The Power of Gold

The power of gold can lead to foolish behavior. Although the price of gold is back up again that doesn't mean you should go whole hog with your portfolio.

KTRH moneyman Pat Shinn says gold is a risky investment.

"Unlike a stock or a bond gold doesn't have any cash flow; gold does not have earnings, gold does not pay interest, so literally it's impossible for anybody to say gold is cheap or gold is expensive."

Shinn says the gold price follows the Dollar's ups and downs.

"The one thing we do know is gold is priced in United States Dollars; when the United States Dollar gets stronger gold prices go lower and vice versa."

Shinn suggests, unless you're an expert investor, don't tie up much of your money in gold.

"I would certainly recommend that you have no more than 10% of your total investment assets in gold; gold is very unpredictable and gold prices can also move up and down in a very, very short period of time, very dramatically."

Gold has hit a five month high and President Trump told the Wall Street Journal “I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me.”


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