Frank Holmes: A Rate Hike Would Disrupt Gold Prices and American Exports

Author: USGI
Date Posted: October 2, 2015 Read time: 1 min

In this week’s Gold Game Film, Kitco’s Daniela Cambone asks Frank Holmes whether he agrees with International Monetary Fund (IMF) Managing Director Christine Lagarde’s recent comment that even a small U.S. interest rate hike would lead to a “significant change.”

In this week’s Gold Game Film, Kitco’s Daniela Cambone asks Frank Holmes whether he agrees with International Monetary Fund (IMF) Managing Director Christine Lagarde’s recent comment that even a small U.S. interest rate hike would lead to a “significant change.”

Frank says he agrees with the IMF, noting that a hike right now would likely “make the dollar scream higher,” which would be bad for gold prices in U.S. dollar terms. He also says it would disrupt “the American economy for exports, and we just saw last week that durable goods are down.”

Watch the interview to find out why Frank calls Glencore the “Lehman Brothers of mining.”

 

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

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.

Fund portfolios are actively managed, and 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 of U.S. Global Investors Funds as of 6/30/2015: Glencore PLC.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.