August 6, 2012

By Frank Holmes, CEO and Chief Investment Officer, U.S. Global Investors

The latest analysis of gold exploration by the well-respected Halifax-based minerals-focused research organization, Metals Economics Group, suggests that despite a huge focus by global miners and explorers on precious metals exploration over the past few years, the rate of new gold resource discovery is substantially lagging behind resource depletion. The group's latest study, "Strategies for Gold Reserves Replacement: The Costs of Finding and Acquiring Gold," reports that gold discoveries of at least 2 million ounces over the past 14 years could only replace around 56.0% of the estimated amount of gold mined over the same period, and this is only if these same discoveries prove to be economically minable.

Source: This was excerpted from U.S. Global Investors' Advisor Alert, July 20, 2012, www.usfunds.com.

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