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Holmes of U.S. Global funds bullish on oil

edited April 2011 in Fund Discussions
Howdy folks,

Here's Frank with the bullish case for oil from these prices onward.

"why high oil prices are likely here to stay" - Frank Holmes

The question was recently asked if gold was a buy at $1500. Bevan makes a more eloquent arguement than I, but in my case, I would suggest that with any speculative play, scale in your purchase. For example, if you would like to have $10K in gold, buy $2500 now and watch it for a week or so. If it goes up, add another $2500. If it stays flat, hold pat and if it drops more than 10% sell. Never add to a losing position. In this way, you can buy gold at $1500 and not be terribly concerned.

As for gold, right now it's at 1505, silver 45.35, platinum 1804 and palladium 764. The gold/XAU ratio is still high at 6.76 but the gold/silver ratio is down to 33.19. The XAU closed at 222.78 +2.31. Oh, and the US dollar index closed at 74.14.

Bevan makes a bullish case for gold and silver.

and so it goes,




  • Howdy,

    Just found this article by Sprott on why silver is still the place to be and that the g/s ratio may got to single digits.


  • hello
    holmes sounds like roger's cousin or twin brother, he has been bangin' on the same songs for the past 7-8 yrs [oil, gold, energy, china, over-world population, food, wheat, commodities!!!... etc...]
  • And for the most part he has been spot on. He does a very good job of outlining the seasonality of gold and oil prices, so I do think that, with current high prices for both of these, new investors should dollar cost average and not dump a lot of cash into either sector. There are probably going to be some pullbacks. Michael Cuggino from Permanent Portfolio (PRPFX) said yesterday that he would be surprised to not see some retrenchment in silver and gold from their current prices, and that it would probably be healthy, but that long-term trends favor these metals.

    U.S. Global spends a heck of a lot of time looking at macro trends, and no question the last few years have been very good to them in terms of the kinds of funds they run...emerging markets, natural resources, precious metals, global infrastructure, etc. Whose to say if and how long these global themes will continue, but these folks in San Antonio are about as insightful as any when it comes to these sectors and the historical underpinnings for them.
  • Holmes actually wrote half of a book, called "The Goldwatcher", about metals investing. Another author wrote the other half of the book.
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