Exclusive Interview: Gold's Volatility, Part of Its Tradition: Former Presidential Candidate Ron Paul

Monday May 27, 2013 2:55 PM

New York (Kitco News) - Gold's recent ups and downs are simply keeping with its tradition of being volatile, said former U.S. congressman Dr. Ron Paul in an exclusive Interview with Kitco News.

"It is up and down, and it has been doing that a lot lately," Paul said. "If (investors) are in gold for a short time to make a quick killing that ought to make them very nervous," he said of gold's recent correction in April. Prices plunged 14 percent in the two sessions to April 15, the most since 1983, and hit a low of $1,321.95 an ounce on April 16.

The excitement and the concern surrounding gold is greater than the need to be so excited and concerned he said on the sidelines of the recent Metals and Minerals Conference in New York.

Paul said that historically there have been high periods of volatility but it is important to look past these short-term corrections. Looking back, Paul reflected that in the 1970s gold went up to almost $200 an ounce then plummeted back down to close to $100 an ounce two years later.

"Everybody thought the world had ended for gold, "he said. Paul added these should have been seen as simply corrections in a roaring bull market.

Soothing nervous investors Paul had this advice to offer, "I was told one time that you shouldn't be concentrating so much on the price of gold. What you should ask is, 'how many ounces of gold do you own?'"

Paul said investors should be prepared for the scenario of the US dollar being in "bad shape" - one needs to see if they have enough gold to cover themselves for that day "we all expect will come," he said.

On three occasions, Paul ran for the presidency of the United States: as the Libertarian Party candidate in 1988 and as a candidate in the Republican primaries in2008 and 2012. This past January, however he retired from his 23 years of service with Congress.

As a politician, rather than focusing on gold, Paul says he has spent most of his time watching the dollar.

Originally posted here:
Exclusive Interview: Gold's Volatility, Part of Its Tradition: Former Presidential Candidate Ron Paul