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Goldman Sachs Lowballing Gold Forecast; $1,575 is Too Low Says Frank Holmes

Kitco News

(Kitco News) - Gold prices should respond positively to mounting global debt, with firms like Goldman Sachs even underestimating their bullish stance of $1,575 an ounce in three months on the yellow metal, said Frank Holmes, CEO of U.S. Global Investors.

“They’re always going to be understated, and clearly that means that it could easily go another $150,” Holmes told Kitco News.

“I think it’s more important to look at other people that really understand gold as an asset class,” he added.

On monetary policies around the world, Holmes said that zero interest rates may return globally as all eyes are on the European economy.

“Europe is such a basket case of taxation and regulation that they can’t get their economy going so they’ve gone to zero interest rates, in fact, Denmark is paying you to take out a mortgage,” he said.

On the protests in Hong Kong, Holmes said that the rest of the world is silently siding with the U.S.

“I think that China is quite embarrassed by this thing that’s taking place in Hong Kong. It’s a great test of the moral character of China,” he said.

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