Frank Holmes: Gold is Going to Have an Incredible Run
Frank says, “Gold has been so resilient all year especially when you look at real interest rates.” Due to negative interest rates in other countries, the dollar has held up reasonably well. When they talk about rates peaking gold will hit $1500 in the blink of an eye. The supply of gold is shrinking, and the costs are getting more expensive which is settings us up for a beautiful gold cycle. Gold is going to have an incredible shine and pass through the 1900 level in the next three years.
His biggest concern with the global markets is from the PMI index which peaked last year. He discusses why the economies of China and India are essential due to their large populations and how gold is tied to these nations. Half of all commodity demand in the world comes from China. If the trade wars are resolved, then we will see the PMI bottom which would set up commodity demand. Also, investors should keep an eye on earnings as that will show where the broader stock markets will go.
Large mergers appear to be a trend there is a shift in the big companies acquiring other companies. There has been very little in the way of research and thus discoveries with these large companies. Mergers will trickle down to the mid-caps eventually.
Frank discusses how the world is changing dramatically with the advent of new data technologies and artificial intelligence. Funds are using the tech to gauge sentiment and short-term swings in the market.
Talking Points From This Week’s Episode
• PMI indicator and how to read commodity demand and GDP.
• Women in India own 6x more gold than Fort Knox.
• Advanced machine learning is transforming exploration.
• Gold held up to low-interest rates in the rest of the world.
Time Stamp References:
1:30 – Golds performance vs. currencies
4:00 – Commodity performance and demand globally
6:00 – Mergers and when will big companies acquire mid-tiers.
7:20 – Peak gold and energy
10:00 – Uses for A.I and machine learning.