Official US inflation is too low because it does not track food and energy prices. In his opinion, rising inflation is "inevitable" in the coming years, given the deferred demand associated with COVID-19 and the ongoing printing of unsecured money around the world.
“And as soon as people begin to understand that the Consumer Price Index (CPI) is an inaccurate prediction of inflation - that there must be other factors that have been observed in previous cycles - then gold will suddenly take on a whole new weight in the eyes of investors,” he said. Frank Holmes.
In addition to the good prospects for gold, Holmes is also optimistic about the future of the bitcoin cryptocurrency. According to him, the enthusiasm and acceptance of cryptocurrency is growing all over the world. However, he believes that investors should devote most of their financial resources to the purchase of the yellow precious metal, because it has less volatility: “The bitcoin rate is very volatile. It is much more volatile than gold - a sixfold difference in this indicator. Therefore, I would invest 10% in physical gold or stocks backed by a physical precious metal, and 2% in bitcoin. "