Tuesday, May 28, 2013

Ron Paul on Gold's Recent Downturn

“It is up and down, and it has been doing that a lot lately, Ron Paul said during an interview with Kitco News at the Metals and Minerals Investment Conference in New York . “If (investors) are in gold for a short time to make a quick killing that ought to make them very nervous.”

DR. Paul said that historically there have been high periods of volatility but it is important to look past these short-term corrections. Looking back, Paul reflected that in the 1970s gold went up to almost $200 an ounce then plummeted back down to close to $100 an ounce two years later.

“Everybody thought the world had ended for gold, “he said. Paul added these should have been seen as simply corrections in a roaring bull market.

“I was told one time that you shouldn’t be concentrating so much on the price of gold. What you should ask is, ‘how many ounces of gold do you own?’”

Paul said investors should be prepared for the scenario of the US dollar being in “bad shape” – one needs to see if they have enough gold to cover themselves for that day “we all expect will come,” he said.

As for an end to quantitative easing, Paul said the Federal Reserve has no choice but to continue printing money. “They’re trapped,” he said.

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