Aug 28, 2018 Guest(s): Frank Holmes CEO, U.S. Global Investors
In late July, Vanguard, one of the world's largest mutual fund managers, decided to drop "Precious Metals," from its name, changing its $2.3 billion Vanguard Precious Metals and Mining Fund to the "Vanguard Global Capital Cycles Fund."
Frank Holmes, CEO of U.S. Global Investors, said that Vanguard's move, along with reducing its holdings of mining stocks from 80% of its "Global Capital Cycles" fund to 25%, is part of a larger trend that makes it more difficult for investors to passively invest in gold.
As gold heads below $1,200 an ounce, some analysts have called a bottom. Holmes said that a rebound for the bullion is still in the cards as the U.S. dollar remains the primary driver.
"The money is consistently in price reversals. We are now down 2-3 standard deviations, and many companies [have] great fundamentals. Bullion down, silver down, I think we're due, mathematically, for a great rally," he said.