VIDEO — Frank Holmes: Bullish on Gold, but Silver Will Shine Brightest in 2023

Frank Holmes: Bullish on Gold, but Silver Will Shine Brightest in 2023youtu.be

Gold held up "exceptionally well" in 2022, according to Frank Holmes of US Global Investors (NASDAQ:GROW), and in 2023 he expects the yellow metal to thrive. However, it's silver that he thinks will really shine.

"I remain extremely bullish on gold as an asset class. They can't raise rates much more this quarter without having a very tragic global recession. And I think that there's still going to be negative real interest rates," Holmes said.

"So that means assets like gold are going to become even more important in a diversified portfolio. And silver is even more special because 20 percent of silver is for solar panels," he added.

Holmes explained that right now short-term interest rates in the US are higher than rates for 10 year government bonds. A reversal in that situation could kick off a market turnaround and ignite the gold sector.

"You need some type of a global crisis to see the short rates fall below the 10 year, and then we will see the markets turn," he said, noting that he thinks the gold price will hit US$4,000 per ounce in the upcoming cycle.

If that change in rates happens, gold stocks are also poised to benefit.

"I think that some of these mid-cap and small-cap stocks which have great reserves per share are going to get bought up. I think we're going to get in a very wonderful dynamic gold stock market in the next year," Holmes commented.

"What happens in gold stocks is that when rates start to fall in the US and the stock market starts to rise and gold is rising — that's when you get the phenomenal 10 baggers in gold stocks."

Going back to silver, Holmes emphasized that it's the metal he's most bullish on in 2023 because of its beta.

"I'm bullish on gold, and silver always has a beta 50 percent greater. That means if gold goes up 10 percent, silver's going up 15 (percent)," he said, adding that the beta for precious metals stocks is even higher.

"If gold goes up 20 percent over the next 18 months, that means silver's going up 30 percent. And that means that silver and gold stocks could go up 300, 500 percent," Holmes concluded.

Watch the interview above for more of his thoughts on gold and silver in 2023.

Don’t forget to follow us @INN_Resource for real-time updates!

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.