Investors, especially millennials, have been more interested in Bitcoin than gold lately, as Bitcoin is limited to 21 million tokens and gold investors are selling their gold holdings. Frank Holmes, CEO of US Global Investors, says that Bitcoin investors also hold them. Earlier this year, Bitcoin crossed the $1 trillion market cap. In market jargon, Bitcoin is often referred to as ‘digital gold’. Highlights from an interview the investment expert gave at the Denver Gold Forum Cryptocoin. com for our readers.

“To make gold more attractive, we need to find a way to tell millennials our story”

Frank Holmes, who is also the Chief Investment Officer of US Global Investors, begins his interview with the following explanations:

Investors buy Bitcoin because it is decentralized. It is also privately owned and portable. The same goes for gold. The real question is, where do they get the gold from? Gold investors do not hold their gold. MicroStrategy emerges and raises the stock price sixfold. Michael Saylor steps in and says he can’t grow this high-end business any faster than printing funds. He will go back and use Bitcoin as a proxy.

US Global Investors CEO stresses that gold investors should reposition their stories and stop selling their gold if they have free cash flows.

What happened in our world when it comes to gold, these stocks are much more quantitatively oriented and much more robust in benchmark analysis. We need to find a way to tell our story to millennials to make gold more appealing, more broadly.

Frank Holmes advises investors to hold and not sell their gold investments

Both Bitcoin and the precious metal have fluctuated between gains and losses this year. Frank Holmes explains his approach to Bitcoin and precious metal investments as follows:

Millennials buy all this money printing, but they bet on Bitcoin. What will resonate with the investor is that the gold producer believes that the money printed there will get a price. And the price of gold and silver will go up because you actually hold it, but that’s not what happened.

Frank Holmes advises investors to hold and not sell their gold investments, adding, “If you have a large free cash flow and you truly believe in your product like gold or Bitcoin, then you should hold on to it.” The CEO of US Global Investors continues his statement as follows:

If I hold my gold like we do for the high Blockchain, we hold our cryptocurrencies too. Not only is our revenue increasing as Bitcoin and Etherum rise, our inventory grows from $5 million to $130 million. This is a major balance sheet asset.

Mergers and acquisitions in the gold industry

Frank Holmes also covers the series of mergers and acquisitions activities in the gold industry. The investment expert makes the following assessment on the subject:

There was a huge dilution among metal miners in 2006-2007. The golden fiadollar yellow would have departed from that point. But those gold stocks did not exist. Then we had another rally in 2011. Again, there were these crazy merges that didn’t stack up. I think they’re saving more today. Much smarter mergers and acquisitions are happening today. The main difference between today and 2007 is dilution.

US Global Investors manages the Jets ETF, a 52-share basket in the air travel industry. Jets has nearly $4 billion in assets under management, which grew significantly during the pandemic. Frank Holmes says he has a very positive outlook on the airline industry and that the recession we’re seeing due to Covid is only temporary:

Our Jets ETF grew from 40,000 shares a day to 8 million last year. It went from $40 million to $4 billion triggered by major corporate and retail based on what they saw. Investors did their own research on the internet, which is decentralized information. Then typically, after each crisis, airlines dropped 70 percent and then increased 120 percent. Investors did their own research and guess what? Warren Buffet was wrong and they were right!

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Michael Lewis


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