Everyone’s Shorting Gold; Due For A Rally – Holmes

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Gold Game Film is back and Frank Holmes shares his thoughts on the market following the dip in prices late last week. “Bullion was off only 6%,” he says. “[But] it was the gold stocks – junior gold stocks – that just got beaten down.” Holmes notes that historically when gold prices decline, gold stocks typically decline twice as much; however, this time, they decreased by 24%. He thinks that investors really need to look at the U.S. dollar to understand what is happening to gold. “Let’s talk about what was a big factor for gold in September…it’s the incredible run in the dollar,” he says. “I think it’s very important to look at these currency moves.” What could this price decline mean for the mining industry? Holmes says continued downside pressure will lead to shrinking supplies out of the U.S., Latin America and even Africa. But, do not fret…there still may be some opportunities in gold these days! Tune in now to find out what Holmes thinks may be gold’s touchdown pass. Kitco News, October 6, 2014.

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