U.S. Global Investors Reports Financial Results for the Third Quarter of 2020 Fiscal Year, with Updates on Airline ETF, Gold & Precious Metal ETF and Investment in Blockchain Crypto Mining - Seite 3

“The industry has historically been affected by external events like oil crises, terrorist attacks and currently the coronavirus, but we believe it will be among the first to rebound once the economy recovers following the COVID-19 crisis,” Mr. Holmes continues. “There’s already evidence that a recovery in bookings is underway. The Transportation Security Administration (TSA) has reported a big jump in the number of daily commercial air passengers. On May 8, the number of people the agency screened in the U.S. rose to 215,444, the highest level since March 26. That’s still 2.4 million below where we were a year earlier, but I see the increase as an encouraging sign.”

Unprecedented Fiscal and Monetary Stimulus Has Driven Up Demand for Gold

“I’m also pleased with how well our U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) performed during the quarter,” Mr. Holmes says. “GOAU’s average AUM for the quarter stood at $54.7 million, an impressive increase of 321 percent from the same three-month period in 2019.

“Demand for the yellow metal has seen a boost this year from unprecedented money-printing by global central banks and finance ministers to soften the blow of the coronavirus-triggered recession. In March, central banks in Group of Seven countries purchased some $1.4 trillion in financial assets, which is nearly five times the previous monthly record set in April 2009, when the world was dealing with what was then the worst crisis since the Great Depression. Meanwhile, world governments have unleashed a combined $8 trillion in fiscal stimulus, with more on the way.

“Right now the U.S. is printing money on a scale we’ve never seen. As of mid-April, the amount of M2 money supply—which includes cash and ‘near money’ such as savings deposits, money market securities and mutual funds—has raced up 16 percent compared to the same time a year ago. All of this is constructive for the price of gold, which I believe is on a path to exceed its previous record of $1,900 an ounce. Analysts at Bank of America now see the precious metal touching $3,000 within the next 18 months.

“We’re keeping our eyes on first-quarter earnings for gold mining stock in the coming days. Time will tell, but I expect to see that many generated healthy levels of free cash flow in the March quarter, which should help attract new GOAU investors who up until this point may have been sitting on the sidelines,” Mr. Holmes adds.