Former congressman says that precious metals will literally become priceless.
Appearing on CNBC yesterday, former Congressman Ron Paul warned that if the US continues on its current course, the dollar will collapse, and gold will literally be priceless.
“Eventually, if we’re not carefully, it will go to infinity, because the dollar will collapse totally,” Paul said on CNBC.com’s Futures Now.
“As long as we have excessive spending, and excessive computerized money, we are going to see gold go up,” Paul urged, noting that as the value of the dollar is destroyed, everything measured against dollars will increase in value.
Paul added that recent drops in gold prices do not factor into the long term outlook.
“Markets do these types of things—they go up sharply, and sometimes they take a rest,” Paul said. “I was never very good on short term, whether it’s the stock market, or whatever.”
“If you look at the record of the value of the dollar since the Fed’s been in existence, we have about a 2-cent dollar. And gold used to be $20 an ounce. So I’d say the record is rather clear on the side of commodity money.” Paul said.
“Six thousand years of history shows that gold always retains value,” Paul added, “and paper always self-destructs.”
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