Ron Paul Loves Gold: His Portfolio is a Non-Diversified Mess

Well it is always fun to see the portfolios of various powerful political figures and laugh heartily at how poor their allocation is. But Ron Paul is just hilariously bad.

Paul's investment portfolio is dedicated almost solely to hard assets, with 64 percent in gold and silver miners, 21 percent in real estate and 15 percent in cash, according to an analysis from the StreetAuthority blog.

The other 1 percent? An allocation to stocks, but on the short side in a bet against the equity markets.
(Read more: Why Detroit is good for gold: Ron Paul )

His top five stock allocations are to Goldcorp (Toronto Stock Exchange: G-CA), Barrick Gold (Toronto Stock Exchange: ABX-CA), Newmont Mining (NEM), Silver Wheaton (Toronto Stock Exchange: SLW-CA) and Kinross Gold (Toronto Stock Exchange: K-CA). 

What is messed up is that 64% is in miners who traditionally lag the actual metal itself. If he had 64% in GLD or something then at least he doesn't have to face the vagaries of the miners themselves. If he just had that money in GLD he would have lost only 13% for the year. Instead he gets to eat a 30% loss. What is worse is that the lower gold goes the harder it is on the miners. They have massive capital requirements and if they barely break-even mining the gold they have in reserve they will stop doing it to stabilize prices.