Porter Stansberry with Aaron Brabham

Ep. 121 Frank Holmes: Is Gold Near a Bottom?

  • 12/27/2013
  • with Frank E. Holmes
Frank Holmes, CEO and CIO of U.S. Global Investors, joins Stansberry Radio.
We just finished producing this week's show with Frank Holmes, a well-respected wealth manager that Porter has known for many years. He's an expert on gold stocks, and as you'll hear in the interview, he provides insight that even surprises Porter.
If you hold gold stocks or have been thinking about buying some, you don't want to miss what Frank has to say.
On this week's episode:
Aaron asks Porter about his success in business.
Porter breaks down: (00:01:40)
*How he started his business from scratch and how he accumulated his wealth... It's something anyone can do if they follow these easy steps.
*How he not only built wealth for himself but how he's created wealthy partners as well. He reveals a few secrets to becoming a great partner.
*How you can radically increase your income. Most people feel stuck in their jobs and feel limited with how much they earn... You'll discover some new ways to earn more.
*What the typical timeline is for a career... It has to do with three phases that Porter talks about in detail. Find out where you are in your career path.
Aaron asks Porter his thoughts on the 100-year birthday of the Federal Reserve: (00:04:40)
*You'll hear Porter breakdown the real role the Fed plays... It's one most people fail to see.
*Who really suffers from the Fed printing endless supplies of money. Hopefully you're not one of them.
*Why the Fed allows banks to run on enormous leverage. It has something to do with the relationship between the two.
Porter then talks with his guest Frank Holmes. Frank is the CEO and CIO of U.S. Global Investors. There are few analysts or money managers that know as much about resource stocks as Frank does.
Porter and Frank discuss: (00:15:00)
*Whether or not the value of gold is near a bottom.
*How the price of gold is set by the emotions of those who see it as an alternative currency.
*The importance of the "love trade." Porter had never heard of this trade but once he did it explained a lot about the future of gold and its value.
*Why Frank believes that 2014 will be a great year for resources and particularly gold and silver.
Porter asks Frank what his position is on the next big gold mine to be put into production. They discuss: (00:21:30)
*The Caribou Factor. You don't want to miss why this is so important.
*How the socialist mindset of small communities in Latin America and Africa play an important role in the future of gold production.
*Why many predict a shortage of gold miners over the next five years.
*Porter asks Frank to share his favorite gold stock producing company. Porter knows it well and it has over 70% gross margins and is one of the few quality businesses out there right now.
*Why it's imperative that you stop doing what 99% of gold investors do. It's simple but most people will never do it.
After the interview, Aaron asks Porter once again about one of his favorite topics... shale oil.
Porter talks about: (00:27:00)
*An important event that could occur in the near future. It's one that will change the shape of how America deals with its energy glut.
*Why Porter believes we are about a year away from reaching this milestone that most never thought we'd achieve and why it's so important.
*How oil has historically influenced elections... and what Americans can expect for the next Presidential election in 2016.
You'll also hear Porter give his take on listener feedback about Bitcoins, Social Security being a Ponzi scheme, the student loan bubble, and how to place simple investment orders.

This Episode's Guest

Frank E. Holmes

Frank Holmes is CEO and Chief Investment Officer of U.S. Global Investors, Inc., which manages a diversified family of mutual funds and hedge funds specializing in natural resources, emerging markets and infrastructure.
The company’s funds have earned many awards and honors during Mr. Holmes’ tenure, including more than two dozen Lipper Fund Awards and certificates.
The Global Resources Fund (PSPFX) was Lipper’s top-performing global natural resources fund in 2010. In 2009, the World Precious Minerals Fund (UNWPX) was Lipper’s top-performing gold fund, the second time in four years for that achievement. In addition, both funds received 2007 and 2008 Lipper Fund Awards as the best overall fund in their respective categories.
Mr. Holmes was 2006 mining fund manager of the year for Mining Journal, a leading publication for the global resources industry, and he is co-author of “The Goldwatcher: Demystifying Gold Investing.”
He is also an advisor to the International Crisis Group, which works to resolve global conflict, and the William J. Clinton Foundation on sustainable development in nations with resource-based economies.
Mr. Holmes was previously a research analyst, portfolio manager and managing director of corporate finance in Canada.  He is a former president and chairman of the Toronto Society of the Investment Dealers Association, and he served on the Toronto Stock Exchange’s Listing Committee.
Mr. Holmes is a much-sought-after keynote speaker at national and international investment conferences. He is also a regular commentator on the financial television networks, and has been profiled by Fortune, Barron’s, The Financial Times and other publications.