Thursday , November 14 2019
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Frank Holmes

Articles by Frank Holmes

You’re Probably Underinvested in Gold

11 days ago

The U.S. was founded 243 years ago, and in that time it’s amassed some $23 trillion in debt and counting. As massive as this number is, it’s still less than half what Elizabeth Warren says her government-run “Medicare-for-all” program would cost… over only 10 years.
The Massachusetts senator and presidential contender made the announcement this morning, responding to critics who’ve demanded to see some details on her proposal. According to her campaign, the price tag to provide Medicare-style health care to every American would be “just under $52 trillion.”
To put things in perspective, that’s close to one-fifth of the total wealth in the entire world, which Credit Suisse estimated to stand at $280 trillion in 2017.
The $52 trillion is just the nominal price tag. It doesn’t take into

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The Opportunities Go to Those Who Can See Past the Negative Headlines

19 days ago

“Follow the trend lines, not the headlines.”
The quote, attributed to former President Bill Clinton, is one of my favorite pieces of advice. Clinton was referring to long-term data that show that conditions have actually been improving for the human race despite popular opinion to the contrary. When applied to investing, it cautions against missing opportunities because you’re too busy reacting to negative news.
To be sure, there’s more than enough negative news right now: international trade tensions, volatility in Syria, Brexit, impeachment and much more.
As I’ve said before, I happen to be a news junkie. The U.S. Global Investors office has a number of TVs, all of them tuned to financial news networks. I constantly urge everyone on our team to stay informed and raise their awareness of

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If You’re Not Long, You’re Wrong

23 days ago

This week I visited beautiful Vancouver to attend the CEO Martini Party. The annual event, hosted by Stockhouse, is an opportunity for business leaders representing a number of industries to connect and meet with newsletter writers and potential investors.
It was great to catch up with some old faces and to get to know some new ones. I want to thank Cindy Broad and everyone else at Stockhouse for putting on another successful event!
In my keynote address, I explained why I’m bullish going forward despite signs that the world could be facing its worst economic slowdown since the financial crisis. Just this week, the International Monetary Fund (IMF) downgraded its 2019 growth forecast to 3 percent, a significant drop from the past couple of years.

The reason for my bullishness is simple:

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The Optimist’s Guide to Airlines, Crypto Mining and Gold

October 14, 2019

“Travel,” Mahatma Gandhi once said, “is the language of peace.”
If that’s the case—and I happen to believe that it is—then I’m extremely bullish about the future, especially with respect to U.S.-China relations. This week I was in Lower Manhattan, and the number of Chinese tourists I observed visiting the New York Stock Exchange (NYSE) and Federal Hall National Memorial—the epicenter of American capitalism and birthplace of the U.S. government—was encouraging. Everyone wanted their picture taken with the statue of George Washington, the father of the country with which their own government has been locked in a trade war for more than 18 months now.
The trade war’s days may be numbered, however. It’s being reported that both sides of the skirmish reached a partial agreement today, laying

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Here’s Why the Number of Conventional Oil Discoveries Just Hit a 70-Year Low

October 5, 2019

Will he or won’t he?
That seems to be the question on a lot of traders and investors’ minds today with regard to Federal Reserve chair Jay Powell. An October rate cut appeared back on the table after disappointing economic news was released mid-week. But Friday’s mostly-positive employment report may have dashed those chances.
First, the “bad” news. The Institute for Supply Management (ISM) reported this week that both the U.S. manufacturing and non-manufacturing sectors weakened in September. The non-manufacturing, or services, purchasing manager’s index (PMI) fell to 52.6, down from August’s 56.4, representing the lowest reading since August 2016.
The manufacturing PMI, meanwhile, contracted for the second straight month in September, as I mentioned in this week’s Frank Talk. The gauge

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Gold: The Unimpeachable Commodity Investment

September 30, 2019

It’s official: Donald Trump has become only the fourth president in U.S. history to be the subject of a House impeachment inquiry.
I won’t say much on this, as the details of the inquiry are still unfolding. Plus, it’s an extremely divisive topic. Less than half of Americans support Trump’s impeachment, even after the news broke of his call with Ukrainian president Volodymyr Zelensky.
I will say one thing. If history is any guide, it’s highly unlikely that Trump will be convicted of any impeachment charges, especially with Republicans in control of the Senate. The only two presidents who have ever faced such charges, Andrew Johnson and Bill Clinton, were both acquitted. Richard Nixon, as you know, resigned before articles of impeachment could be drawn up.
I don’t believe investors have

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Pierre Lassonde Says Gold Could Hit $25,000 in 30 Years

September 21, 2019

September 20, 2019

By Frank HolmesCEO and Chief Investment OfficerU.S. Global Investors
This year marked the 30th anniversary of the Denver Gold Forum (DGF), the world’s most prestigious precious metal equities investment conference. The invitation-only event, held earlier this week, was attended by an incredible seven-eighths of the world’s publicly traded gold and silver companies by production, as well as leading metals and mining executives, money managers, analysts and investors.
We were one of the founding members of the DGF back in 1989, when I first bought a controlling interest in U.S. Global Investors. During this year’s forum, I was honored and moved to be recognized for our company’s contribution to the group’s creation and ongoing legacy.
U.S. Global gold and precious metal

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Protect Your Wealth Against the Law of Unintended Consequences

August 18, 2019

A number of weeks ago, I told you about my visit to the New York Stock Exchange (NYSE), where we celebrated the two-year anniversary of our quantamental gold ETF. The timing couldn’t have been better. Investor sentiment in gold was surging, as was the price of the yellow metal, on plunging yields around the world and uncertainty surrounding the U.S.-China trade war.
Some of the institutional investors I met with at the NYSE relayed their clients’ concerns about the state of the world economy right now. They were receiving more calls and emails lately about gold, which has been used in the past as a hedge against government policy that was well-intentioned but that ultimately had unintended consequences.
I can sympathize. The United States is the strongest, most prosperous country on the

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Yields Sinking Everywhere, But Gold Just Hit New All-Time Highs…

August 10, 2019

By Frank HolmesCEO and Chief Investment OfficerU.S. Global Investors
“It is no longer absurd to think that the nominal yield on U.S. Treasury securities could go negative,” Joachim Fels, PIMCO’s global economic advisor, warned investors this week. “Whenever the world economy next goes into hibernation, U.S. Treasuries—which many investors view as the ultimate ‘safe haven’ apart from gold—may be no exception to the negative yield phenomenon.”
Fels seems not to be the only investor with this idea, judging by the increased demand for gold.
The price of the yellow metal headed for its best week in nearly two months as the total value of negative-yielding debt around the world touched a new record of $15 trillion. With the nominal yield on the 10-year Treasury having fallen below 2 percent—and

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Gold Heats Up and Silver Joins the Race

July 20, 2019

Now that gold has broken through the $1,450 an ounce level, a six-high year high, the next big test is $1,500. And as I’ve said before, it can do this in the blink of an eye under the right conditions.
We may end up seeing those conditions emerge sooner rather than later.
On Thursday, Federal Reserve Bank of New York President John Williams seemed to indicate that a rate cut could be expected later this month, saying that central bankers need to “act quickly” as economic growth cools. Although he later clarified his comment, claiming he was simply citing research and not forecasting central bank action, the price of gold jumped as much as 2 percent on the news before closing above $1,440 for the first time since May 2013.
Investors took some profits on Friday, knocking the price down

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