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

Kitco News’ David Lin spoke with Frank Holmes about his thoughts on gold as it has skyrocketed to seven-and-a-half year highs amid the coronavirus pandemic. Frank believes that gold stocks will soon rise due to increased free cash flow on the heels of higher gold prices. On the other hand, many S&P 500 stocks could fall further as their cash dries up from high unemployment and lockdown orders.

On where the gold price could be in the next few months, Frank hasn’t yet ruled out $10,000 an ounce. Due to extreme money printing, record near-zero interest rates and tightening gold supply, Frank believes the yellow metal can soar just as palladium did. Frank added that the gold market “remains very positive, very constructive.”

For the full story watch the Kitco News interview below.

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

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (03/31/2020): Alamos Gold, Kirkland Lake Gold, Barrick Gold, Newmont Corp, Gran Colombia Gold Corp

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

Free cash flow represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

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.