The “Perfect” Market for Gold
Frank says "it's a perfect" market for gold due to rapid money printing and higher than stated inflation. To fight the pandemic economic slump, central banks globally are printing money, which Frank says will cause currency debasement and make gold as an asset more attractive.
Kitco News’ David Lin caught up with Frank Holmes on a variety of topics including gold, airlines, Fed policy and more. Frank says “it’s a perfect” market for gold due to rapid money printing and higher than stated inflation. To fight the pandemic economic slump, central banks globally are printing money, which Frank says will cause currency debasement and make gold as an asset more attractive. Another factor pushing gold higher is inflation. Official consumer price index (CPI) numbers say inflation is at just 1 percent, but Frank believes it is much higher, as much as 8 percent.
For the full story watch the Kitco News interview below.
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The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The standard deviation, or sigma, is a statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance. Mean reversion is a theory used in finance that suggests that asset prices and historical returns eventually will revert to the long-run mean or average level of the entire dataset. Free cash flow represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
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 (06/30/2020): Newmont Corp, Barrick Gold Corp, Gran Colombia Gold Corp, Wheaton Precious Metals Corp, Home Depot Inc/The, Franco Nevada Corp, Kirkland Lake Gold Ltd.
The dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. 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. 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.