Thursday, August 25, 2011

Ron Paul: Investing Genius (and why he likes silver now)

John Carney points to this Peter Schiff comment on Dr. Paul's portfolio:
Fueled by his understanding of the inflationary policies unrelentingly pushed by his colleagues in Washington, Ron wisely loaded up on gold and gold-mining stocks in the mid- to late 1990s, when those assets were regarded as the poor stepchildren of Wall Street.

Although these assets have significantly beaten the broad markets over the one- and three-year time frames used in the article, most of their phenomenal gains occurred earlier in the last decade. 
Amazingly, the average 10-year return of the 8 stocks listed in his top 10 holdings (that have 10-year track records—the two other positions have not been around that long) came in at more than 600 percent!
When I met with Dr. Paul in Reno, he told me that he thought silver had a chance to outperform gold at the present time because the price of gold is getting so high that many people won't be able to afford to buy it and that they would buy silver instead.

Dr. Paul's full portfolio, which he has to publicly disclose as a member of  Congress, is here.


  1. Would RP's portfolio still be a win if he became the POTUS and stopped the currency debasement?

  2. I guess you do not know RP too well, Anonymous. His portfolio is a road map to the American future generation. If he was like the rest of the puppets, he would be trumpeting the money printing process ad infinitem. He wins because he is honest as the day is long, being short sighted is not in him, and only want's the best for every person. Lead by example, that is why THEY fear him.

  3. ron paul has passion. he does not understand the monetary system. gold is not money. the price of gold is being drivern by fear and loose money. Qe is not money printing. It is just convential open market operations that swaps assets other that treasury bonds for bank reserves. reserves are just a number on a computer at the fed. Since we know now that banks don't just lend because they have reserves, the inflation argument is moot. Sooner or later the gold bubble will pop. Continued deflation will probably be the most likely scenario. I like ron paul but he is misguided.

  4. The fiat monetary system does not work as many videos on youtube do. The government spends by changing numbers in bank accounts. It taxes by doing the same. It borrows by selling securities which is taking the numbers that were turned up in a bank account and shifting them into a seperate account that bears interest. No printing involved. Used to be that $ was convertilbe. Gov't sold bonds to people so they would not convert their $ into gold. Now that the Gold standard is gone, why do they sell securities. To regulate the fed funds overnight interbank rate or the quantity of numbers in bank accounts. Spending first(cannot collect taxes in $ if you don't spendem" first), taxes second(just make room in the economy for what the government spent, if it didn't that is where the inflation everyone fears comes from) and it borrows the rest. Happens in that order. It's like they pour money into a glass. then they regulate the amount of money in the glass to control the economy. too much money and the glass will spll or prices will rise because money was SPENT beyond the economies ability to produce. Too little and we will have deflation or falling prices because there isn't enough money for the economy to operate and unemployment will ensue. It really doesn't operate like you think. It's not like your house.

  5. Of course his portfolio will still be a win if he's elected president. You can't have gold and silver currency without mining companies to pull the stuff out of the ground. They'll be making money hand over fist, and so will their investors.

  6. If anyone is interested here is President Obama's financial disclosure. Very heavily weighted in U. S Treasuries. It's amazing the contrast between the two disclosures.;