Gold's Rise Dependent On How Low US Dollar Will Go: Ron Paul
Recently by Ron Paul: Demagoguing the Mosque
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.
September 14, 2010
Dr. Ron Paul is a Republican member of Congress from Texas.
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