Gold Will Be in Strong Demand Until 2011: Strategist
Gold vs. technology—which is a better play between now and the end of the year? David Katz, chief investment officer of Matrix Asset Advisors, and Frank Holmes, chief executive and CIO of US Global Investors, shared their insights.
“We like to compare the 'E7'—the seven most populated countries in the world: They are four times the G7 in population and their income levels are rising,” Holmes told CNBC.
“There’s a propensity in these countries to buy gold for both monetary [purposes] and jewelry.”
Holmes said some of the major countries in the E7 are entering the season of holiday giving.
“We’re in [Muslim holiday season] Ramadan—which is the first big surge of buying; we’re going to into Diwali in India; we’ll have Christmas and then Chinese New Year,” he explained. “So you have demand taking place in August until approximately first week of February.”
Opposing View: Katz Says Gold Market Is Like Tech in 1999
Scorecard—What They Said:
- Holmes' Previous Appearance on CNBC (Jul. 6, 2010)
- Katz' Previous Appearance on CNBC (Aug. 19, 2010)
More Gold Market Analysis:
- Gold Bull: Western Economies Face Hyperinflation
- CNBC.com Exclusive: Why'd Gold Roll Over When Stocks Fell?
- Gold, Stocks or Treasurys—Where to Invest Now
CNBC Data Pages:
Top Gold Miners:
Freeport McMoRan Copper & Gold
No immediate information was available for Holmes or Katz.