Skip to search.
Make Y! My Homepage
 
  1. Drag the "Y!" and drop it onto the "Home" icon.
  2. Select "Yes" from the pop up window.
  3. Nothing, you're done.

If this didn't work for you see detailed instructions

Close this window

Gold to Make New Highs Above $2000, Says Commodity Maven Frank Holmes

Posted Oct 30, 2009 12:00pm EDT by Peter Gorenstein
Related: gld, gdx, gold, rgld, fcx, FNV.TO

Gold is likely to make a new inflation-adjusted high before its current bull move ends.  That's the word from Frank Holmes the man behind the Morningstar 5-star rated U.S. Global Investors Gold and Precious Metals Fund, which is up 33% in the past year. 

The journey to new highs will comes with bumps along the road.  Holmes predicts several 10% price swings in the near future.  But, he firmly believes negative interest rates combined with massive deficits is a recipe for gold to shine.

What's his price target?

Holmes predicts gold can easily reach $2300 - the inflation-adjusted high it reached in the early 1980s.

Even-though he is a gold bull, Holmes says investors should only put 10% of their assets in gold; half in bullion and the other half in stocks.

And, he preaches caution when selecting gold stocks, recommending only buying those companies that "respect value per share."  Meaning, avoid the names that may need to raise capital through new stock offerings.  Stocks that make his grade include RandGold, and two royalty companies, Royal Gold and Franco Nevada.

Go to Tech Ticker

There are no comments yet

Post a comment

Sign in to post a comment, or Sign up for a free account.
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges.

Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. Fundamental company data provided by Capital IQ. Financials data provided by Edgar Online. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Analyst estimates data provided by Thomson Financial Network. All data provided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.