Diwali sales dire, but middle-class will save gold demand says Frank Holmes

By Kitco News / October 25, 2019 / www.kitco.com / Article Link

Oct 27, 2019 Guest(s): Frank Holmes CEO, U.S. Global Investors

Investors shouldn't pay much attention to short-term negative headlines highlighting weak gold sales during India's Diwali festival, said Frank Holmes, CEO and chief investment officer of U.S. Global Investors.In an interview with Kitco News, on the sidelines of the Silver and Gold Summit in San Francisco, Holmes said that despite dire headlines, gold demand in India and China is still healthy. He added that investors should pay more attention to the long-term trend of the growing middle-class in the two biggest gold markets in the world."The cultural affinity for the consumption gold is so much for than we can truly appreciate," he said. "The rising GDP per capita is the strongest correlation to increasing consumption."The combined gold demand from India and China represents 40% of the global market, Holmes said.

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