Van Eck Global - Since 1955

International Investors Gold FundINIVX

  • Daily Price   as of 04/24/2014

    $9.81  $-0.17 / -1.7%
  • Class A Details: INIVX

    02/10/56 1.29%/1.29%
  • Gold Commentary: March 2014

    Joe Foster Commentary Tab

    By: Joe Foster, Portfolio Manager  

    Gold bullion consolidates within a strong quarter, ends March at $1,284.01. 

    A rise in geopolitical risk created by Russia’s military occupation of the Crimea region of Ukraine drove gold to its 2014 high of $1,392 per ounce on March 17. Gold declined for the remainder of the month as tensions have steadied in Ukraine. Also, Federal Reserve Chair Janet Yellen indicated that rate increases could come as early as mid-2015. The market considers hints of rate increases that might cause real (inflation adjusted) rates to rise to be negative for gold.

    As a result, gold ended the month with a $42.43 (3.2%) loss at $1,284.01 per ounce. This is gold’s first consolidation of 2014 within a strong quarter in which gold has gained $78.36 or 6.5% due to rising geopolitical risk in many emerging markets. Gold stocks also experienced healthy gains for the quarter with the NYSE Arca Gold Miners Index (GDMNTR) up 11.8% and the Market Vectors Junior Gold Miners Index (MVGDXJTR) up 18.8%. Stocks cooled off with gold in late March, as the GDMNTR and MVGDXJTR declined 8.6% and 11.2% respectively for the month.



    Market Outlook  

    The positive performance of gold and gold shares this year reflects some shifts in market sentiment. The most significant is the realization that local geopolitical risks have the potential to disrupt global economic well-being. The United States’ track record in Iraq, Afghanistan, Libya, and Syria have lacked clear success. This could be perceived by foes as weakness. Now Vladimir Putin has found he can annex a piece of an adjacent country equal in area to the state of Massachusetts, while the international community has so far merely imposed economic sanctions on a handful of Russian nationals.

    When combined with the occupation of Georgia in 2008, this Ukrainian incursion establishes a pattern that suggests Russia has little reverence for international law or the sanctity of sovereign borders. Unfortunately, Mr. Putin must be encouraged by an approval rating in Russia that has soared. The situation is summarized by George Mason University professor Tyler Cowen in a New York Times Op-Ed piece: “as peaceful settlement becomes less common, trust declines, international norms shift, and conflict becomes more likely. So there is an unfavorable tipping point”. In our view, this escalates geopolitical risk to a level that has the potential to impact the global financial system, which in turn is supportive of gold.

     Read full March 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.

    1Expenses are calculated for the 12-month period ending 12/31/13: Class A: Gross 1.29% and Net 1.29%; Class C: Gross 2.09% and Net 2.09%; Class I: Gross 0.96% and Net 0.96%; and Class Y: Gross 1.08% and Net 1.08%. Expenses are capped contractually through 05/01/14 at 1.45% for Class A; 2.20% for Class C; 1.00% for Class I; and 1.20% for Class Y. Caps exclude certain expenses, such as interest.

    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 

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    New York, NY 10017