FOLLOWING THE HOT INFLATION DATA. THE COMMODITY IS UP MORE THAN 13% SO FAR THIS YEAR. HERE WITH MORE ON THE RECENT RALLY IN GOLD, THE STOCKS TO WATCH, CHRIS MANCINI, ASSOCIATE PORTFOLIO MANAGER OF THE GOLD FUND WHICH IS UP NEARLY 10% IN JUST THE LAST MONTH. CHRIS, WE'RE SEEING NOTICEABLE OUTFLOWS IN GOLD-BACKED ETFs. SO WHAT'S DRIVING THE PRICE HIGHER? >> RIGHT, THAT'S A GREAT QUESTION. GIVEN THESE OUTFLOWS IN THE ETFs NORMALLY WHAT WE SEE IS THE PRICE OF GOLD FLUCTUATES CLOSELY WITH FLOWS INTO AND OUT OF ETFs BECAUSE THE ETFs ARE THE MARGINAL BUYER OR SELLER OR GOLD. GOLD HAS GONE UP NOT WITHSTANDING THE OUTFLOWS YOU MENTIONED. WHAT THAT POINTS TO IS THERE MUST BE PHYSICAL BUYERS OF GOLD, WE DON'T KNOW WHERE THEY'RE COMING FROM. WE KNOW SPECIFICALLY CENTRAL BANKS ARE BUYING. CHINA HAS BOUGHT, BUT THEY BOUGHT CONSISTENTLY OVER THE LAST FEW MONTHS OR YEAR AND HALF. WE DON'T KNOW EXACTLY WHERE THE OTHER PHYSICAL BUYERS ARE COMING FROM. IT COULD BE HIGH NET WORTH INDIVIDUALS, IT COULD BE CHINESE RETAIL, BUT THERE'S GOOD MOMENTUM. >> YOU SAY PHYSICAL BUYERS. WE SAW THE HEADLINES ABOUT COSTCO DOING ALL THESE BUSINESS SELLING GOLD BARS. IS THIS WHAT YOU MEAN? >> YEAH, THINGS LIKE THAT, EXACTLY. SO COSTCO WE KNOW IS SELLING LOTS OF PHYSICAL GOLD. IT COULD BE HIGH NET WORTH AMERICANS, CHINESE, BUYING PHYSICAL GOLD, PUTTING IT IN A FAULT. >> WHAT DOES THE DEMAND SAY TO YOU? WHY ARE PEOPLE DOING THIS? THE CENTRAL BANK, AN INDIVIDUAL, A FAMILY OFFICE. WHAT IS IT EXPRESSING? >> CENTRAL BANKS, WHAT WE KNOW IS WHEN RUSSIA INVADED UKRAINE, THE UNITED STATES AND EUROPEAN GOVERNMENTS ESSENTIALLY CONFISCATED RUSSIANS' FOREIGN EXCHANGE RESERVES AROUND $500 BILLION. AND SO CHINA HAS $3 TRILLION OF FOREIGN EXCHANGE RESERVES. THEY DON'T WANT THAT TO BE CONFISCATED. SO THEY'RE DIVERSIFYING OUT OF DOLLARS AND INTO GOLD. AND OTHER CENTRAL BANKS AROUND THE WORLD ARE DOING THAT AS WELL BECAUSE GOLD, YOU KNOW, OBVIOUSLY CANNOT BE DIGITALLY SEIZED OR CONFISCATED. >> SO THEY'RE TAKING DOLLARS AND SELLING DOLLARS AND BUYING PHYSICAL GOLD AND STORING IT BECAUSE YOU CAN'T GET TO MY VAULT. >> EXACTLY. EXACTLY. >> YOU CAN FREEZE MY ACCOUNT. YOU CAN DO WHATEVER YOU WANT THROUGH THE BANKING SYSTEM BUT YOU CAN'T COME GET MY -- >> EXACTLY. THAT'S A HUGE TREND GOING ON GLOBALLY AMONGST GLOBAL CENTRAL BANKS. THAT'S ONE BIG DRIVER OF THE GOLD PRICE. THE OTHER MIGHT BE THAT, YOU KNOW, THAT INDIVIDUALS IN CHINA, FOR EXAMPLE, ARE SEEING A FALTERING REAL ESTATE MARKET. THAT'S WHERE THEY HELD THEIR SAVINGS. NOW THEY'RE SAYING REAL ESTATE IS GOING DOWN, WE WANT TO DIVERSIFY INTO A HARD ASSET WE CAN STORE AND HOLD FOR A LONG TIME, HAND TO OUR GRANDCHILDREN, SOMETHING LIKE THAT, AND SOCK IT AWAY. THEY'RE BUYING PHYSICAL GOLD. >> WHEN WE SAW PRICES OF GOLD GOING UP, IF YOU SEE IT GOING UP SAY 16% OVER THE LAST YEAR, PRICES OF GOLD STOCKS, THE SHARES, HAVE GONE UP 30%. SO OUTPACING GOLD. GIVE US A SENSE OF THE COMPANIES YOU LIKE THAT REPRESENT SHARES OF GOLD. >> RIGHT, SO THE BIGGEST HOLDING IN THE FUND IS AGNIKO, A LARGE CANADIAN BASED PRODUCER. THEY HAVE A HUGE PRESENCE IN THE GOLD BELT, WHICH IS IN NORTHERN QUEBEC, A VERY SAFE JURISDICTION. THERE'S A GREAT MINING JURISDICTION. THERE'S A TOWN NEARBY, SO LOTS OF GOOD GOLD PRODUCTION RELATIVELY LOW
