U.s. Global Investors, Inc. · NASDAQ:GROW
U.s. Global Investors — Vancouver Resource Conference 2012
79 slides from U.s. Global Investors's conference presentation, January 2012
Slide 1: U.S. Global Investors: Applying Super S-Curves
U.S. Global Investors Searching for Opportunities, Managing Risk Applying Super S-Curves Frank Holmes, CEO and Chief Investment Officer www.usfunds.com January 2012 1.800.US.FUNDS 12-091
Slide 2: About U.S. Global Investors (GROW)
About U.S. Global Investors (GROW) A boutique publicly listed investment adviser specializing in gold, natural resources, emerging markets and infrastructure opportunities around the world. www.usfunds.com January 2012 12-091 2
Slide 3: Performance and Results Oriented
“Performance and Results Oriented” Investment leadership results in performance Winner of 29 Lipper performance awards, certificates and top rankings since 2000 (Four out of 13 U.S. Global Investors Funds received Lipper performance awards from 2005 to 2008, six out of 13 received certificates from
Slide 4: Focus on Education
Focus on Education 28 MFEA STAR Awards for Excellence in Education www.usfunds.com January 2012 12-091 4
Slide 5: GROW Performance
GROW Performance 10-Year 29.3% Annualized www.usfunds.com January 2012 12-091 5
Slide 6: Fund Recognition: Three Funds Rank in Top 20 for 10 Years
Fund Recognition: Three Funds Rank in Top 20 for 10 Years World Precious Minerals Fund (UNWPX) ranked #5 Gold & Precious Metals Fund (USERX) ranked #7 The Global Resources Fund (PSPFX) ranked #16 Rankings were provided to Barron’s by Lipper and include all mutual funds and ETFs tracked by Lipper. Li
Slide 7: The S-Curve – Where Are We On The Curve?
The S-Curve – Big Question is Where Are We On The Curve? The S-Curve is a type of curve that shows a rapid, exponential increase in growth for a period of time, followed by a tapering or leveling off. www.usfunds.com January 2012 12-091 7
Slide 8: 7 Billion People — Tipping Point
7 Billion People — Tipping Point www.usfunds.com January 2012 12-091 8
Slide 9: Super Shift – Energy
Super Shift – Energy Oil Consumption and Industrialization, 1900 to present Oil Consumption Oil per capita rises rapidly during early industrialization, then levels to rapid real income growth. Rising world trade actually stimulates the industrialization phase. per capita: Lower U.S. labor costs ver
Slide 10: Super Shift – Electricity
Super Shift – Electricity Intensity of electricity consumption Source: BHPB Power consumption has been growing faster than the rate of GDP growth. www.usfunds.com January 2012 12-091 10
Slide 11: Huge Pent-Up Demand for Automotive Transportation in the Developing World
Huge Pent-Up Demand for Automotive Transportation in the Developing World BYD (Build Your Dreams) president Wang Chuanfu sits inside the BYD E6 Electric Car during the North American International Auto Show in Detroit, Michigan January 12, 2009. Source: REUTERS/Mark Blinch www.usfunds.com January 20
Slide 12: Tipping Points, Melting Points
Tipping Points, Melting Points Ice Turns to Water at 32º www.usfunds.com January 2012 12-091 12
Slide 13: Demographics is the Key – Super Shift Rural to Urban
Demographics is the Key – Super Shift Rural to Urban Half of the global population (>3 billion) is estimated to live in urban areas Deng Xiaoping Projected urban population is larger than the entire world population in 1965 www.usfunds.com January 2012 12-091 13
Slide 14: Chindia – Rising Middle Class
Chindia – Rising Middle Class Source: padanisaa.blogspot.com www.usfunds.com January 2012 12-091 14
Slide 15: Rising Incomes in Emerging Markets Sustain Demand – Love Trade
Rising Incomes in Emerging Markets Sustain Demand – “Love Trade” www.usfunds.com January 2012 12-091 15
Slide 16: Healthy Demand Capacity in Emerging Markets – Lower Levels of Debt
Healthy Demand Capacity in Emerging Markets – Lower Levels of Debt www.usfunds.com January 2012 12-091 16
Slide 17: Developed Economies Continue to Lose Share of World GDP
Developed Economies Continue to Lose Share of World GDP www.usfunds.com January 2012 12-091 17
Slide 18: Bubble — Negative Press on China
Bubble — Negative Press on China www.usfunds.com January 2012 12-091 18
Slide 19: Stay Tuned to the Big S-Curve
Stay Tuned to the Big S-Curve 2009 1966 www.usfunds.com January 2012 12-091 19
Slide 20: Government Policy Model — Precursor for Change
Government Policy Model — Precursor for Change Ben Bernanke, Chairman President Barack Obama of the Federal Reserve www.usfunds.com January 2012 12-091 20
Slide 21: E7 and G7 Population vs GDP
E7 and G7 Population vs GDP www.usfunds.com January 2012 12-091 21
Slide 22: Compare E7 vs G7 Money Supply Growth
Compare E7 vs G7 Money Supply Growth www.usfunds.com January 2012 12-091 22
Slide 23: Majority of G7 and E7 Countries Have Negative Real Interest Rates
Majority of G7 and E7 Countries Have Negative Real Interest Rates www.usfunds.com January 2012 12-091 23
Slide 24: Global Money Supply Growth Highest in Over a Decade
Global Money Supply Growth Highest in Over a Decade www.usfunds.com January 2012 12-091 24
Slide 25: High Correlation of Oil and Money Supply
High Correlation of Oil and Money Supply Government will likely continue to print money, like the bailout of Fannie Mae and Freddie Mac, to support the economy R-squared is a measure of correlation. See Disclosures page for more information. www.usfunds.com January 2012 12-091 25
Slide 26: Developed Countries Must Rollover a Massive $8 Trillion in 2012
Developed Countries Must Rollover a Massive $8 Trillion in 2012 www.usfunds.com January 2012 12-091 26
Slide 27: 12 Month Rate of Change for Money Supply is Turning Bullish
12 Month Rate of Change for Money Supply is Turning Bullish www.usfunds.com January 2012 12-091 27
Slide 28: Three-Month Rate of Change in Money Supply Validates New Growth Cycle in China
Three-Month Rate of Change in Money Supply Validates New Growth Cycle in China www.usfunds.com January 2012 12-091 28
Slide 29: China Still Experiencing Strong Growth Momentum
China Still Experiencing Strong Growth Momentum www.usfunds.com January 2012 12-091 29
Slide 30: Gold Demand Drivers
Gold Demand Drivers www.usfunds.com January 2012 12-091 30
Slide 31: It's Not the Political Party, It's the Political Policies
It’s Not the Political Party, It’s the Political Policies www.usfunds.com January 2012 12-091 31
Slide 32: Low Real Interest Rates Historically Fuel Gold & Silver
Low Real Interest Rates Historically Fuel Gold & Silver 2% Tipping Point for Gold Gold & silver perform well in low or negative real interest rate environments www.usfunds.com January 2012 12-091 32
Slide 33: Fiscal 2010 U.S. Government Revenues & Expenses at a Glance
Fiscal 2010 U.S. Government Revenues & Expenses at a Glance 58% www.usfunds.com January 2012 12-091 33
Slide 34: The Shocking Cost of U.S. Regulation is an Opportunity for Emerging Markets
The Shocking Cost of U.S. Regulation is an Opportunity for Emerging Markets 14% of the economy $8,000 per private sector employee and rising rapidly. www.usfunds.com January 2012 12-091 34
Slide 35: Gold — No Love from Big Pension Funds
Gold — No Love from Big Pension Funds www.usfunds.com January 2012 12-091 35
Slide 36: Driver: The Love Trade
Driver: The Love Trade www.usfunds.com January 2012 12-091 36
Slide 37: Holidays Drive Gold Demand
Holidays Drive Gold Demand www.usfunds.com January 2012 12-091 37
Slide 38: China's Increasing Jewelry Demand
China’s Increasing Jewelry Demand www.usfunds.com January 2012 12-091 38
Slide 39: Gold Love Trade
Gold “Love Trade” Strong Correlation Between Rising Incomes and Gold Price www.usfunds.com January 2012 12-091 39
Slide 40: Total Projected Cumulative Infrastructure Spending 2005-2030: $41 Trillion
Total Projected Cumulative Infrastructure Spending 2005-2030: $41 Trillion www.usfunds.com January 2012 12-091 40
Slide 41: $6 Trillion in Infrastructure Over the Next Three Years
$6 Trillion in Infrastructure Over the Next Three Years — Massive Commodity Demand www.usfunds.com January 2012 12-091 41
Slide 42: Massive Urbanization Trend in India and China
Massive Urbanization Trend in India and China www.usfunds.com January 2012 12-091 42
Slide 43: Industry Relocation — Going West and North
Industry Relocation — Going West and North www.usfunds.com January 2012 12-091 43
Slide 44: Tipping Point
Tipping Point Impact is About to Be Felt Quite Soon High Speed Train, China www.usfunds.com January 2012 12-091 44
Slide 45: Emerging High-Speed Rail Hub Cities
Emerging High-Speed Rail Hub Cities Frank Holmes High Speed Train, China www.usfunds.com January 2012 12-091 45
Slide 46: Now, the High-Speed Rail Will Change Everything…
Now, the High-Speed Rail Will Change Everything… www.usfunds.com January 2012 12-091 46
Slide 47: Global Oil Demand – Compare G7
Global Oil Demand – Compare G7 www.usfunds.com January 2012 12-091 47
Slide 48: China and India Increasing Share of Global Oil Demand
China and India Increasing Share of Global Oil Demand www.usfunds.com January 2012 12-091 48
Slide 49: China/India Share of World GDP Increased Substantially
China/India Share of World GDP Increased Substantially www.usfunds.com January 2012 12-091 49
Slide 50: Top 20 Crude Producers
Top 20 Crude Producers www.usfunds.com January 2012 12-091 50
Slide 51: Russian Production Growth Slowing Year-over-Year
Russian Production Growth Slowing Year-over-Year Growth www.usfunds.com January 2012 12-091 51
Slide 52: Historically Over 40 Percent of Global Oil Supply Under Autocratic Rule
Historically Over 40 Percent of Global Oil Supply Under Autocratic Rule Moammar Gaddafi www.usfunds.com January 2012 12-091 52
Slide 53: Disruptions Often Have Long-Lived Impact
Disruptions Often Have Long-Lived Impact Hugo Chávez President of Venezuela Mahmoud Ahmadinejad President of Iran www.usfunds.com January 2012 12-091 53
Slide 54: Cantarell Oil Field Production
Cantarell Oil Field Production Source: Secretaría de Energía de Mexico www.usfunds.com January 2012 12-091 54
Slide 55: U.S. Oil Rigs by Shale Play
U.S. Oil Rigs by Shale Play www.usfunds.com January 2012 12-091 55
Slide 56: Managing Expectations — The Math
Managing Expectations — The Math Standard Deviation (as of 12/30/11) based on 10-Year Data Rolling 1 Year NYSE Arca Gold 38.1% BUGS Index (HUI) WTI Crude Oil 35.7% MSCI Emerging Markets (MXEF) 30.6% S&P 500 Index (SPX) 19.2% Gold Bullion 13.2% 12-month rolling volatility of price action over 10 year
Slide 57: Managing Expectations — Anticipate Before You Participate
Managing Expectations — Anticipate Before You Participate Measuring Volatility Number of Number of Frequency of +10% Moves -10% Moves ±10% Moves GROW (U.S. Global Investors) 764 619 53% NYSE Arca Gold BUGS Index (HUI) 567 300 33% WTI Crude Oil 483 296 30% MSCI Emerging Markets (MXEF) 134 170 12% Gol
Slide 58: Managing Expectations — Oil Seasonality
Managing Expectations — Oil Seasonality Past performance is no guarantee of future results. www.usfunds.com January 2012 12-091 58
Slide 59: Managing Expectations — Oil vs. Dollar
Managing Expectations — Oil vs. Dollar www.usfunds.com January 2012 12-091 59
Slide 60: Managing Expectations — Gold Seasonality
Managing Expectations — Gold Seasonality Past performance is no guarantee of future results. www.usfunds.com January 2012 12-091 60
Slide 61: Managing Expectations — 60 Day Rolling Oscillator
Managing Expectations — 60 Day Rolling Oscillator www.usfunds.com January 2012 12-091 61
Slide 62: Managing Expectations — Silver Was Ahead of Itself Relative to Gold
Managing Expectations — Silver Was Ahead of Itself Relative to Gold www.usfunds.com January 2012 12-091 62
Slide 63: Managing Expectations — Life Cycle of a Mine
Managing Expectations — Life Cycle of a Mine www.usfunds.com January 2012 12-091 63
Slide 64: Managing Expectations — Life Cycle of a Mining Share
Managing Expectations — Life Cycle of a Mining Share www.usfunds.com January 2012 12-091 64
Slide 65: The DNA of Volatility
The DNA of Volatility — DNA of Each Stock Is Different Note: AEM (Agnico-Eagle Mines), AGI (Alamos), AUY (Yamana Gold), CG (Centerra Gold), CRJ (Claude Resources), DGC (Detour Gold Corp), ELD (Eldorado Gold Corp), GG (Goldcorp), HUI (NYSE Arca Gold Bugs Index), KGC (Kinross Gold), KGI (Kirkland Lake
Slide 66: Cause and Effect — Gold Bullion to Gold Stocks
Managing Expectations — Cause and Effect — Gold Bullion to Gold Stocks www.usfunds.com January 2012 12-091 66
Slide 67: Bullion Outperforms Gold Stocks
Bullion Outperforms Gold Stocks Past performance is no guarantee of future results. It is not possible to invest in an index. www.usfunds.com January 2012 12-091 67
Slide 68: Gold Equities are Undervalued Relative to Gold Bullion
Gold Equities are Undervalued Relative to Gold Bullion The stocks today are as cheap as they were during the depths of the credit crisis. www.usfunds.com January 2012 12-091 68
Slide 69: Gold Undervalued Compared to Rise in Other Areas of U.S. Economy
Gold Undervalued Compared to Rise in Other Areas of U.S. Economy www.usfunds.com January 2012 12-091 69
Slide 70: No Bubble in Gold
No Bubble in Gold Past performance is no guarantee of future results. It is not possible to invest in an index. www.usfunds.com January 2012 12-091 70
Slide 71: Gold Would Need to Be Much Higher to Cover U.S. Money Supply
Gold Would Need to Be Much Higher to Cover U.S. Money Supply www.usfunds.com January 2012 12-091 71
Slide 72: Current Global M2 Levels Mean Gold Prices Could Be Much Higher
Current Global M2 Levels Mean Gold Prices Could Be Much Higher www.usfunds.com January 2012 12-091 72
Slide 73: Reasons for Active Money Management
Reasons for Active Money Management Returns are based on historical spot prices or futures prices. Past performance does not guarantee future results. www.usfunds.com January 2012 12-091 73
Slide 74: Trying to Stop a Bull Market Has Risks
Trying to Stop a Bull Market Has Risks www.usfunds.com January 2012 12-091 74
Slide 75: Come Visit Us at…
Come Visit Us at… Facebook: www.facebook.com/usfunds Twitter: www.twitter.com/usfunds Frank Talk: www.usfunds.com/franktalk Investor Alert: www.usfunds.com/alert www.usfunds.com January 2012 12-091 75
Slide 76: U.S. Global Investors is Mobile
U.S. Global Investors is Mobile Get Investor Alert and Frank Talk On the Go Visit www.usfunds.com/apps www.usfunds.com January 2012 12-091 76
Slide 77: Disclosures
Disclosures 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. Gl
Slide 78: Disclosures
Disclosures The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in gold mining. The HUI Index wa
Slide 79: Disclosures
Disclosures Holdings in the Gold and Precious Metals Fund (USERX), World Precious Minerals Fund (UNWPX) and Global Resources Fund (PSPFX) as a percentage of net assets as of 12/31/2011: Agnico-Eagle Mines (USERX 4.08%, UNWPX 3.56%, PSPFX 0.01%); Alamos 0.00%; Allied Nevada 0.00%; Andina Minerals 0.0
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