Www.usfunds.com 1.800.US.FUNDS U.S. Global Investors Searching for Opportunities, Managing Risk July 2009 09-471 What’s Driving Gold? Frank Holmes, CEO.

www.usfunds.com1.800.US.FUNDS

U.S. Global InvestorsSearching for Opportunities, Managing Risk

July 200909-471

What’s Driving Gold?

Frank Holmes,CEO and Chief Investment Officer

www.usfunds.comJuly 2009 09-471 2

Fund Recognition

Winner of 26 Lipper Fund Awards and certificates since 2000

Investment leadership results

in performance


Government Policy Model — Precursor for Change


E7 Countries


G7 Countries


Holding T-bills Or Cash No Longer Generates Much Interest and, Unlike Gold, Still Bears Credit, Inflation, FX and Political Risk


U.S. M2 Money SupplyBiggest Economy in the World

Source: U.S. Global Research


China M2 Money SupplyMost Populated Country In The World

Source: U.S. Global Research


High Correlation of Oil and Money Supply

Government will continue to print money, like the recent bailout of Fannie Mae and Freddie Mac, to support the economy


Narrow Money Supply Growth EXPLOSION

Source: Weldononline.com


Swiss Money Supply EXPLOSION



Even Japanese Money Supply Growth is Accelerating



Bank of England has Cut Rates to RECORD LOW, Shifting the Focus Towards Quantitative Easing. Bank of Canada Cut Rates to 0.50%, and Discusses Quantitative Easing



Central Bank of China Cuts Rates to RECORD LOW



Swiss Short Rates Back to Historic Lows at 0.50%



Price Deflation Intensifying Beyond ‘Historic’ Levels



Gold ‘Priced-in’ Rupee Flirting with 50,000 Rupee Per Ounce



“Consumer Cocoon”… as Consumption Collapses

Governments Panic to Reignite the Economy



China — Massive Infrastructure Initiatives Take Hold



China — Money Supply Accelerates Since November 2008



China — Money Supply Grows to New Levels



Technical Spotlight: Gold



Technical Spotlight: Gold



Technical Spotlight: Silver



Special Focus: U.S. Dollar



Special Focus: U.S. Dollar



Is Gold ‘Signaling’ That Commodities Provide

‘Value’ … or … Is Gold ‘Overvalued’ ???


What’s Driving Gold Webcast

03/05/09


In Gold They ‘Trust’ … Versus ALL Paper



Gold seasonality


Gold 60-Day % Change (March 21, 1994 through March 19, 2009)

Sources: Bloomberg, U.S. Global Research

Volatility Rolling 60 Days

Raise cash

Invest cash

Raise cash

Invest cash


Gold vs. Dollar 60-day % Change Oscillator (March 19, 1999 through March 19, 2009)

Sources: Bloomberg, U.S. Global Research

Oscillator Rolling 60 Days


Gold/S&P 500 ratio

Gold appears undervalued to the S&P 500.


Right Time for Gold Mining Stocks?

What’s Driving Gold Webcast

03/05/09


Right Time for Gold Mining Stocks?

Investor AlertSpecial Report

06/05/09


Value Drivers for Superior Performance


Higher Interest Rates Would Pose Risk to Gold



The critical drivers for gold are pointing in the same direction.

What’s Driving Gold?


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Disclosures

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

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Toronto

Stock Exchange Gold and Precious Minerals Index is a capitalization-weighted index designed to measure the performance of the gold and

precious minerals sector of the TSX 300 Index. The U.S. Trade Weighted Dollar Index provides a general indication of the international value

of the U.S. dollar. The Reuters/Jefferies CRB Index is an unweighted geometric average of commodity price levels relative to the base year average

price. The Goldman Sachs Commodity Index is a composite index of commodity sector returns, representing an unleveraged, long-only investment

in commodity futures that is broadly diversified across the spectrum of commodities.

None of U.S. Global Investors clients held any of the securities mentioned as of 3/31/09.

Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard

deviation is also known as historical volatility.

Www.usfunds.com 1.800.US.FUNDS U.S. Global Investors Searching for Opportunities, Managing Risk July 2009 09-471 What’s Driving Gold? Frank Holmes, CEO.

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