U.S. Global Investor’s CEO Frank Holmes joins Kitco News to talk
geopolitics, the Chinese yuan and illegal mining overtaking cocaine
trafficking in Colombia. News broke recently that illegal gold mining
has been occurring in the South American country, so much so, that
Colombian President Santos came out saying that it brings in roughly
$2.5 billion annually and is a major issue of concern. According to
Holmes, the issue is with the country’s leadership. 'Santos has sadly
lost control of rule of law,” Holmes said. ‘The real, major
disappointment has been the leadership of going after these thugs that
are hurting mine workers,’ he added, noting that there are very,
high-grade deposits in Colombia. Commenting the gold price ahead of U.S.
Thanksgiving, Holmes says it is really the imminent rate hikes that are
causing short-term volatility in prices. February comex gold futures
are down on the day and were last quoted down $2.40 at $1,070.80 an
ounce. ‘Thoughts are that if rates rise 25 basis points, gold is going
to get clobbered,’ Holmes said. ‘I don’t think so…the real number we’re
going to follow in 2016 is CPI (consumer price index).’ Kitco News,
November 25, 2015.
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