Make Kitco Your Homepage

Gold is under-represented in portfolios; why this needs to change

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) - Although gold prices have seen a slump recently, investors should not take this is as a bearish sign and instead, consider adding more of the yellow metal to their portfolio, this according to Frank Holmes, CEO of U.S. Global Investors.

Holmes noted that gold stocks and gold bullion are currently underweighted in investors’ portfolios.

“When you look at Canada, and you look at the index and percentage of gold stocks, they’re extremely underweighted,” he said.

On the U.S. dollar, Holmes said that central bank’s printing of money may cause a shortage of the world’s largest currency.

“Pulling money out of U.S. banks has global ramifications of hurting the world. So there’s actually a shortage of dollars,” he said, adding that a shortage would cause the dollar to rise.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.