Gold's Rise Dependent On How Low US Dollar Will Go: Ron Paul

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Gold will continue
its rise since the US dollar could potentially be defaulted on completely,
said U.S. Rep. Ron Paul, R-Tex., a keynote speaker at the Kitco
Metals eConference Sunday.

During the
question-and-answer period, the congressman was asked where gold
was headed, “Well it depends how low you expect the dollar
to go,” he said.

Most likely
the Federal Reserve will eventually stop the dollar from sinking
and save it, “but if they keep doing what they are doing it
is virtually impossible to predict [where gold is headed],”
Paul said. “Under today’s circumstance I think gold will continue
to go up in the thousands of dollars in my best estimation,”
Paul said.

Paul spoke
during the inaugural Kitco Metals eConference that began Sunday
Sept. 12 and concludes Monday Sept. 13; the entire conference takes
place online.

The congressman
said that when he thinks of a position in gold, he thinks ownership
of the physical metal. “I like for people to hold their gold
as an insurance policy and not so much as an investment,” he
said.

He said that
central bankers watch gold carefully and might be keeping prices
lower. “They know high gold prices are a vote against the job
they are doing and I believe they are very much in the business
of making sure gold prices are lower. They kept [gold] under US$35
for a long time and then they had to throw in the towel,” he
said.

As for silver,
Paul said that the explosion in price of this market has been anticipated
for quite some time. While before he was doubtful, Paul said it
now seems silver, currently sitting at $20 an ounce, might be poised
to take off.

“The atmosphere
today is so much different than when people tried to corner the
silver market in the 1970s, $20 silver today looks to me as being
very solid,” he said.

Paul said he
is having a hard time figuring out which is a better investment,
silver or gold. “If I had to predict what metal would be better
in two to three years time — I think silver might do somewhat
better,” he added.

Proposed
Gold Audit, Hard Sell

In a pre-conference
interview
with Kitco News, Paul dropped the news that he will unveil a bill
that would audit US gold reserves.

However, during
the eConference Paul said his proposed bill will have difficulty
passing. The bill does not have an official name yet but will be
unveiled at the start of the new US Congress said Paul in the earlier
interview with Kitco News.

“I hope
we will have success with getting co-sponsors on this. There should
be no reason in the world that a single person in this country or
a single member of congress shouldn’t say ‘transparency of
government is good and we ought to know how much gold is there,
we might need it someday,’” he said.

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the rest of the article


See the Ron Paul File

September
14, 2010

Dr. Ron
Paul is a Republican member of Congress from Texas.

© 2010
Kitco
News

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