Frank Holmes, Karim Rahemtulla: Where Gold Is Now

Author: USGI
Date Posted: July 6, 2016 Read time: 2 min

Karim Rahemtulla, Co-Founder of Beyond the Dollar and contributor for The Non-Dollar Report, chats with Frank Holmes about the current state of the gold market.

Karim Rahemtulla, Co-Founder of Beyond the Dollar and contributor for The Non-Dollar Report, chats with Frank Holmes about the current state of the gold market. The two share their thoughts on the recent run in the yellow metal and Karim states that this could be the “initial stages of another bull market” – Frank agrees.

Frank says gold’s price movements are based on negative interest rates, and that this run is reminiscent to that of 2001 and 2002 when gold first went from $300 to $400. “No one believed it,” he said. “And I think that’s the scenario we are in now.”

 

Past performance does not guarantee future results. 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.

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.

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 03/31/2016: Barrick Gold Corp, Franco-Nevada Corp, Royal Gold Inc.

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.

A basis point, or bp, is a common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01% (0.0001).

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

Cash Flow Return on Invested Capital (CFROIC) is defined as consolidated cash flow from operating activities minus capital expenditures, the difference of which is divided by the difference between total assets and non-interest bearing current liabilities.