Frank Holmes: “Silver is going to have a sudden, massive move to $50 that everyone will be surprised over…” (Podcast)
Frank Holmes: “Silver is going to have a sudden, massive move to $50 that everyone will be surprised over…” Podcast by Mike Gleason for Money Metals
Mike Gleason: It is my privilege now to welcome in Frank Holmes, CEO and Chief Investment Officer at U.S. Global Investors. Mr. Holmes has received various honors over the years, including being named America’s best fund manager by The Mining Journal. He is also the co-author of the book, The Goldwatcher: Demystifying Gold Investing and is regular guest on CNBC, Bloomberg, Fox Business and also right here on the Money Metals podcast.
Frank, welcome back. And thanks for joining us again. How are you today?
Frank Holmes: I am great. Thank you. It’s great to be back.
Mike Gleason: Yeah, it certainly has been a while. A number of months since we had a chance to talk and suffice it to say a lot has changed in the world and the market since then. We’ve got COVID-19 wreaking its havoc on world economies. We have race protests and rioting. It isn’t the sort of backdrop you would expect for the stock market which has been moving relentlessly higher, but the Fed is not about to let prices fall it seems. The intervention is off the charts, starting with trillions of dollars to prop up the repo markets last fall. Then in March, they pulled out all the stops and began buying everything including ETFs and junk bonds. So, what’s next for the equity markets? We aren’t sure which dynamic is more important for investors in the months ahead; the lousy real-world fundamentals or the artificial stimulus being pumped in by the Fed? Give us your thoughts here.
Frank Holmes: Well, I think this is bigger than the fed and that’s a thing to recognize. And I think I’ve said previous times in your program that after 2008, 2009, the government in the U.S. along with other governments around the world, they became the finance ministers and the central bankers basically became a cartel. The G20 became synchronized taxation and regulation. And that was a real big part, now they physically can’t fly between countries. All of a sudden moving money became very difficult for everyone. And AML costs have continued to rise since then. So, now we have this calamity of a pandemic and you’re seeing this sort of collectivism taking place amongst these ministers. So, they’re all printing collectively and they’re all taking their leads, so it is unprecedented when you hear Powell speak today…. I don’t know these words which he used, he said, “We will continue to use powers, forcefully, proactively, and aggressively. We will continue.”