The real question, said Frank Holmes of US Global Investors, is if gold can hit a new all-time high in 2020.
The gold price spent the first part of election week trading close to US$1,900 per ounce, but spiked on Thursday (November 5) to around the US$1,950 level.
Speaking to the Investing News Network, Frank Holmes, CEO and chief investment officer at US Global Investors (NASDAQ:GROW), said the price move from the yellow metal didn’t surprise him.
In fact, he expects gold to rise much higher, largely due to global money printing.
“It’s not just America, but the G20 countries are really implementing and practising in many different ways this MMT — Modern Monetary Theory — of giving out money, sending out money … this is unprecedented,” he explained.
“This is a brand new world and we’re seeing it all over. So I think that gold will have a secular bull market … and I think today this is a sign of that.”
When asked if gold could break US$2,000 again before the end of 2020, Holmes said “absolutely,” adding that the real question is if it can hit a new all-time high this year. Gold rocketed up during the summer, crashing through its previous high point at that time.
In the longer term, Holmes has a price target of US$4,000 for gold.
“I think that gold will continue to grow because of this unprecedented money printing. The MMT, also the Federal Reserve putting out lifelines to 15 different countries, helping them with US dollars. All this money printing,” he emphasized.
Watch the interview above for more from Holmes on gold and the mining sector. You can also click here for more of our election coverage.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.