Donald Trump, the Republican frontrunner and real estate billionaire mogul, spoke with Fox Business Network this week and noted that he used to like gold but now he doesn’t buy the precious metal anymore. Trump noted that the fiat monetary system is “here for keeps” so purchasing the yellow metal may seem superfluous.
One prominent gold supporter thinks this would be an opportune time to buy then.
Speaking in an interview with the same news network, Ron Paul, former Texas Republican Congressman and three-time presidential candidate, explained that Trump’s paucity of interest in gold could very well be a buy signal for other goldbugs. Trump likely isn’t the only one to share these feelings. And this could certainly, says Dr. Paul, be a superb entry point for long-term investment in gold.
“I would think that people would start thinking that someone who had liked gold and had turned against it – it might be a good buy signal. You know more sellers! We’ll wait and see. I don’t think about these daily changes [in prices]. I think about what happened in 1933. When you turned in an ounce of gold, you got 20 Federal Reserve notes that are worth two Federal Reserve notes now,” said Paul.
“If you kept your gold and turned it in today, you would get 1,170 Federal Reserve notes now! That’s what counts. The gold standard hasn’t ended. The people vote for gold all the time. Governments always destroy paper money and they are on the verge of doing it again.”
When Stuart Varney alluded to the lack of inflation, Paul noted that if you adhere to Austrian economics then the simple premise of expanding the money supply and printing dollars is inflation in itself. Moreover, Paul presented the case that gold prices will go up even when inflation seems low.
According to the bestselling author of “End the Fed,” Paul states that government-released economic inflation figures is artificially low, while inflation tends to be submerged into higher stock market prices. Have you looked at stock prices these days?
“I think it’s not right to say there’s no inflation. If you adhere to Austrian economics, just an increase in the money supply and monetary base is inflation. What it does is sometimes it pushes up commodity prices and sometimes consumer price indices, which are rigged by the government. But at other times they go into the stock market,” added Paul. “You, just a few minutes ago, reported horrendous inflation—stocks went up 300 yesterday, 200 today.”
He concluded that the entire purpose of central banking is to push up stock prices and “make people feel better.”
At the time of this writing, gold is trading at just under $1,200.
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