Frank Homes Reveals Why Gold Will “Just Explode… in the Blink of an Eye” (Podcast)
MONEYMETALS.COM
April 12th, 2019
Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.
Coming up Frank Holmes of U.S. Global Investors joins me to update us on some of the best value propositions he sees in the markets. He also reveals why he’s very bullish on the metals right now and why he expects the next leg higher to happen in the blink of an eye. Don’t miss another wonderful conversation with the man the Mining Journal named America’s Best Fund Manager, Frank Holmes, coming up after this week’s market update.
Precious metals markets are struggling to gain ground as gold prices continue to oscillate around the $1,300 level. For a 7th straight week, gold traded into or out of $1,300 per ounce. Earlier in the week, gold climbed above that key level but got pulled back below it Thursday on heavy selling.
As of this Friday morning, the yellow metal checks in at $1,293 per ounce, essentially unchanged for the second week in a row now.
Despite the weakness in gold, the gold to silver ratio rose to a new multi-decade high of 87 to 1 on Thursday as the white metal got pounded to register its lowest close of the year. Spot silver prices currently trade at $15.11 an ounce and are posting a weekly decline of 0.5%.
Platinum prices are down 0.6% this week to trade at $899. And finally, palladium is off 0.3% on the week to trade at $1,383 the ounce.
Metals bulls are currently feeling disappointed that these markets aren’t getting any boost from the dovishly postured Fed.
Minutes from the Federal Reserve’s March meeting were released on Wednesday. Policymakers telegraphed a pause on rate hikes for the rest of the year. However, they did not give any indication that rate cuts, as advocated by President Donald Trump, will be on the table.
The Fed also telegraphed an end to Quantitative Tightening by September. In the meantime, the central bank continues to unload billions of dollars in assets off its balance sheet every month, effectively trimming back growth in the currency supply. Perhaps that is weighing on precious metals markets and the broader inflation trade.
Last Friday, President Trump called for the Fed to reverse course and re-start Quantitative Easing.
Steve Liesman (CNBC): President Trump’s substantially raising the ante in his comments and criticism of the Fed. Not only does he think the Fed should cut rates, he also today for the first time advocated new Quantitative Easing, that’s the emergency measure from the financial crisis where the Fed buys bonds and increases its balance sheet to push down interest rates.
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