Mining Stocks to Have Tough Start in 2016; Worst Is Yet to Come – CEO

KITCO NEWS -- Next year’s outlook for mining stocks is simply grim, this according to Frank Holmes, CEO of U.S. Global Investors, a firm specialized in global investments. In this special edition of the Kitco Gold Report, Holmes discusses his outlook for gold and the mining sector. The usually optimistic Holmes, said he thinks this might be the worst year for mining stocks. ‘I think that we are going to see the worst write-offs -- that will all happen in the first quarter of 2016 and that will be an inflection point for the gold stocks, ‘ he said. When asked what would be the single most important factor investors should be eyeing next year, he bluntly said, ‘geopolitics.’ ‘Russia having a battle with Turkey; that’s a big risk,’ he said. Reflecting on the past year, Holmes said that despite the ‘down days,’ gold has held up well as a currency. Holmes also noted that he was also impressed by the consumption of gold and silver that took place in North America. ‘Looking to next year, I think the big opportunity will be sentiment and improving gold consumption in China,’ he said.