By Myra P. Saefong
MarketWatch
Last year’s 28% plunge in gold prices didn’t shake Frank Holmes’ confidence in gold as a great portfolio diversifier because he believes it’s all part of the metal’s “normal DNA of volatility.”
As chief executive officer and chief investment officer at U.S. Global Investors, Holmes writes frequently in his blog “Frank Talk” about a variety of topics — from emerging markets, to the economy, equities, energy and natural resources. In an email interview with MarketWatch this week, he discussed gold, silver, copper and other metals.
Gold’s prices go up or down, on average, about 15% [a year] — and even a swing of 30% in either direction is normal, he said.
Holmes also discussed the “Love Trade and the Fear Trade” that drive gold as well as the impact of the end of the global silver price benchmark — the London silver fix.