact, last October our Director of Research John Derrick expressed his confidence in the country during a time when most investors wouldn’t offer Greece a second look. He said the country’s current account situation could move from a deficit to a surplus in 2014. As it stands now, several strong economic signs are pointing to John’s positivity on the country, including the fact that Greece hit a surplus before 2014 even began, as you can see in the chart below.

Greece Posts Current Account Surplus in 2013
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One way we are playing these powerful signs within our Emerging Europe Fund (EUROX), is through Greek banks such as Alpha and Piraeus. These banks recently recapitalized, and with the Greek banking industry now consolidated to only four major banks, these names are poised to benefit from the economic recovery.

The Cards Are Stacked Against the Russian Investment Case
I have always believed that government policies are a precursor to change, and witnessing the drama with Putin in the Russian corner of the globe, I think now is a perfect time to shuffle our investment deck and underweight our portfolio to the country. We noticed economic growth in Russia beginning to slow in 2013, with few identifiable, positive catalysts, but the recent geopolitical tension with Ukraine was the final indication of an undesirable shift.

Since the breakout of conflict between Russia and Ukraine, investor confidence has dwindled in the area, and as you can see in the chart below, the two countries directly involved in the clash are the ones showing the highest market-risk impact.

Dramatic Increase in Market Risk in Ukraine
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Towards the end of 2013 I wrote that European equities had seen the longest streak of inflows in over 11 years, as investors began noticing this area of the globe as a spectacular investment opportunity. In addition to many strong areas in developed and emerging Europe, several of these equities were in Russia, and continue to be in Russia. Despite the disorder and our decreased exposure to Russia, we still see resilient stocks with growth opportunities. Two examples of strong Russian names include Norilsk Nickel, a nickel and palladium mining company, along with an Internet company, Mail.Ru.

When it comes to actively managing a portfolio, it’s all about playing your cards right, and at U.S. Global Investors we seek to manage risk while pursuing opportunity for our shareholders.

Turkey’s Turnaround
Greece isn’t the only country returning to the Eurobond market. Last Wednesday, Turkey sold 1 billion euros of nine-year bonds for the first time this year. The bonds, which will mature in 2023, should help the country with financing needs for the remainder of 2014.

Investors showed particular interest in Turkey’s bond issue, but have also started looking to the country as a prime tourist destination. Istanbul, the largest city in Turkey, recently jumped 11 spots to take this year’s No. 1 position on TripAdvisor’s Traveler’s Choice list of global destinations, according to CNN.

Passenger growth in Turkish airports is taking off, seeing year-over-year growth of 15 percent in both international and domestic passengers. Additionally, Turkish Airlines flies to more countries around the world than any other airline! No wonder people love to visit this country. One way we capture this strength for our European fund is through a Turkish airport operator, TAV Airports.

Join me for an investment adventure in Turkey, May 4-17, 2014In fact, I too will be participating in this outstanding growth when I travel to Turkey next month. U.S. Global is inviting all curious investors to take part in this exciting trip as well! I encourage you to read about the opportunities we will be exploring in Turkey straight from the experts.

So inspite of Turkey’s underperformance last year, the country is up 10 percent year-to-date, and over the past decade Turkey’s economy has more than tripled. Consumer confidence is back on track and the long-term, secular growth story remains intact.

Follow the Money
I believe the European recovery is a story worth telling, and within our Emerging Europe Fund (EUROX) we use our investment model to lead us not only to the strong and stable countries in this emerging market, but also to the strong sectors within each country. As Western Europe continues to recover, we believe companies with robust fundamentals in emerging Europe provide leverage to this growth. Explore this opportunity to invest in companies we believe are playing their cards right.

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Emerging Europe Fund as a percentage of net assets as of 03/31/14: Alpha Bank AE 1.98%, Mail.Ru 0.00%, Norilsk Nickel 0.00%, Piraeus Bank SA 2.34%, TAV Havalimanlari Holdings Inc. 0.75%.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio. The Emerging Europe Fund invests more than 25% of its investments in companies principally engaged in the oil & gas or banking industries.  The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

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Follow the Money to Asia’s Tech Hub
March 17, 2014

China’s slower economic data points and a surplus in copper and iron ore drove many commodities lower this week, while gold rose. In the short term, until the copper and iron ore surplus is liquidated, or absorbed at a slower pace, the base metals market will likely be sloppy.

As the second-largest economy in the world and a huge driver of commodities demand, it’s not surprising China provoked such a significant response from world markets. Interestingly, most of the media thought it was geopolitical fears from Ukraine that chopped up the market and lifted gold.

Over the past few decades, we’ve watched the country experience tremendous economic growth, with its share of world GDP growth going from only 1.4 percent in 1992 to nearly 20 percent two decades later. China has become quite an economic powerhouse, with a tremendous effect on domestic urbanization and wealth, changing consumption patterns dramatically.

So even if the country experiences short-term headwinds, we believe the long-term story remains slower, but stable. The important part is to look past the negative headlines to uncover the best opportunities, or as we like to say, “Follow the money!”

At U.S. Global, we strive to follow the money by analyzing the broader Asian market, focusing on the areas that are sustaining leadership, both by sector and by country.

For instance, did you know that the strongest-performing sector in Asia over the past year is technology? Take a look at the chart below showing that technology stocks in the MSCI Asia Index (excluding Japan) increased 14.2 percent over the past 12 months. The sector far outperformed energy, which declined the most in the same time frame.

Technology is Best Performing Sector in Asia
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In the Investor Alert, we’ve often discussed how the tech industry has been gaining strength in Asia, but particularly in China, which is quickly becoming the largest e-commerce market.

The world has drastically changed since the last technology boom more than a decade ago. As China has become one of the best consumption stories out there, local technology companies have profited. Take a look at other discussions we’ve had on China’s booming sector:

You can see below that Chinese technology companies have far outpaced other major Asian technology sectors. Over the past year, China’s tech stocks grew 77 percent. In Taiwan, tech businesses rose 15.3 percent while Korean tech stocks decreased 11.6 percent.

China is Best Performer Among Major Asian Technology Sectors
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So what about China makes it a technology hub?
Similar to what’s happening in the U.S., mobile Internet is transforming consumer behavior in China, with further penetration of smart phones, proliferation of mobile-payment apps, and 4G networks rolling out in China. These technologies aid in the ease and pleasure of shopping from home and staying connected, facilitating the rapid adoption of mobile e-commerce in the country.

In fact, as of the third quarter of last year, mobile e-commerce transactions already comprised 9.5 percent of total e-commerce volume, up from just 0.7 percent in the first quarter of 2011. 

Rapid Adoption of Mobile E-commerce in China to Benefit Mobile Internet Leaders
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With this significant growth, what I think is really important in China these days is the entrepreneurial spirit taking place. You have these young entrepreneurs growing up in China, creating new companies and achieving incredible success. In fact, according to the Chinese government, the startup of new companies in the private sector increased 30 percent in 2013, reaching 233 million businesses!

The entrepreneurs have government support too. In the widely watched annual press conference following the end of the National People’s Congress Conference, Premier Li Keqiang highlighted the government’s focus on innovation as a key driver for growth. In his signature no-nonsense and candid manner, the premier restated the importance of modernization and advancement.

As I wrote recently in my blog, innovation is one way companies grow and thrive in today’s highly connected and competitive world.

This innovation can be seen in the government’s recent selection of technology companies, Tencent and Alibaba, to open private banks. Currently, almost all banks in the country are state owned. This is yet another positive for tech companies, who have already collected deposits from many smart-phone users, who are able to achieve better rates than normal banks can offer.


Indonesia is Top-Performing Country in Asia
When it comes to country leadership in Asia, Indonesia is topping the performance charts. Among Asian countries, Indonesia has been the best performing country over the past six months, increasing about 8 percent as of March 14.

What is particularly impressive is that, despite investors’ worries about the country’s current account deficit and weak currency last year, businesses found Indonesia an attractive place to expand operations and do business.

Aggregate foreign direct investment has been strengthening across Southeast Asia, rising 7 percent in 2013 to $128.4 billion. Foreign investment was a particularly bright spot in Indonesia, as it grew 17 percent, according to Bank of America Merrill Lynch. What’s more, investment into Indonesia has been growing at a consistent pace over the past five years.

Rapid Adoption of Mobile E-commerce in China to Benefit Mobile Internet Leaders
click to enlarge

This is a very encouraging sign, as there is great historical parallel, says Xian Liang, portfolio manager of the China Region Fund (USCOX). He says that in the 1980s and 1990s, foreign direct investment kept flowing into China, which helped the economy grow. 

Just today, the country was upgraded to market weight by Goldman Sachs, which cited various reasons investors could see a pick-up in the investment cycle within the country.

We see additional positives for Indonesia, including the following:

  • The country’s current account deficit in the fourth quarter improved significantly. Indonesia managed to produce a trade surplus of $50 million compared to economists’ expectation of a $775 million deficit.
  • Indonesia inflation stabilized as November CPI was 8.37 percent versus the consensus of 8.45 percent.
  • The country is getting ready for its presidential election on July 9, which could be positive for stocks. According to Goldman Sachs, “elections have historically been an important domestic catalyst” for Indonesia. In addition, depending on the outcome of the vote, pro-growth policies “could help boost investment activity and provide impetus to the overall growth cycle,” says Goldman.
  • Secular drivers remain intact for Indonesia. Younger demographics, lower labor costs, robust domestic demand, and rising geopolitical competition among superpowers should help sustain favorable investment cycles in Southeast Asia, especially in faster growing countries such as Indonesia.

This is only a glance at some of the strengths in Asia where the China Region Fund is focused. With its ability to dynamically adapt and move to these areas, the fund can overweight these areas of relative strength while trying to avoid areas that have been under pressure. See how the fund has outperformed its benchmark over the one-month and one-year time frame by downloading the fact sheet here.

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

Past performance does not guarantee future results.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio.

The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals.  The weights of components are based on consumer spending patterns. The MSCI Asia ex-Japan Index is a free float-adjusted, capitalization-weighted index measuring the performance of all stock markets of China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand, India and Pakistan.

Holdings in the China Region Fund (USCOX) as a percentage of net assets as of 12/31/13:  Alibaba 0.00%, Tencent Holdings Ltd. 4.03%.

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This Might be Your Investment Adventure of a Lifetime
March 12, 2014

Did you know that over the past decade, Turkey’s economy has more than tripled? The country is a powerhouse in Europe: It is the largest commercial vehicle producer and the second largest steel manufacturer, according to the Republic of Turkey Prime Ministry.

While Turkey has been struggling lately, as the taper storm hammers the emerging European nation, we believe the latest correction could yield even more upside for investors.

When I visited the country this time last year, I was happy to see that the tacit knowledge learned on Turkish soil supported the explicit knowledge of this emerging country’s growth.

Turkey has a rich, diverse culture that is a blend of Asian, European and Middle Eastern traditions. Istanbul has been transformed into a country of affluence and among the beautiful Ottoman mosques, Byzantine churches, palaces and bazaars are ultra-contemporary art sculptures, shopping malls and lush landscaping.

As investment managers, we put a tremendous value on tacit knowledge because it strengthens our explicit knowledge. As St. Augustine once said, “The world is a book and those who do not travel only read one page.”

Now you have a unique opportunity to gain tacit knowledge by joining me on an investment adventure to this majestic country through Opportunity Travel.

Over 10 days in May, you can explore Europe’s fastest growing economy and learn all about the opportunities Turkey has to offer straight from the experts. See first-hand the breathtaking architecture and experience the rich, diverse culture.

Here’s a glance at the journey you can undertake:

Day Date Features Overnight
1 Mon, May 5 Arrival in Istanbul. Transfer to the hotel. Welcome reception and dinner at the hotel Istanbul
2 Tue, May 6 Full day tour including Bosphorus Bridge, Asian Side, Camlica Hill, Beylerbeyi Palace, back to Old Town, Hippodrome Square, Blue Mosque, St. Sophia Museum and Underground Cistern Istanbul
3 Wed, May 7 Half day meeting at the hotel with lunch. Afternoon visit Topakapi Palace, Grand Bazaar Istanbul
4 Thu, May 8 Half day meeting at the hotel with lunch. Afternoon visit Spice Market and cruise along the Bosphorus. Istanbul
5 Fri, May 9 Visit to a local company in Istanbul Istanbul
6 Sat, May 10 Transfer for the airport for morning flight to Kayseri. Afternoon visit the Underground City of Kaymakli and wine sampling experience Cappadocia
7 Sun, May 11 Visit Goreme Open Air Museum, Natural Citadel of Uchisar, Avanos (pottery making), Zelve, Red Valley, Pigeon and Babacik Valleys. After the dinner, visit "Whirling Dervishes" Ceremony of "Sema" Cappadocia
8 Mon, May 12 Before breakfast, optional "Hot Air Ballooning" excursion. After breakfast, drive to Ankara, visit the Mausoleum of Ataturk and The Museum of Anatolian Civilizations. Transfer to airport for flight to Izmir and to Kusadasi Kusadasi
9 Tue, May 13 Tour of the ancient city of Ephesus, The House of Virgin Marry, the Basilica of St. John, the Museum at Selcuk and Sirince Village Kusadasi
10 Wed, May 14 Visit a Gold Mine. Kusadasi
11 Thu, May 15 Drive Kusadasi / Bodrum. Visit Bodrum Castle, The Underwater Archeology Museum, Mausoleum of Halicarnassus.  Bodrum
12 Fri, May 16 Today we will enjoy a full day cruising by "Gullet" Bodrum
13 Sat, May 17 Transfer to Airport for flight back home or extend your stay to explore more on your own. Departure

If you prefer, there is a shorter version of the trip that takes you to Istanbul only on May 5 through May 10.

Join me on what could be the investment adventure of a lifetime. Space is very limited so you need to act now to claim your seat.

Click here to learn more and reserve your spot now or email our team at editor@usfunds.com.

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Going for the Gold
February 24, 2014

Everyone wants the gold. Around the world, athletes train for years to compete for a gold medal. In Hong Kong and China, the Love Trade seeks gold coins, bars and jewelry.

We found out this week the extent that gold is sought in the East. For the first time since 1980, Switzerland released monthly gold trade data, providing a more transparent picture of physical gold flows.

In January alone, the Swiss report showed an incredible 80 percent of gold shipments went to Asia.

Switzerland plays a key role in the gold market because it is home to many big gold refiners, so its report confirms what we’ve been saying about gold’s move out of the West to the strong hands of the East.

So even though the gold price fell in 2013, the smart money tuned into this flow of physical gold that was moving into the East. Meanwhile, naysayers were distracted by the Fear Trade’s selling out of gold ETFs.

“Gold flooding onto the market as a result [of large-scale ETF selling] was used to feed the voracious appetite for physical metal among consumers in India, China and numerous Asian and Middle Eastern markets,” says the World Gold Council in its latest report. You can see in the chart that gold demand reached record levels in the jewelry, bar and coin areas of the market last year. In fact, there was a 21 percent increase in demand from consumers, which was in contrast to the outflows from gold ETFs, per the WGC.

Gold Jewelry, Bar and Coin Demand Resilient in 2013
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Along with this continued demand in January, Daniela Cambone from Kitco and I discussed the factors that could drive gold to $1,400 an ounce. Find out what those are now.

Join us for our live webcast on March 5
We’re getting ready for our upcoming webcast on the “5 Reasons the Naysayers are Wrong about the Markets,” happening on March 5. Director of Research John Derrick and resources expert Brian Hicks will join me to share with you key strategies in following the smart money in gold, resources, emerging markets, the domestic market and bonds.

I invite you to register today and join us live. If you want to make sure we cover a specific topic, feel free to email us today at editor@usfunds.com.

5 Reasons the Naysayers are Wrong About the Markets

By clicking the link above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by this website and is not responsible for its content.

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Net Asset Value
as of 06/22/2018

Global Resources Fund PSPFX $5.81 0.12 Gold and Precious Metals Fund USERX $7.67 0.10 World Precious Minerals Fund UNWPX $3.87 0.08 China Region Fund USCOX $11.23 0.10 Emerging Europe Fund EUROX $6.74 0.09 All American Equity Fund GBTFX $25.78 0.01 Holmes Macro Trends Fund MEGAX $19.87 -0.05 Near-Term Tax Free Fund NEARX $2.20 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change