As the US tariff machine rolls on, the consequences are beginning to hit closer to home. In this commentary, Frank Holmes, CEO of U.S. Global Investors (NASDAQ:GROW), examines the growing impact of tariffs on American consumers, businesses, and markets. With a new wave of duties—possibly targeting pharmaceuticals—set to take effect August 1, Holmes outlines why investors should brace for higher prices, increased uncertainty, and mounting pressure on key sectors. U.S. customs duties topped $100 billion for t ...

Core Viewpoint - U.S. Global Investors, Inc. continues to pay monthly dividends and is increasing its exposure to the Bitcoin ecosystem, reflecting a favorable regulatory environment for digital assets and a strategic focus on sectors that perform well during market stress [1][3][4]. Dividend Announcement - The Board approved a monthly dividend of $0.0075 per share starting July 2025 through September 2025, with record dates on July 14, August 11, and September 15, and payment dates on July 28, August 25, and September 29 [2]. - Based on the closing price of $2.41 on June 16, 2025, this dividend represents an annualized yield of 3.73%, while the shareholder yield was reported at 10.5% as of March 31, 2025 [2][12]. Bitcoin Ecosystem Investment - The company is accumulating investments in the Bitcoin ecosystem, indicating a belief in Bitcoin as a legitimate portfolio diversifier [3][4]. - CEO Frank Holmes highlighted the growing trend of publicly traded companies holding Bitcoin, suggesting a shift in market perception towards digital assets [4]. Fear Trade Strategy - The company suggests that investors consider the "Fear Trade," which includes investments that historically perform well during geopolitical tensions, inflation, or market stress [5]. Gold and Precious Metals - Gold remains a key asset in global reserve management, with central banks accumulating gold at a record pace; 95% of surveyed central banks expect global gold reserves to rise [6]. - The U.S. Global GO GOLD and Precious Metal Miners ETF targets high-quality gold mining and royalty companies, focusing on those with strong fundamentals [6]. Defense Sector Insights - Global armed conflict and defense spending have surged, with 2024 marking the highest number of state-based conflicts since 1946; defense budgets are increasing with a focus on cybersecurity, AI, and aerospace modernization [7]. - The U.S. Global Technology and Aerospace & Defense ETF employs a Smart Beta 2.0 strategy to invest in companies at the intersection of national security and innovation [7].

Group 1: Economic Agreements and Defense Spending - President Trump's diplomatic tour in the Persian Gulf resulted in significant economic agreements, including a $142 billion arms deal as part of a broader $600 billion commercial package with Saudi Arabia, marking it as the largest defense sales agreement in history [3][4] - Saudi Arabia is the largest U.S. foreign military sales customer, with nearly 80% of its defense acquisitions sourced from American companies, and spent over $80 billion on defense in 2024, making it the seventh-largest military spender globally [4] - Global defense spending reached a record $2.7 trillion in 2024, reflecting a 9.4% year-over-year increase, the highest rise since at least 1988, indicating a trend of increasing military budgets across all regions [13][14] Group 2: AI and Semiconductor Investments - The emergence of AI and semiconductors as critical assets in defense was highlighted, with Saudi Arabia launching a multibillion-dollar initiative called HUMAIN to build an "AI Zone" in partnership with Amazon Web Services, utilizing American semiconductors [6][7] - NVIDIA is expected to supply at least 18,000 chips for the HUMAIN project, with potential future orders reaching several hundred thousand, while the UAE is negotiating for over a million NVIDIA chips to enhance its AI infrastructure [8] - Saudi Arabia's AI investments could generate $3 to $5 billion in annual chip sales, with long-term infrastructure spending estimated at $15 to $20 billion, positioning sovereign AI as a rapidly growing segment within the $450 billion AI infrastructure market [9] Group 3: Aerospace Industry Developments - Boeing secured its largest-ever widebody aircraft deal with Qatar Airways, valued at $96 billion for up to 210 American-made jets, emphasizing the strategic importance of aviation in economic and national security [10][11] - Commercial aircraft deals often include co-production agreements and maintenance support, which enhance soft power and reinforce the industrial base [11] Group 4: Broader Investment Opportunities - The trends in defense spending, AI infrastructure, and aerospace manufacturing present growing investment opportunities across multiple sectors, including defense contractors, semiconductor makers, and AI infrastructure providers [15]

Core Viewpoint - U.S. Global Investors, Inc. has successfully listed its gold-focused ETF, the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU), on the Bolsa de Valores de Colombia, enhancing its accessibility for Colombian investors and expanding its presence in Latin America [1][2][3] Company Overview - U.S. Global Investors, Inc. is a boutique investment firm specializing in precious metals and emerging markets, with over 50 years of history [7] - The company is headquartered in San Antonio, Texas, and provides money management and other services to various funds and ETFs [7] ETF Details - GOAU offers exposure to companies involved in the production of gold and other precious metals through mining or royalty agreements [2][3] - The ETF is already listed in New York, Mexico, and Peru, and its addition to the BVC increases its visibility across Latin America [2] - GOAU is the only non-UCITS ETF listed on the BVC that provides access to gold and precious metals mining companies [3] Investment Strategy - The GoGold ETF employs a smart-factor, rules-based investment strategy that combines passive investing efficiency with active management selectivity [5] - It tracks the U.S. Global GO GOLD and Precious Metal Miners Index, which screens companies based on valuation, profitability, and balance sheet quality [5][13] - Unlike traditional gold mining funds, GOAU focuses on high-quality, well-managed companies with consistent profitability, particularly North American royalty and streaming companies [6] Market Context - The listing of GOAU on the BVC is seen as timely due to the growing sophistication of Colombia's capital markets and increasing demand for diversified investment options amid economic uncertainty and geopolitical instability [3] - As of May 2025, only two gold-related ETFs are listed on the BVC, highlighting the unique position of GOAU in the Colombian market [3]

Trade Dynamics - A significant slowdown in trade between the U.S. and China is developing into a potential supply shock, driven by new tariffs as high as 145% imposed by President Trump [1][4] - Flexport reports that shipping capacity from China to the U.S. is being reduced at a faster rate than during the pandemic, indicating a shift in logistics patterns [3] - Container ship bookings from China to the U.S. have sharply declined, with only 90,831 TEUs recorded for the week ending April 21, nearly half the volume from the previous year [4] Economic Outlook - Economists are warning of a potential recession as early as summer, with real GDP contracting slightly in the first quarter, marking the first decline since the pandemic [7] - The International Monetary Fund has reduced its U.S. growth forecast for 2025 by nearly 1%, now projecting a growth of only 1.8% for the current year [7] Employment Impact - Layoffs in the trucking and retail sectors are anticipated by late May or early June due to collapsing shipping demand, with reports of 1,800 freight-related job cuts already occurring across several states [6] - The Port of Los Angeles has noted that import-export activities with China are currently very limited, further exacerbating the employment situation [5] Inventory Concerns - There is uncertainty regarding inventory levels for back-to-school and holiday sales, with Flexport indicating that it could take weeks for trade to normalize and goods to be restocked [8] - The Toy Association warns that Christmas 2025 could be at risk, as nearly 80% of toys sold in the U.S. are manufactured in China, and many small to mid-sized toy companies may face closure without immediate relief from tariffs [9] Long-Term Industrial Changes - The administration's protectionist trade policies are expected to encourage manufacturers to return to the U.S., with several companies announcing plans to invest and expand domestically [11][12] - Manufacturing's share of the U.S. economy has declined from about 25% in the 1950s to below 10% currently, highlighting the long-term shifts in industrial dynamics [12] Investment Strategies - Gold is identified as a safe haven asset for investors amid economic and financial turmoil related to trade policies, with significant inflows into gold-backed ETFs and a year-to-date price increase of 25.3% through April [13][14] - The demand for gold is expected to continue rising as long as tariffs remain in place, indicating potential further upside for the precious metal [14]

Financial Data and Key Metrics Changes - The company reported assets under management of $1.4 billion for the quarter, with operating revenues of $2.1 million, reflecting a decrease of $490,000 or 19% from the same quarter last year [64][65] - The net loss for the quarter was $832,000, or $0.03 per share, which is an unfavorable change compared to a net loss of $35,000 in the same quarter of the previous fiscal year [67] - Operating expenses were $3 million, a decrease of $85,000 or 3%, primarily due to lower fund expenses [66] Business Line Data and Key Metrics Changes - The decrease in operating revenues was primarily attributed to declines in assets under management, particularly in the JET ETF [65] - Operational earnings consist of advisory services and other earnings, which include realized and unrealized gains and losses on investment holdings [65] Market Data and Key Metrics Changes - The company noted a significant apathy towards the airline industry despite strong performance from airlines like United, which was up 130% last year [18][36] - The gold mining stocks are trading at multiyear highs, yet there is a paradox where redemptions are occurring despite rising gold prices [40][42] Company Strategy and Development Direction - The company aims to increase exposure to the Bitcoin ecosystem and plans to deploy remaining capital back into Bitcoin and Hive, citing a unique growth opportunity [17][26] - The strategic buyback of stock is part of the company's two-pillar strategy to enhance shareholder value through increasing dividends and buying back stock [48][53] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the airline industry transitioning from a cyclical to a growth business, driven by increased travel demand post-COVID [23][20] - The company remains bullish on gold as an asset class, anticipating continued interest from central banks and a potential rise in gold prices due to modern monetary theory [30][34] Other Important Information - The company has maintained a strong balance sheet with high levels of cash and securities, and it has no long-term debt [67] - The current dividend yield is approximately 4.13%, with a total shareholder yield of 10.53% [50][53] Q&A Session Summary Question: What is the company's outlook on the airline industry? - Management believes the airline industry will evolve into a growth business rather than remaining cyclical, supported by strong demand for travel [18][20] Question: How does the company view the current state of gold stocks? - Despite the paradox of rising gold prices and redemptions in gold stocks, management remains optimistic about the long-term potential of gold as a safe haven asset [40][42] Question: What are the company's plans regarding Bitcoin investments? - The company plans to increase its exposure to Bitcoin through a dollar-cost averaging program and investments in Hive shares, anticipating regulatory changes that will favor Bitcoin [26][17]

Financial Data and Key Metrics Changes - The company reported assets under management of $1.4 billion and operating revenues of $2.1 million for the quarter, with a net loss of $832,000, translating to a loss of $0.03 per share, which is an unfavorable change compared to a net loss of $35,000 in the same quarter last year [65][68] - Operating revenues decreased by $490,000 or 19% from $2.6 million in the same quarter last year, primarily due to decreases in assets under management, particularly in the JET ETF [66] - Operating expenses were $3 million, a decrease of $85,000 or 3%, mainly due to lower fund expenses [67] Business Line Data and Key Metrics Changes - The operational earnings consist of advisory services and other earnings, which are subject to market fluctuations [66] - The operating loss for the quarter was $893,000, an unfavorable change of $405,000 compared to the same quarter last year [67] Market Data and Key Metrics Changes - The company experienced a significant decrease in assets under management, which impacted overall revenues [66] - Despite the challenges, the company maintains a strong balance sheet with high levels of cash and securities, and no long-term debt [68] Company Strategy and Development Direction - The company aims to create thematic products that are sustainable using a Smart Beta 2.0 strategy, which requires rigorous backtesting [13] - There is a strategic focus on increasing exposure to the Bitcoin ecosystem, with plans to deploy capital back into Bitcoin and Hive shares due to their growth potential [17][26] - The company is committed to stock buybacks and increasing dividends as part of its strategy to enhance shareholder value [49][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the airline industry transitioning from a cyclical to a growth business, citing strong performance from airlines like United [18][23] - There is a belief that gold will continue to perform well as a safe haven asset, especially with increasing central bank purchases and regulatory changes favoring physical gold [30][34] - The company acknowledges current market apathy but remains confident in the long-term growth potential of its products and strategies [45][59] Other Important Information - The company has been actively engaging with shareholders through various platforms, including social media and video content [70][73] - Upcoming participation in industry conferences to connect with potential shareholders and enhance market presence [71] Q&A Session Summary Question: What is the outlook for the airline industry? - Management believes the airline industry will transition from being cyclical to a growth business, supported by strong demand and pricing power [18][23] Question: How does the company plan to address current market challenges? - The company plans to focus on stock buybacks and increasing dividends while maintaining a strong balance sheet to weather market volatility [49][51] Question: What is the company's stance on gold investments? - Management remains bullish on gold, citing its historical performance and the increasing interest from central banks as key factors for future growth [30][34]

U.S. Global Investors September 30, 2024 - December 31, 2024 Second Quarter 2025 Results Webcast Frank Holmes CEO and Clo Lisa Callicotte CFO Holly Schoenfeldt Director of Marketing Today's Presenters WWW.USFUNDS.COM Forward-Looking Statements & SEAETF During this webcast we may make forward- looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don't pertain to historical facts are subject to risks and uncertainties tha ...

Financial Performance - Operating revenues for Q3 2025 were $2.1 million, down from $2.6 million in Q3 2024, with a net loss of $382,000 or $0.03 per share[1][22]. - Total assets under management (AUM) decreased to approximately $1.2 billion as of March 31, 2025, from approximately $1.5 billion at December 31, 2024[2]. - The company repurchased 784,466 shares during the 12-month period ended March 31, 2025, an increase of approximately 12% compared to the same period in 2024[16]. - As of March 31, 2025, the company reported approximately $26.3 million in cash and cash equivalents, providing substantial flexibility for future opportunities[20]. - The company initiated a monthly dividend of $0.0075 per share starting in April 2025[15]. Investment Strategy - The company plans to increase its investment in Bitcoin and HIVE Digital Technologies, reflecting a favorable shift in the U.S. regulatory environment towards digital assets[4]. - The Travel UCITS ETF (TRIP) transitioned to an actively managed strategy, focusing primarily on the airline industry[13][14]. - Smart beta 2.0 merges passive and active investing strategies, offering potential benefits to investors[39]. Market Trends - The U.S. Global Technology and Aerospace & Defense ETF (WAR) launched in December 2024, has gained traction amid rising geopolitical risks, with global defense spending reaching a record $2.7 trillion in 2024[5][7]. - Gold prices reached an all-time high of over $3,500 per ounce, with expectations that it could climb as high as $6,000 due to Basel III rules recognizing gold as a Tier 1 asset[10]. Risks and Volatility - Investments in non-U.S. securities may lead to increased volatility and reduced liquidity due to currency fluctuations and political instability[36]. - Cryptocurrencies, including Bitcoin, are highly speculative with significant risk and historical price volatility expected to continue[37]. Stock Performance - The company's shareholder yield was 10.5%, more than double the yield on five-year and ten-year Treasury bonds[3]. - The IBD 50 index identifies the top 50 growth stocks based on fundamental and technical indicators, published weekly[38].

Financial Performance - Total assets under management decreased to approximately $1.2 billion as of March 31, 2025, down from $1.7 billion a year earlier, representing a decrease of $548.2 million [141]. - Average assets under management for the nine months ended March 31, 2025, were $1.5 billion, compared to $1.9 billion for the same period in 2024, indicating a decline of approximately 21.1% [141]. - Operating revenues for the three months ended March 31, 2025, decreased by $490,000, or 18.9%, compared to the same period in 2024, primarily due to a $494,000 decrease in advisory fees [150]. - The company recorded a net loss of $382,000 ($(0.03) per share) for the three months ended March 31, 2025, compared to a net loss of $35,000 ($(0.00) per share) for the same period in 2024 [149]. - The Company recorded a net loss of $153,000 ($(0.01) per share) for the nine months ended March 31, 2025, compared to net income of $1.0 million ($0.07 per share) for the same period in 2024, a change of approximately $1.2 million [156]. - Total consolidated operating revenues decreased by $2.1 million, or 24.0 percent, for the nine months ended March 31, 2025, primarily due to a decrease in advisory fees of $2.1 million, or 24.3 percent [157]. Expenses and Income - Total consolidated operating expenses decreased by $85,000, or 2.8%, for the three months ended March 31, 2025, primarily due to a $281,000 reduction in general and administrative expenses [151]. - Total consolidated operating expenses decreased by $144,000, or 1.7 percent, for the nine months ended March 31, 2025, driven by an $378,000, or 8.0 percent, reduction in general and administrative expenses [158]. - Total consolidated other income increased by approximately $520,000 to $2.1 million for the nine months ended March 31, 2025, primarily due to net investment income of $1.8 million, an increase of $456,000 compared to the previous year [159]. - Net investment income increased to $548,000 for the three months ended March 31, 2025, up from $460,000 in the same period in 2024, reflecting an increase of approximately 19.1% [152]. - The company recorded a tax expense of $137,000 for the three months ended March 31, 2025, an increase of $62,000 compared to the same period in 2024 [153]. - A tax expense of $229,000 was recorded for the nine months ended March 31, 2025, compared to $446,000 for the same period in 2024, representing a decrease of $217,000 [160]. Assets and Equity - The company held investments carried at fair value of $13.3 million as of March 31, 2025, which is approximately 27.3% of the company's total assets [147]. - The Company had net working capital of approximately $37.5 million as of March 31, 2025, a decrease of $666,000, or 1.7 percent, since June 30, 2024 [163]. - Consolidated shareholders' equity decreased by $2.9 million, or 5.9 percent, to $46.1 million since June 30, 2024, primarily due to stock repurchases and dividends paid [164]. Financing and Contracts - The Company has access to a $1.0 million credit facility, which remains unutilized as of March 31, 2025 [165]. - The investment advisory contracts with USGIF have been renewed through September 2025, and the advisory agreement for U.S.-based ETFs has been renewed through July 2025 [166]. - The Company believes current cash reserves and financing will be sufficient to meet foreseeable cash needs for operating activities [168]. Redemption and Fund Activity - The company experienced net redemptions during the nine months ended March 31, 2024, primarily driven by equity fund liquidations, contrasting with an increase in assets under management in 2025 [144].