The yellow metal has remained quiet so far this year – bitcoin is grabbing the business headlines these days. It is trading at around $1,250 and not a lot of movement is occurring. But should goldbugs focus on gold’s short-term or long-term prospects? One former presidential candidate says he sees it over a 100-year period.
Former Texas Republican Congressman and three-time presidential candidate Ron Paul spoke to CNBC’s “Talking Numbers” Tuesday to discuss precious metals. Essentially, he sees last year’s decline in the price of gold simply a bump in the road and it will not hinder its bullish run or the inevitable rise of gold’s value.
“I don’t see gold so much in short-term because I see it in over a 100-year period,” said Paul. “Long-term, it will always go up so long as we have a [Federal Reserve] printing money. But, on the short-term, the traders have a lot to say about this. A correction like we just had last year – one year out of 13 – that’s not a big correction. That doesn’t destroy a so-called bull market.”
Eventually, says Paul, investors will head to gold due to growing national debts, fear in the overall economy and markets and continued stimulus from both the Fed and the federal government. Also, gold serves as a practical policy function.
“I think they’re going to move to gold. Gold is going to be the safe haven which it’s been for 6,000 years,” stated Paul. “The most important thing about gold is it restrains the temptation of those who think they know best in what interest rates should be and what the money supply should be.”
At the time of this writing, gold is trading at $1,250, while silver has dropped to less than $20.
To catch up on the latest Dr. Paul news, you can watch the State of the Union with Ron Paul and fellow libertarians Tuesday at 6 p.m. on the Ron Paul Channel.