Gold ended last year up approximately 13 percent, which Frank Holmes calls “spectacular.” In this recap video of gold’s performance, Frank details how the precious yellow metal is driven by both the Fear Trade and the Love Trade. The Fear Trade deals with negative real interest rates while the Love Trade is the strong demand for gold for gift-giving in China and India. With gold’s performance doubling that of the S&P 500 Index every year since 2000, Frank believes the metal will stay on its growth trajectory.
For Frank’s full explanation of what drives gold, watch the video below!
Frank Talk Live features U.S. Global Investors’ CEO and Chief Investment Officer Frank Holmes as he dives into a new investment topic, from gold mining and global resources to digital currencies and emerging markets. Tune in weekly for updates on these key financial markets.
Want more market insights from Frank Holmes? Subscribe to his award-winning CEO blog Frank Talk by clicking here.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.
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.
Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility.
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory
U.S. Global Investors, Inc. is an investment adviser registered with the Securities and Exchange Commission ("SEC"). This does not mean that we are sponsored, recommended, or approved by the SEC, or that our abilities or qualifications in any respect have been passed upon by the SEC or any officer of the SEC.
This commentary should not be considered a solicitation or offering of any investment product.
Certain materials in this commentary may contain dated information. The information provided was current at the time of publication.
Read more by Frank Holmes