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Frank Holmes: These Gold Names Have “Exceptional Value”

Palisade Radio’s Collin Kettell welcomes Frank Holmes back to the program to discuss what Frank is calling a “tsunami in the junior resource space.” What Frank is referring to is the rebalancing of the VanEck Vectors Junior Gold Miners ETF (GDXJ), and what effect this is having on small- and mid-cap gold producers.

He explains that a lot of these names are getting indiscriminately sold down and pushed out of the GDXJ portfolio to make room for bigger names. The issue here is these smaller names are reporting “phenomenal fundamentals” so investors could be missing out. Rather than being afraid of this, however, Frank tells listeners to “use it as your opportunity.”

Listen to the interview below to hear which names Frank believes have “exceptional value.”

 

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Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the interview were held by one or more accounts managed by U.S. Global Investors as of 03/31/2017: VanEck Vectors Junior Gold Miners ETF (GDXJ), Klondex Mines Ltd, Wesdome Gold Mines Ltd, Barrick Gold Corp, Newmont Mining Corp, Franco-Nevada Corp, Royal Gold Inc., Silver Wheaton Corp, Glencore PLC.

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Return on Capital (or return on invested capital) is a calculation used to assess a company’s efficiency at allocating the capital under its control to profitable investments.

Price to Book ratio is determined by dividing the price of the stock by the company's book value.