KITCO NEWS — Despite gold’s drop to a two-week low Wednesday, US Global CEO Frank Holmes says that the metal may be ‘on sale.’ The yellow metal is looking to end the third quarter down roughly 5%, which would mark its second consecutive lower quarterly close. December Comex gold futures were last quoted down 1% at $1,115.50 an ounce. ‘According to Holmes, gold remains ‘one of the strongest assets’ and has managed to be ‘quite resilient compared to so many other currencies.’ He also chimed in on IMF head Christine Lagarde’s recent bearish comments on commodities, as well as concerns surrounding the world’s largest gold-consuming nation. ‘What’s important about China is that the government continues to buy [gold] and continues to report the buying for more transparency,’ he noted. ‘I also think it’s really important [to note ] the US mint’s commentary that gold consumption is rising,’ he added. On the mining front, Holmes shared his thoughts on Glencore’s comeback on Wednesday as the company stock closed 14% higher after hitting an all-time low Monday. Holmes said the billion-dollar company is considered the ‘Lehman Brothers of mining’ and it is the reason investors are concerned about the sector. ‘There are also rumours that Goldman Sachs is looking to be disruptive of [Glencore’s] empire. That would be incredibly destructive for the mining sector,’ Holmes noted.
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