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