With a portfolio of around 200 mining companies, the US Global Investors World Precious Minerals Fund returned 10.14%. One holding, Central Sun Mining, more than doubled in value, up 105%, in a bidding war between rivals to acquire this Nicaraguan penny stock.
Other big percentage gainers included New Pacific Metals, up 71.1%; New Gold, up as much as 60%; and Great Basin Gold, up 50%.
When the prices of precious metals rise, the inverse bullion funds fall. For the week ending Thursday, Jan. 29, the silver bullion spot price rose 8.41%.
Multiplying 200% negative leverage to that movement roughly corresponds to the minus 16.03% drop of this week's worst-performing fund, ProShares UltraShort Silver. Likewise, ProShares UltraShort Gold declined 11.36%.
As these types of funds attempt to track the daily performance of underlying indices or commodities, both the long and short funds can decline. So, while the PowerShares DB Base Metals Long ETN sank 8.15% on recession-level demand for base metals, the PowerShares DB Base Metals Short ETN also had a down week, off 2.91%.
On Friday, the U.S. Commerce Department reported fourth-quarter GDP shrank at a 3.8% annual pace. This helped the spot price of gold to continue its rally.
As a sign of bullish times for precious metals, demand for gold is high enough that Cash4Gold, a company that buys unwanted gold jewelry from the public, bought a 30-second Super Bowl commercial featuring celebrities M.C. Hammer and Ed McMahon in need of cash.
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