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Gold price to hit $4,000 in 3 years, real inflation is at 12 % - Frank Holmes

Kitco News

(Kitco News) - Inflation is rising out of control and investors should hold cryptocurrencies, gold and real estate to protect their wealth, said Frank Holmes, CEO and CIO of U.S. Global Investors, and executive chairman of Hive Blockchain Technologies.

In an interview with Kitco News' Editor-in-Chief Michelle Makori, Holmes, whose firm manages more than $4 billion in assets under management, said that inflation is significantly understated. He added that if inflation was calculated by traditional methods, it would be up 12%.

Holmes said that the U.S. government and the Federal Reserve is trying to talk down inflation because the economic recovery is still fragile.

"The federal government here is very concerned about that. They're, trying to tiptoe around this issue, but they can stop this. Big inflation coming and, and real assets are the place to be," he said.

With price pressures rising significantly. Holmes' reiterated his call for gold prices to push to $4,000 an ounce within three years. Along with holding precious metals, Holmes said that he is also interested in income-producing real estate.

"Hopefully, you don't have much development to do because it's going to be very expensive," he said.

Another essential asset in a portfolio is cryptocurrency. Holmes said that digital currencies are not going anywhere as an entire generation is using them.

"The idea of Bitcoin, Ethereum, it's in their blood. It's not foreign to them," he said.

As to how much of your portfolio should be in gold and cryptocurrencies, watch the full video above to find out.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.