VIDEO - Frank Holmes: Gold Too Cheap to Sell, Miners Need to HODL

After a lackluster summer, can gold rally in the final quarter of 2021?

Frank Holmes, CEO and chief investment officer at US Global Investors (NASDAQ:GROW), thinks it’s possible. He told the Investing News Network in June that the yellow metal could hit a new all-time high this year, and three months later he still believes it could happen.

“The biggest headwind is just the G7 finance ministers’ cartel using futures markets to suppress it,” said Holmes. The G7 nations are Canada, France, Germany, Italy, Japan, the UK and the US.

“The G7 finance ministers are working like a cartel the way OPEC is,” he continued, mentioning a 15 percent tax on corporations’ earnings that the seven countries agreed to back in June. “The only way they can go on with their modern monetary theory of money printing … is that they have to work in concert.”

Holmes recently attended the Denver Gold Group’s forum in Colorado Springs, and he said that one of the points he tried to drive home at that event was the idea that miners should “HODL” their gold.

HODL stands for “hold on for dear life,” and is a term that originated in the cryptocurrency community, although it’s since gained mainstream usage through popular memes.

“I had a message for them — if they want to get Millennial investors, and you have free cash flow like Barrick Gold (TSX:ABX,NYSE:GOLD) does and Newmont (TSX:NGT,NYSE:NEM) does, they should HODL 10 percent of their gold — it’s too cheap to sell,” he said.

Aside from gold, Holmes, who is also interim executive chairman at cryptocurrency miner HIVE Blockchain Technologies (TSXV:HIVE,NASDAQ:HIVE), discussed the company’s latest full-year results, as well as recent news out of China about the cryptocurrency space.

He sees great potential for gold, bitcoin and ethereum in the final three months of 2021.

“What is the DNA of volatility of gold over 60 trading days, what is (the volatility of) bitcoin and ethereum? What you have to recognize is that over one day, bitcoin and ethereum are five to six times greater than gold, and when it comes to 10 trading days and 60 trading days, bitcoin and ethereum can easily be much greater — gold goes up 10 percent, the bitcoin and ethereum spaces can go up 40, 50 percent. Vice versa, (in a correction) they can be taken on the chin,” he said.

“In that forecast, we’re not overbought right now in bitcoin or ethereum nor gold, and so it would be very easy for all three of them to go up one standard deviation,” continued Holmes. “It would be easy for gold to strap on a 15 to 20 percent run; it’s easy for silver to be even greater, and for bitcoin and ethereum to go 60, 70 percent over 60 trading days.”

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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.