Van Eck Global - Since 1955

International Investors Gold FundINIVX

  • Daily Price   as of 08/01/2014

    NAV DAILY CHANGE
    $11.49  $0.13 / +1.1%
  • Class A Details: INIVX

    INCEPTION DATE GROSS/NET EXPENSES1
    02/10/56 1.46%/1.45%
  • Gold Commentary: June 2014

    Joe Foster Commentary Tab

    By: Joe Foster, Portfolio Manager  

    Gold bullion rises on escalating geopolitical risk, ends June at $1,327.32 per ounce. 

    Gold advanced $77.59 (6.2%) in June. The primary driver was the invasion of western Iraq by the radical rebel group ISIS. The withdrawal of U.S. troops from Iraq, ineffective diplomacy, and the current U.S. Administration’s policy of limited engagement may have enabled the escalating chaos and civil strife witnessed in the region. So far, unrest in Libya, Mali, Egypt, Syria, and Iraq has not created major disruptions in global commerce. The bulk of Iraqi oil production in the south of the country does not appear to have been threatened. However, problems in the region are increasing and, in our opinion, caused upward pressure on oil prices and downward pressure on the dollar in June, to gold’s benefit.

    U.S. inflation statistics were also supportive of gold. The Consumer Price Index rose 0.4% in May, bringing the annualized rate for the first five months of 2014 to 2.6%, while the core rate (excluding food and energy) stands at an annualized 2.3%. To have inflation edging higher at the same time first quarter GDP growth fell 2.9% raises concerns. Moreover, the Fed has been targeting 2% inflation, but it has also indicated that it has no intention of raising interest rates until sometime in 2015. We believe gold could benefit from falling real (inflation adjusted) interest rates.

     

     

    Market Outlook  

    We believe gold is showing signs of strength this summer, during a season that normally experiences demand weakness. Geopolitical risk, in our opinion, has been the dominant driver of the gold market this year. Problems in Turkey, Ukraine, Thailand, and the Middle East have the potential to evolve into broader turmoil that could impact the global economy. While geopolitical risk is supportive of gold, historically it has not been a longer-term driver. In our opinion, elevated levels of financial risk are generally needed in order to generate longer-term momentum for gold. We do see financial risks building that could become drivers as we move into 2015.

    Markets appear to be largely ignoring risk. The stock market continues to make all-time highs, while the future CBOE Volatility Index and the St. Louis Fed Financial Stress Index are near record low levels last seen in 2007. Corporate bond spreads of around 1% are also down to 2007 levels. The sovereign debt of European nations is higher now than it was during the sovereign debt crisis, yet 10-year sovereign yields are near record lows. Lenders are also taking on more risk, issuing 39% more credit cards than last year to subprime borrowers. The Bank for International Settlements in its annual report said “Overall, it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally.”

     Read full June Commentary » 

  • Video Viewpoint: Gold

    Global Research: Mining in Burkina Faso

    Joe Foster and Ima Casanova
    Senior Gold Analysts


    "We invest across the spectrum, but in Burkina, it is mostly mid-tier and junior companies that are active. Most of Burkina’s gold deposits are moderate to smaller-sized, so we find smaller companies there. Because of the favorable operating environment, there are quite a few interesting opportunities."


    View now »


    Gold 2014: Investment Demand, Geopolitical Risks, and Corporate Discipline

    Joe Foster and Ima Casanova
    Senior Gold Analysts


    "Emerging markets geopolitical risks have probably been the main driver of gold this year. People are worried about financial stability with headlines coming from Thailand, Venezuela, Ukraine, and Turkey. People are also concerned about the growth in China and the Chinese banking system."


    View now »


    Gold 2Q 2014: Review of Earnings Results and Costs

    Joe Foster and Ima Casanova
    Senior Gold Analysts


    "The market focused more on cost and operating results, and did not necessarily punish companies that missed earnings expectations"


    View now »


    Gold: Back on Track for 2014?

    Joe Foster
    Senior Gold Analyst


    “In the near-term, $1200 is an important technical level. The gold market fell to around the $1200 level in June of this year, and we're retesting those lows right now in the wake of the Fed announcement that they will begin tapering in 2014.”


    View now »


    Global Research: Mining in the Dominican Republic

    Joe Foster
    Portfolio Manager,
    Van Eck International Investors Gold Investment Team


    "There have been some exciting discoveries, some great drill results, come out of the Dominican Republic."


    View now »


    Global Research: Mining in Greece

    Joe Foster
    Portfolio Manager
    Van Eck International Investors Gold Investment Team


    “Greece is taking a second look at mining and we are seeing some of it gold properties being developed. They have created a fast-track program for new businesses. . .”


    View now »


  • The Many Uses of Gold

    Gold Globe

    As far back as 1500 BC, Egyptians and other ancient peoples used gold for currency, and its importance has not waned since. In today’s world, we may not carry gold coins in our pockets, but gold remains one of the most highly valued commodities for cultures across the globe.

    Sound Currency
    Gold’s historic role as a sound currency alternative is recognized universally — from farmers in India whose high-carat jewelry is a form of savings, to investors in the West who accumulate coins and bars, to central bankers around the globe who hold gold in their foreign exchange reserves.

    Powerful Investment Tool
    Today, gold is recognized as a potentially powerful tool in an investment portfolio. Gold may:

    • Keep pace with inflation and offer a hedge against currency devaluation.
       
    • Generate positive returns in periods of economic stress and political/economic upheaval.
       
    • Provide diversification through a low correlation to the movements of the financial markets.
       

  • Making the Investment Case for Gold

     
  • Important Disclosure 

     Unless otherwise stated, portfolio facts and statistics are shown for Class A shares; other classes may have different characteristics. 

    NAV: Unless you are eligible for a waiver, the public offering price you pay when you buy Class A shares of the Fund is the Net Asset Value (NAV) of the shares plus an initial sales charge. The initial sales charge varies depending upon the size of your purchase.  No sales charge is imposed where Class A or Class C shares are issued to you pursuant to the automatic investment of income dividends or capital gains distributions. It is the responsibility of the financial intermediary to ensure that the investor obtains the proper “breakpoint” discount. Class C, Class I and Class Y do not have an initial sales charge; however, Class C does charge a contingent deferred redemption charge.  See the prospectus and summary prospectus for more information.

    1Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends and interest payments on securities sold short, taxes and extraordinary expenses) from exceeding 1.45% for Class A, 2.20% for Class C, 1.00% for Class I, and 1.10% for Class Y of the Fund’s average daily net assets per year until May 1, 2015. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

    Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends and interest payments on securities sold short, taxes and extraordinary expenses) from exceeding 1.45% for Class A, 2.20% for Class C, 1.00% for Class I, and 1.10% for Class Y of the Fund’s average daily net assets per year until May 1, 2015. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

    2The NYSE Arca Gold Miners Index (GDM) is a modified market capitalization-weighted index comprised of publicly traded companies involved primarily in mining for gold. The S&P® 500 Index, calculated with dividends reinvested, consists of 500 leading companies in leading industries of the U.S. economy. The U.S. Dollar Index (DXY) indicates the general international value of the U.S. dollar. The DXY does this by averaging the exchange rates between the U.S. dollar and six major world currencies. All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.

    The views and opinions expressed are those of Van Eck Global. Fund manager commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. Any discussion of specific securities mentioned in the commentaries is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary.

    You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program.  The Fund is subject to the risks associated with concentrating its assets in the gold industry, which can be significantly affected by international economic, monetary and political developments. The Fund’s overall portfolio may decline in value due to developments specific to the gold industry. The Fund’s investments in foreign securities involve risks related to adverse political and economic developments unique to a country or a region, currency fluctuations or controls, and the possibility of arbitrary action by foreign governments, including the takeover of property without adequate compensation or imposition of prohibitive taxation. The Fund is subject to risks associated with investments in debt securities, derivatives, commodity-linked instruments, illiquid securities, asset-backed securities, CMOs and small- or mid-cap companies. The Fund is also subject to inflation risk, short-sales risk, market risk, non-diversification risk and leverage risk. Please see the prospectus and summary prospectus for information on these as well as other risk considerations.

    Investing involves risk, including possible loss of principal. An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and other information.  Please read them carefully before investing. 

    Not FDIC Insured — No Bank Guarantee — May Lose Value 

    Van Eck Securities Corporation, Distributor
    335 Madison Avenue, 19th Floor
    New York, NY 10017
    800.826.2333