Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Frank Holmes Is Bullish on Gold: It’s Outperformed the S&P 500 (Video)

  by    0   0

Last month, US Global Investors CEO Frank Holmes said he thinks gold may well hit $1,500 this year. He listed the specter of increasing inflation, a weakening dollar, and income growth in China and India as three reasons to be bullish on the yellow metal.

This week, Holmes appeared on CNBC’s Squawk Box and continued to make a case for buying gold

As Holmes pointed out, gold is actually outperforming the S&P 500.

What’s really interesting is since 2000, the price of bullion has outperformed the S&P 2-to-1, 200% more performance on your money. And last year, it was up 13%, double-digits again. And year-to-date, it’s outperforming the S&P 500.”

Holmes has been bullish on gold for a while. He seems to be one of the few people out in the mainstream that understands what’s going on. During the Squawk Box interview, he said the massive money-printing around the world has made gold an important part of an investment portfolio.

He has also been one of the few people expressing real concern over spiraling levels of debt. In February, Holmes called American debt a “head-spinning sum.”

For nearly a decade now, the Fed has kept interest rates at historically low levels, flooding the economy with cheap money … I see this growing debt bomb as just the latest sign that investors might want to consider adding to their gold exposure. The yellow metal has been sought as a safe haven during times of economic and systemic market risk.”

During his Squawk Box interview, Holmes also noted tightening gold supply.

On gold supply from mines – it’s peaking. So, we’re going to see a shrinkage in supply.”

The numbers bear him out. The recently released Metals Focus Gold Focus 2018 report projects mine production to remain “broadly flat,” coming in at around 3,295 tons. This continues a trend we’ve been seeing over the last several years. Gold supply plateaued last year. Global mine output rose just a paltry 5.7 tons in 2017, according to data compiled by the World Gold Council. That represented the smallest increase since 2008. Mine production in 2016 was also roughly equal to 2015.

Plateauing mine output has led to speculation that we could be nearing or at “peak gold.” This is the point where the amount of gold mined out of the earth will begin to shrink every year, rather than increase, as it has done pretty consistently since the 1970s. During the Denver Gold Forum last September, the World Gold Council chairman said he thinks the world may have already reached that point.

Holmes hit on another trend he sees as a positive for gold during the CNBC interview – rising tariffs.

I’m a big believer that government policies are a precursor to change. So we track whatever the money supply’s growth rates are and real interest rates. Well, tariffs are always inflationary … So, now you’re going to get a tariff war going on. Higher inflation. Higher gold prices.”

Holmes went on to say even if the trade war doesn’t play out, he still sees higher inflation on the horizon. In fact, he believes inflation is understated. He said that if we went back to factors that were used to calculate CPI back in the ’90s, inflation would probably be around 8 or 9% right now.

I launched the airlines jet ETF. Why? Because I saw the cost of my flights went up 300%. My optionality of flight options dropped by 20%. That’s inflationary!”

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Peter Schiff: Why Shouldn’t You Give Up on Gold and Silver?

A lot of investors wonder about the lack of movement in gold and silver, especially given rampant inflation. Why haven’t we seen a big rally in precious metals as many expected? Why shouldn’t you just give up on gold and silver? Peter Schiff answers these questions in this video.

READ MORE →

Peter Schiff and Brent Johnson Debate: Will the Dollar Rise of Fall in 2022?

Peter Schiff and Santiago Capital CEO Brent Johnson got together on the Rebel Capitalist podcast to debate the trajectory of the dollar in 2022. Johnson is bullish on the dollar. Peter thinks the greenback is going to tank.

READ MORE →

Artificially Low Interest Rates? So what?

The Federal Reserve has held interest rates artificially low for decades. Even after pushing rates to zero in the wake of the 2008 financial crisis, “normalization” only managed to raise rates to 2.5% — hardly “normal.”  The central bank began cutting rates in 2019, even before the coronavirus pandemic. But what difference does it make? […]

READ MORE →

Peter Schiff: What’s Going on With the Price of Gold?

Gold has been rangebound of late, bouncing between $1,750 and $1,800 an ounce for several months. Given the inflationary environment, one would expect gold to be soaring. So, what’s going on with the yellow metal? And when will the price of gold go up? Peter Schiff tackled this question during a recent Q&A session on […]

READ MORE →

Peter Schiff: There Is Only One Type of Inflation

When talking heads and politicians talk about inflation, they tend to make distinctions between “food inflation,” or “energy inflation,” or “wage inflation.” In this clip from his podcast, Peter Schiff explains that this isn’t the right way to look at inflation. In fact, there’s only one type of inflation. And the Federal Reserve is the […]

READ MORE →

Comments are closed.

Call Now