Yesterday (February 24), Frank Holmes, the CEO and CIO of asset management firm U.S. Global Investors, talked about gold, which is historically the world’s favorite safe haven asset, and Bitcoin, the cryptoasset that many refer to as digital gold.
U.S. Global Investors, Inc., which is headquartered in San Antonio, Texas describes itself as “an innovative investment manager with vast experience in global markets and specialized sectors.”
His comments during an interview with David Lin, who is an anchor and producer at Kitco News.
According to a report published by Lin yesterday, Holmes had this to say about gold:
“It’s a non-event for gold to go up or down 20% in a year. Two years ago it went up two standard deviations for the first nine months, so it were to do that again, then it could go to $2,800. That would be up two standard deviations, and that wouldn’t be extraordinary. Three standard deviations over twelve months is. I think [gold] is undervalued. I think it’s probably worth about over $4,000 if you use money printing number data, then you’re talking $7,000 or more. I feel comfortable that gold can easily run to $2,500 or $3,000.“
He also talked about why during the current turmoil in the financial markets gold has outperformed Bitcoin, which some people in the crypto community had at various times called the ultimate safe haven asset (even though this claim was frequently mocked by gold bugs such as Peter Schiff):
“I think when you look at gold, its breath and depth, historical significance as a wonderful asset, is really showing up when you have war. Bitcoin is a new phenomenon. It’s over a decade old. It’s new, and its ecosystem around the world is new. Yes, it’s widely embraced by generations X, Y, and Z and millennials, in particular, but gold has a phenomenal historical significance that whenever there’s big inflation or there’s political turmoil, that gold is the asset class of choice.
“Historically, it’s been gold, so I would stick with that. I think once we get more rules and regulations come into the ecosystem, then Bitcoin will take on its next leg.“
At the time of writing (12:30 p.m. UTC on February 24), according to data by CryptoCompare, Bitcoin is trading around $35,240, down 9.76% in the past 24-hour period. As for gold, per data by Kitco.com, spot gold is selling for around 1959.60, up 2.6% in the past 24-hour period.
Last April, Holmes talked to Lin about gold during another interview with Kitco News:
“We still have negative real interest rates and that bodes extremely well for gold, so I think gold can be easily $2,700 like palladium was last year. It can be $5,000. I don’t know when the money printing stops, but it could be $10,000 to get the global economy back and functioning.“
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.