Asset Managers Rebuild Gold Positions After Price Pullback

Large asset managers are rebuilding their gold positions after a recent price pullback, according to Frank Holmes, CEO and chief investment officer of U.S. Global Investors.

The S&P/TSX Global Gold Index tracks the world's leading gold companies, while the FTSE Gold Mines Index Series includes all gold mining companies with sustainable production of at least 300,000 ounces per year.

As of June 30th, 2007, several holdings in these indices include Jiangxi Copper (1.74% in China Region Opportunity Fund), Silvercorp Metals Inc. (2.78% in World Precious Minerals Fund and 0.89% in Global Resources Fund), Gold Fields Ltd. (6.05% in Gold Shares Fund and 2.58% in World Precious Minerals Fund), and Sino Gold Mining Ltd.

The indices' holdings indicate that some asset managers are increasing their gold exposure despite the recent price drop, which could be a sign of future market trends.