Oil Shock Sends Yields Higher And Gold Lower

Frank Holmes4.51K FollowersFollow5ShareSavePlay(6min)CommentsSummaryGold has underperformed despite the Middle East conflict due to surging oil prices, higher yields, and a stronger U.S. dollar.Oil supply disruptions, especially in diesel, are fueling inflation risks and raising the specter of stagflation.Rising U.S. debt and fiscal pressures further support the long-term bullish case for gold as a safe haven.I recommend a 10% portfolio allocation to gold, split between physical bullion and high-quality mining stocks, with regular rebalancing. FeelPic/iStock via Getty Images When geopolitical tensions flare up, the natural assumption is that gold should immediately surge. War breaks out, markets panic… and the metal rallies as investors rush to safety. That’s historically been the case, yet over theThis article was written byFrank Holmes4.51K FollowersFollowFrank Holmes is a Canadian-American investor, venture capitalist and philanthropist. He is CEO and chief investment officer of U.S. Global Investors, a publicly traded investment company based in San Antonio, TX, that oversees more than $4 billion in assets (Nasdaq: GROW). He is known for his expertise in gold and precious metals and launching unique investment products. Holmes also serves as executive chairman of HIVE Blockchain Technologies, the first publicly traded cryptocurrency mining company (TSX.V: HIVE).Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.