Gold prices are currently off all-time highs, but the commodity is up 16 percent in the 3 last months and up 300 percent in the last decade. Frank Holmes, chief executive and chief investment officer of U.S. Global Investors, shared his insights on the precious metal and where investors should look now.
“The gold equities give you a lot more leverage,” Holmes told CNBC.
“Approximately 1 percent move in bullion historically translates into a 2 to 3 percent move in gold equities.”
Holmes said most commodities have gone through inflation-adjusted price levels of 1980 except for gold and silver.
“And if gold were to go to that inflation-adjusted rate, it would be $2,300 an ounce,” he said. Although it may not happen in the short-term, Holmes said it’s a gradual process that will eventually take place.
Holmes’ Picks:
Randgold
Royal Gold
Silver Wheaton
Iamgold
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CNBC Data Pages:
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More Market Points...
- Why Gold Will Hit $3,000 in 2 Years: Strategist
- Gold's 'Money' Value is $4,000 to $11,000: Strategist
...And Counterpoint:
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CNBC Slideshows:
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Disclosures:
Holmes owns shares of GOLD, RGLD, SLW, and IGA via owning shares of his USERX fund.
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