Barron’s Jim McTague recently wrote an article highlighting GOP presidential contender Ron Paul’s investing strategy. Not surprisingly, the Texas Congressman has whipped the markets with his stock picks, which consist primarily of buying precious metals miners. The author of the Barron’s piece, hilariously, contends that Paul follows a “stopped clock” investment strategy which “finally seems to be paying off.” While he certainly is a long-term investor who rarely buys or sells, the idea that Paul’s strategy is all of a sudden paying off is ridiculous.
The fact is that Representative Paul has predicted nearly all of the major economic developments in recent years, and as such, has killed the major market averages with his approach. Is Jim McTague aware that gold has been in a bull market for the last 10 years and that Ron Paul predicted the housing collapse, the plunging dollar, and most obviously, the rise of precious metals?
In his most recent financial disclosure, Paul had between $1.6 million to $3.5 million in gold mining stocks. He also had stakes in three bear market funds, which profit from declining stock prices. The GOP candidate has held positions in major gold miners such as Goldcorp, Agnico Eagle Mines, and Barrick Gold since 1994. He also owned significant stakes in silver miners such as Mag Silver, Pan American Silver and Silver Wheaton.