Gold Drops 4% as Lyn Alden Remains Bullish on its Long-Term Prospects

Lyn Alden, founder of Lyn Alden Investment Strategy and author of 'Broken Money,' isn't panicking about gold's recent price drop. In fact, she thinks it's a good time to hold onto physical gold.

Alden believes the bigger story is in Washington, where U.S. debt has surpassed 100% of GDP. She argues that rate hikes can add more to the deficit than they take out of lending, and with neither party willing to cut spending, the Fed is stuck fighting inflation its tools weren't built for.

The Fed raised rates by a quarter point on Sept. 16, but Alden isn't convinced it'll work. She thinks this is 'fiscal-driven' inflation, combined with disruption from the war, and that rate hikes won't be enough to tackle these issues.