The Fear for Gold is Deflation

Author: Frank Holmes
Date Posted: January 15, 2015 Read time: 2 min

In the latest episode of Kitco’s Gold Game Film with Frank Holmes and host Daniela Cambone, Frank says when it comes to the gold market, the great fear right now isn’t inflation, but is deflation instead. It is the fear of deflation that is causing gold to rally because governments will respond with printing an excessive amount of money.

Frank also discusses the movements we saw in South African gold producers like Gold Fields and Harmony Gold last week. These names moved higher as the South African rand depreciated versus the U.S. dollar, causing gold to outperform in rand terms.

Frank discusses the 10-year Treasury and how its movement is affecting the yellow metal, and ends the episode with his touchdown pass of the week for gold. Tune in now!


Frank Holmes at The Bloomberg Advantage - U.S. Global InvestorsDid you catch Frank on Bloomberg Radio last week? Don’t miss his investment outlook for gold.  Click here for the replay!

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

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 09/30/2014: Gold Fields Ltd, Harmony Gold Mining Co Ltd, Kinross Gold Corp, Newmont Mining Corp, Randgold Resources Ltd, Yamana 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.