Charles W. Lutter, Jr.
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                          Attorney and Counselor at Law
                                 103 Canyon Oaks
                              San Antonio, TX 78232
                                        o
                            Telephone: (210) 496-5438
                               Fax: (210) 496-1631

                                  April 7, 1997



Board of Directors
U.S. Global Investors, Inc.

Dear Sirs:

           I have acted as  counsel  to U.S.  Global  Investors,  Inc.,  a Texas
corporation   ("U.S.   Global"),   in  connection  with  the  U.S.  Global  1997
Non-Qualified  Stock  Option  Plan  (the  "Plan")  and the  preparation  of U.S.
Global's Registration  Statement on Form S-8 being filed with the Securities and
Exchange Commission in connection therewith.

           Please be advised that I have examined such  proceedings  and records
of U.S.  Global,  and have made  investigation  of such other matters,  as in my
judgment  permits  me to render an  informed  opinion on the  matters  set forth
herein. Based upon the foregoing, it is my opinion that:

           (i) U.S. Global is a corporation duly organized, validly existing and
in good standing under the laws of the State of Texas,  with full power to issue
and sell shares of its Class A Common Stock pursuant to the Plan.

           (ii) The shares of U.S. Global's Class A Common Stock to be issued by
U.S.  Global pursuant to the Plan have been duly authorized and, when issued and
paid for in accordance with the terms of the Plan, will be legally issued, fully
paid and non-assessable.

           I consent to the use of this  opinion as an exhibit to U.S.  Global's
Registration Statement on Form S-8 and to the use of my name in the Registration
Statement and Plan disclosure documents.

Sincerely,


/S/ CHARLES W. LUTTER, JR.
Charles W.  Lutter, Jr.

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