Frank Believes Venezuela Will Default on Its Obligations to Citibank

In this week’s segment of Gold Game Film, Frank Holmes joins Daniela Cambone of Kitco News to discuss gold’s surge Monday in response to Venezuela’s $1 billion gold swap with Citibank. But Frank doesn’t see the socialist country keeping up with its payments, as such countries “never really respect money, especially other people’s money.”

If Venezuela defaults, Frank says, “it will be very easy for the Chinese to buy up that whole block” from Citigroup to support the renminbi as a credible, global currency.

Watch the entire interview, in which Frank explains the “magic” of real interest rates.

None of U.S. Global Investors Funds held any of the securities mentioned in this interview as of 3/31/2015.

The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns.

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. This news release may include certain “forward-looking statements” including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.