Ron Paul: 50% Increase in Gold Price Wouldn’t Be a Shock
Last week, Ron Paul appeared on CNBC’s Futures Now and said he wouldn’t be surprise if the stock market crashes and the price of gold soars in the near future.
If our markets are down 25% and gold is up 50%, it wouldn’t be a total shock to me.”
The former congressman and presidential candidate said uncertainty is the rule of the day and that’s giving the market the jitters.
I think the markets are very nervous for good reason. They don’t know what to expect, and it’s unpredictable what the Fed will do. It’s also unpredictable how the markets will react. But I think if the signs are the economy is weakening even more so – and I don’t accept this idea that employment is magnificent and perfect and will last forever – so, I think if they raise rates again, it mighty be another factor. But right now it looks like some of those markets are a little shaky already.”
Paul pointed out that central planners are really incapable of knowing what to do. That means we should be wary of whatever actions they may decide to take.
I think it’s a very precarious market, and the Fed better be very careful. And since they are incapable of knowing what to do, I don’t expect much good to come out of anything they do. They cannot anticipate. They haven’t been right on most of their projections and their planning. And so, I’m not thinking that the bubble atmosphere and the wonderful things going on on Wall Street will last forever. I think it’s coming to an end.”
Paul said all of the optimism and this idea that we’ve entered a “new era” is misplaced. Economic rules don’t suddenly change.
People have been convinced everything is wonderful right now, and that stocks are going to go up forever. It’s a new era. I don’t happen to buy this. I think the old rules always exist and there’s to much malinvestment. The adjustment will have to come.”
Paul echoed many of the themes Peter Schiff hit on in a recent interview at the International Metal Writers Conference. Peter also predicted an upcoming crash and good things for the future of gold.
If people just understood how good the news is for gold! But I think once people start figuring out, the price of gold is going to start to rise in $50 to $100 increments. But, before that happens, you just want to take advantage of his lull in the storm. We’re in the eye of an economic hurricane right now. People think that 2008 was the end of it – that was when we entered the storm. Now we’re in the eye. We’re coming to the rest of the storm shortly. So, for now, it’s just a good time to buy gold while there’s so much complacency.”
TLB recommends a check-in with Peter Schiff at schiffgold.com for more about the world of finance and investing.