Frank Holmes, CEO and chief investment officer of US Global Investors, stopped by the Investing News Network booth at the recent Vancouver Resource Investment Conference to talk about gold prices, gold mining stocks and what to expect for 2016.
Frank Holmes, CEO and chief investment officer of US Global Investors (NASDAQ:GROW), stopped by the Investing News Network booth at the recent Vancouver Resource Investment Conference to talk about gold prices, gold mining stocks and what to expect for 2016.
Overall, he stressed that the strong US dollar has been a boon for gold mining companies in countries such as Canada and Australia. “If you look at some of the Australian gold producers we own, they’re up 300 to 700 percent in a year,” he said.
In terms of what to expect from the gold price, Holmes emphasized that gold is quite volatile, and that it would be “a non-event” for gold to gain or lose 20 percent over a 12-month period; overall, he pointed to real interest rates in the US as the catalyst to watch for.
“Do we start seeing inflation rise, and rates don’t rise? That would be a trigger for gold to take off,” he explained.
Other highlights from the conversation include:
- US Global Investors’ favorite large-cap stock (hint: it’s a royalties company)
- Holmes’ top stock pick in terms of mid-tier gold producers
- Holmes’ thoughts on how investors can assess the future of larger diversified miners such as Teck Resources (TSX:TCK.B,NYSE:TCK) and Freeport-McMoRan (NYSE:FCX)
Watch the video above for more of Holmes’ thoughts.
Securities Disclosure: I, Teresa Matich, 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.
Related reading:
VRIC 2016, Day 1: Notes from the Floor
VRIC 2016, Day 2: Notes from the Floor
