Central Bank Pandemic Moves Could Boost Gold
At the Prospectors & Developers Association of Canada (PDAC) Conference 2020 in Toronto, Frank Holmes spoke with Investing News Network. Frank shares his thoughts on the impact that the COVID-19 pandemic will have on capital markets globally.
At the Prospectors & Developers Association of Canada (PDAC) Conference 2020 in Toronto, Frank Holmes spoke with Investing News Network. Frank shares his thoughts on the impact that the COVID-19 pandemic will have on capital markets globally. The Chinese manufacturing PMI falling sharply down to 35 in February is a “dangerous signal,” says Frank, because China represents over half of commodity demand. In helping stem the economic fallout from the virus, central banks globally are cutting rates and injecting money into the market. The U.S. even cut rates to near-zero. On how gold could perform in this panicked environment, Frank believes it could soar past $2,000 an ounce due to central bank money printing and increased demand has a perceived safe haven asset.
Frank is confident that a vaccine will be developed soon and that markets will recover. For the full story, watch the Investing News Network interview below.
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All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (12/31/2019): Gran Colombia Gold Corp, Yamana Gold Inc, Lundin Gold Inc, Impala Platinum Holdings Ltd.
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
Frank Holmes has been appointed chairman of the Board of Directors of GoldSpot Discoveries. U.S. Global Investors owns shares of GoldSpot.