CEO of U.S. Global Investor Says ‘Underinvestment Theme’ Opportunity Presenting Itself in Gold and Silver Markets
U.S. Global Investor CEO Frank Holmes says gold and silver are still underowned despite the parabolic runs in precious metals.
In a new note to investors, Holmes says that in the short term, gold and silver look overbought, and are most likely due for some type of technical correction before making any significant new highs.
However, the billionaire also says that precious metals are “structurally underinvested” and deserve another look from investors.
“I see a lot of potential opportunity in the underinvestment theme.
We’re living in a time of extraordinary capital concentration. On one end of the spectrum, trillions are pouring into AI platforms and a handful of megacap stocks. On the other, gold and silver, through breaking records, remain afterthoughts in most portfolios.
Which side do you think offers greater margin of safety today?
Older investors in particular should pay attention. Many no doubt remember the dotcom crash. Even Amazon—today, the world’s fifth-largest company by market capitalization—plunged more than 90% from peak (December 1999) to trough (October 2001). Over the same period, gold gained about 5%—nothing to write home about, but it certainly helped stem the losses elsewhere.
I’m not suggesting you sell your Mag 7 stocks. Just don’t ignore the tried-and-true assets that have helped empires and households alike preserve their wealth for thousands of years.”
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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