Frank Holmes: Data & Mathematics Will Help Investors Find the Best Gold Stocks
Frank expects governments around the world to continuing issuing negative interest rate bonds. Worldwide we have now reached 17 trillion dollars of negative-yielding debt. Countries like Denmark are now paying their citizens to take out a mortgage. G20 countries are acting as a cartel to synchronize taxation, regulations and to harmonize policies between them. These regulations are stifling business, reducing the effectiveness of monetary policy.
European and South African countries are increasingly looking to mining companies to help subsidize their populations and cover their poor policies. These countries are more concerned with your environmental spending, social impact spending, and your corporate governance then assisting in developing a productive business.
Frank takes the approach of being in front of the herd, finding that competitive advantage. He says, “It’s useful being a contrarian when there is extreme emotional sentiment either positive or negative.”
He discusses how Goldspot is a crucial tool for companies to de-risk their exploration. They have a quant approach to investing, using optimal metrics to create a unique proprietary model that has outperformed the GDX and GDXJ.
Frank recommends Ray Dalio’s “Principles In Action” App, which walks investors through using his principals. Ray likes Gold and REITs because of their historic outperformance and teaches how various market cycles affect the markets.
Frank cautions, “Don’t overweight your positions and be sure to take money off the table. Cycles can last far longer than you may expect. You need to be patient and selective in your stock picking and know when to exit a stock.“
Time Stamp References:
0:40 – Outlook for bonds and the G20.
3:10 – Gold discoveries and jurisdictions.
6:50 – Franks get in front of the herd strategy.
10:40 – Favorite mentor and author.
13:30 – How to outperform in this market.
Talking Points From This Week’s Episode
• The world will continue issuing negative-yielding bonds.
• How regulations are stifling mining companies.
• Frank looks for competitive advantages in investing.
• Goldspot’s unique quant approach to the market.
Frank Holmes is the CEO and chief investment officer of U.S. Global Investors. Mr. Holmes purchased a controlling interest in U.S. Global Investors in 1989 and became the firm’s chief investment officer in 1999. In 2006, Mr. Holmes was selected mining fund manager of the year by the Mining Journal. He is also the co-author of The Goldwatcher: Demystifying Gold Investing. More than 30,000 subscribers in 180 countries follow his weekly commentary in the award-winning Investor Alert newsletter.
Mr. Holmes is a native of Toronto and is a graduate of the University of Western Ontario with a bachelor’s degree in economics. He is a former president and chairman of the Toronto Society of the Investment Dealers Association. Mr. Holmes is a much-sought-after keynote speaker at national and international investment conferences. He is a regular commentator on the financial television networks CNBC, Bloomberg, BNN and Fox Business, and has been profiled by Fortune as well as The Financial Times.