The CEO and Chief Investment Officer of US Global Investors explains that the average price of gold last year was actually slightly higher than it was in 2020. He also believes that the talk about gold is too often focused only on the daily movement of prices.
“Gold has outperformed the financial market 86% of the time this century. This is a phenomenal result. It has outperformed the S&P 500 by 225% this century. Therefore, the absence of a gold reserve is a mistake in thinking,” the expert believes. “Gold is one of those great, unique assets, but it is so locked in its movements that only the daily price determines its existence.”
Asked what a fair price for gold should be, Holmes said the precious metal is definitely not at the right level given factors such as negative real interest rates and massive G7 money printing: “I think she should be nearly $1,000 higher from current levels.”