U.S. Global Investors [www.usfunds.com]

Understanding the Gold Market with Frank Holmes

Maurice Jackson of Proven and Probable welcomes Frank Holmes to the program for a discussion on gold in the New Year – what Frank has his eye on, where he believes investors should be focusing, and the strategies his investment team puts to use. Frank starts by discussing some of the important economic indicators he watches each month, the primary one being the purchasing managers’ index (PMI). He explains that the PMI is an important, forward looking data point, particularly when compared to GDP which is backward looking. Frank says PMI is significant because of its high correlation with the movement of many commodities, such as oil and copper.

Maurice goes on to chat with Frank about President Donald Trump’s policies and how they could affect the market. Frank also touches on why he's excited about gold mining companies right now.

 

Watch the full interview here.

 

 

Frank Holmes and U.S. Global Investors have no affiliation with the interview outlet, Proven and Probable. Opinions expressed by Frank Holmes in this interview are his own and are not representative of U.S. Global Investors.

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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. 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.

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Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Global Resources Fund and the Near-Term Tax Free Fund as a percentage of net assets as of 12/31/2016:  Sibanye Gold Ltd (Global Resources Fund 1.27%, Near-Term Tax Free Fund 0.00%).

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Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors.

The basis for gold being the fourth most liquid asset in the world, as stated in the interview, can be sourced to Canadian businessman and royalty and streaming company owner Pierre Lassonde. The specific reference is also in the following article found here.