We should expect another run in commodities heading into the fall, said Frank Holmes, CEO and CIO of U.S. Global Investors.
“[There’s] continuing demand that you’re seeing out of the emerging markets and in particular, seeing a lot of government policies out of China, and India—so these are all for infrastructure building programs and they’re going to continue,” Holmes told CNBC.
Holmes said there is an infrastructure buildup for copper wiring in China to build power stations for rural areas, which will create more jobs and increase demand for copper.
“You [also] see zinc prices pick up with the 'clunkers' program in China and India,” he said.
Holmes said gold prices tend to rise when there is big inflation or deflation. But he told investors to keep gold as "portfolio insurance,” and not to get rich.
“We have deflation because we have negative interest rates,” he said.
“And now we have deficit spending. So any country that has negative interest rates coupled with massive deficit spending, gold goes up in that currency. I’d always advocate a modest amount of 5 to 10 percent and you don’t buy gold to get rich. You have it as a portfolio insurance.”
No immediate information was available for Holmes or his firm.
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