Frank Holmes, CEO of U.S. Global Investors, predicts gold could reach $6,000/ounce and Bitcoin could rise to $120,000 – $150,000 thanks to tariff policies.
Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors in San Antonio, has just made a bold forecast about the price of gold and Bitcoin in an interview with Kitco News this week. According to Holmes, gold could rise to $6,000 per ounce during Donald Trump's second term, mainly due to the anticipated strong tariff policies that will weaken the USD.
“When I observe the growth rate of global M2, especially in the group of the 10 largest G20 countries, I believe gold should reach $6,000 during President Trump's term,” Holmes reiterated his forecast he made earlier this year.
The veteran fund manager links this outlook to the tariff policies he believes could reduce the USD by about 25%, corresponding to the potential tax rate that the U.S. President is proposing. A weak USD often has a supportive impact on the prices of USD-denominated commodities like gold.
Bitcoin could reach $250,000 in the long term
In addition to gold, Holmes also provides a positive forecast for Bitcoin's outlook. He shares that when Bitcoin surpasses the $97,000 threshold – considered a surplus supply zone – the price could advance to the $120,000-$150,000 per BTC mark.
“The rise of Bitcoin to $250,000 is entirely feasible with broader acceptance, due to its true security and the limited supply of 21 million coins,” Holmes emphasized.
He points to large capital flows, such as nearly $1 billion in a single day into spot Bitcoin ETFs this month and increasing interest from state pension funds in the U.S., as signs that this digital asset is becoming increasingly accepted by mainstream asset allocators.
According to Holmes, the limited supply of Bitcoin along with access through ETF products could create supply scarcity pressure as institutions rush into this market.
Despite being optimistic about digital assets, Holmes still asserts that gold is an irreplaceable factor in an investment portfolio. He advocates the allocation principle of “the 10% gold rule” and notes that gold and Bitcoin complement each other: gold provides tangible insurance, while Bitcoin offers mobility in the digital economy.
Looking to the future, Holmes believes he is “optimistic about decentralized assets” and forecasts that the coming years will be a phase of “restructuring” shaped by geopolitics, trade rebalancing, and demographic changes among investors.
