Van Eck Global - Since 1955

International Investors Gold FundINIIX

  • Daily Price   as of 08/19/2014

    NAV DAILY CHANGE
    $14.37  $-0.17 / -1.2%
  • Class I Details: INIIX

    INCEPTION DATE GROSS/NET EXPENSES1
    10/02/06 1.08%/1.00%
  • Gold Commentary: July 2014

    Joe Foster Commentary Tab

    By: Joe Foster, Portfolio Manager  

    Gold bullion falls as dollar strengthens, ends July at $1,282.55 per ounce. 

    Gold reached a monthly high of $1,345 per ounce on July 10 when it was reported that the parent company of one of Portugal’s largest banks missed some debt payments. So far it seems there has been no impact on the broader European banking system, however, the default renewed concerns about financial risks, causing the U.S. dollar to rally. Despite the tragic downing of a passenger jet over Ukraine, there has been no significant escalation of the war there. Likewise, apart from the shelling of Gaza and fighting in Libya, there have been no escalations in Middle Eastern conflicts. Meanwhile, through Congressional testimony, Federal Open Market Committee (FOMC) meetings and FOMC minutes, the Federal Reserve (the “Fed”) showed no discernable change in policy or outlook. The combination of U.S. dollar strength and a lack of new developments in other recent gold drivers contributed to gold’s decline, ending the month down $44.77 (3.37%) at $1,282.55 per ounce.

     

     

    Market Outlook  

    Gold continues to trade in the $1,200 to $1,400 per ounce range and we continue to maintain our view that the price is forming an important base. Chinese demand, marginal mining costs, heightened geopolitical risk, and an absence of persistent bullion exchange-traded product (ETP) selling are helping to support the price at current levels. Technically, gold broke its bear market price trend back in February 2014. Silver only recently broke out of its technical downtrend, which can be traced back to its peak in 2011. We view this technical strength in silver as another element helping to form a base in the sector.

    Mining companies are finding many ways to cope with the weak gold prices. Capital discipline is one area where there have been significant improvements. One aspect of this is a resurgence in heap leaching. We recently spent time in the deserts of Nevada and southern California to examine companies that are mining or developing heap leach projects. Thanks to Nevada, the U.S. is the fourth largest producer of gold in the world, making the U.S. a net exporter of roughly $3 billion of gold in 2013. The I-80 (Humboldt River) corridor between Winnemucca and Elko is among the richest gold producing regions in the world. Nevada is now a mature gold mining area and production has declined somewhat, however, there remains an active exploration and development scene that creates potential opportunities for investors.

     Read full July Commentary » 

  • Video Viewpoint: Gold

    M&A in Gold: Reining in Costs and Sustainability of Super Majors

    Joe Foster
    Portfolio Manager, International Investors Gold Strategy

    View now »


    M&A in Gold: 2014 and Beyond

    Joe Foster
    Portfolio Manager, International Investors Gold Strategy

    View now »


    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