Frank Holmes, CEO of U.S. Global Investors, predicts gold could reach 6,000 USD/ounce and Bitcoin could rise to 120,000 – 150,000 USD due to trade policy.
Frank Holmes, Executive Director and Investment Director of U.S. Global Investors in San Antonio, recently made a bold forecast about gold and Bitcoin prices in an interview with Kitco News this week. According to Holmes, gold could rise to 6,000 USD per ounce in Donald Trump's second term, mainly due to the expected tough trade policy that would weaken the USD.
"When I look at the global M2 growth rate, especially among the top 10 countries in the G20, I believe gold should reach 6,000 USD during the President's term," Holmes reiterated a forecast he made earlier this year.
The veteran fund manager links this prospect to the trade policy that he believes could cause the USD to drop by 25%, corresponding corresponding to the potential tax that the U.S. President is proposing. weak USD typically has a supportive impact on commodity prices denominated in USD, such as gold.
Bitcoin could reach 250,000 USD in the long term
Besides gold, Holmes also made a positive forecast about Bitcoin's prospects. He shared that when Bitcoin surpasses the 97,000 USD threshold - considered an oversupply zone - the price could move towards 120,000-150,000 USD per BTC.
"Bitcoin rising to 250,000 USD is entirely feasible with greater acceptance, due to its real security and limited supply of 21 million coins," Holmes emphasized.
He pointed out large Capital flows, such as nearly 1 billion USD in a day into spot Bitcoin ETFs this month and increasing interest from state pension funds in the U.S., as signs that this digital asset is increasingly being accepted by mainstream asset allocators.
According to Holmes, Bitcoin's limited limitation supply, along with access through ETETF products, could create supply scarcity pressure as institutions rush into this market.
Despite being optimistic about digital assets, Holmes still affirms that gold is an irreplaceable element in investment portfolios. He supports the "10% gold rule" principle and notes that gold and Bitcoin complement other tangible insurance Bitcoin provides mobility in in the digital digital economy economy.
