VIDEO - Frank Holmes: There’s a “High Probability” of US$4,000 Gold

Precious Metals

Frank Holmes of US Global Investors is also calling for a “super surge” in silver and silver stocks as the yellow metal rises.

As money printing accelerates globally, gold’s chances of surpassing its old high are rising.

“With all this money printing it looks like gold could easily surge,” Frank Holmes of US Global Investors (NASDAQ:GROW) told the Investing News Network.

“We forget what happened to palladium in 2018/2019, in particular 2019 — out of nowhere it went from US$1,000 (per ounce) to US$2,700. Why can’t that happen again to gold? It’s very feasible, and you don’t have a war, you just have this new money printing.”

Holmes sees major potential for gold, and noted that based on the yellow metal’s performance during the financial crisis of 2008/2009, it could go well beyond its current price of around US$1,800 per ounce, easily taking out its previous apex of about US$1,920.

“If we take a look at the last money printing, we’re going to go from US$1,500 to US$4,000. I think over the next three years there’s a high probability of gold going to US$4,000,” he commented.

In terms of the other precious metals, Holmes also anticipates a big move for silver, which he described as a warrant on gold. “We’ve seen looking back over regressional studies that after you get a sustainable run in gold you get a 50 percent bigger move in silver. It’s just a matter of time,” he said.

“I think … as gold runs (we’re going to get) a super surge in silver and silver stocks.”

For those wondering how to get into the market, Holmes advised abiding by the “golden rule,” which suggests that investors allocate 10 percent of their portfolio to the yellow metal.

That 10 percent could include individual stocks, exchange-traded funds like the SPDR Gold Trust (ARCA:GLD) or the GO GOLD and Precious Metal Miners ETF (ARCA:GOAU) from US Global Investors. Importantly, Holmes emphasized that when buying individual stocks it’s important to look for management with a track record of success.

Watch the interview above for more from Holmes on gold, gold stocks and other precious metals.

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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.

The Conversation (1)
Andrew Palmer
Andrew Palmer
17 Jul, 2020
The problem I have with ‘balanced portfolios’ is that when one sector is up another is down so you maintain value? What is the point? The idea of investing is to make money, to grow your portfolio so if you believe, like Frank here, that gold will go to $4000, or even just $3000, the rises in miners will be significantly higher than the percentage rise in the metals themselves. So, for me anyway, 10% is a meaningless, worthless in fact. So, I am a believer that gold and silver will reach new highs and my commitment to this space is somewhat higher than the ‘recommended’ 10%, 100% in fact. I admit a touch risky but I’m comfortable with an all or nothing strategy.