U.S. Global Investors [www.usfunds.com]

Should Gold Investors Fear the Fed?

Yahoo! Finance welcomes Frank Holmes to discuss the Federal Reserve’s stimulus program, better known as quantitative easing (QE), to find out how this might affect the price of gold in 2014. Frank says it all depends on where inflation goes from here; last year inflation fell from 1.7 to 1.2, and now it’s pushing back up against 1.7. Inflation is inversely related to real interest rates, and if real interest rates are negative, historically the gold price moves up.

Watch the interview now to see what Frank says about physical gold demand out of Asia and how he recommends investors allocate their portfolios to gold.

 

What else is driving gold?

 

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by this website and is not responsible for its content. The Continuous Commodity Index (CCI) is a broad grouping of 17 different commodity futures, which is a benchmark of performance for commodities as an investment. The COMEX is a commodity exchange in New York City formed by the merger of four past exchanges. The exchange trades futures in sugar, coffee, petroleum, metals and financial instruments. The interview references the investment theory of an investment as insurance against a separate market event that could negatively affect performance of an investment. The reference does not guarantee performance or a safeguard from loss of principal by investing in that asset.