(Kitco News) - Gold prices should respond positively to mounting global debt, with firms like Goldman Sachs even underestimating their bullish stance of $1,575 an ounce in three months on the yellow metal, said Frank Holmes, CEO of U.S. Global Investors.
"They're always going to be understated, and clearly that means that it could easily go another $150," Holmes told Kitco News.
"I think it's more important to look at other people that really understand gold as an asset class," he added.
On monetary policies around the world, Holmes said that zero interest rates may return globally as all eyes are on the European economy
"Europe is such a basket case of taxation and regulation that they can't get their economy going so they've gone to zero interest rates, in fact, Denmark is paying you to take out a mortgage," he said.
On the protests in Hong Kong, Holmes said that the rest of the world is silently siding with the U.S.
"I think that China is quite embarrassed by this thing that's taking place in Hong Kong. It's a great test of the moral character of China," he said.
More from Kitco News: Anthony Scaramucci Says He Could Care Less What the GOP Thinks
Jim Cramer: All That Glitters Is Cramer: Jim Cramer Tackles Gold, Cannabis and the Markets
Premium Pick: Markets Reverse and Surge on China News
Ask the Expert: The Scariest Thing All Investors Have to Face
Ready to Retire: The Biggest Threat to Your Retirement? Check Your Basement
Dog Days of Summer: Why Investors May Be Seeing the End of the Dog Days of Summer
Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud
Catch Up: Today's Top News Videos Below
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.