Ron Paul: Gold Standard and Gold and Silver Investments

Ron Paul has been a long-time advocate of gold standard and has been making gold and silver investments personally. Here is an article from Benzinga (by Scott Rubin) discussing Ron Paul’s views/track record on gold standard and gold and silver investments:

Goldcorp Inc. (USA) (NYSE:GG)

Barron’s Jim McTague recently wrote an article highlighting GOP presidential contender Ron Paul’s investing strategy. Not surprisingly, the Texas Congressman has whipped the markets with his stock picks, which consist primarily of buying precious metals miners.

The author of the Barron’s piece, hilariously, contends that Paul follows a “stopped clock” investment strategy which “finally seems to be paying off.” While he certainly is a long-term investor who rarely buys or sells, the idea that Paul’s strategy is all of a sudden paying off is ridiculous.

The fact is that Representative Ron Paul has predicted nearly all of the major economic developments in recent years, and as such, has killed the major market averages with his approach. Is Jim McTague aware that gold has been in a bull market for the last 10 years and that Ron Paul predicted the housing collapse, the plunging dollar, and most obviously, the rise of precious metals?

In his most recent financial disclosure, Ron Paul had between $1.6 million to $3.5 million in gold mining stocks. He also had stakes in three bear market funds, which profit from declining stock prices.

The GOP candidate has held positions in major gold miners such as Goldcorp (NYSE: GG), Agnico Eagle Mines (NYSE: AEM) and Barrick Gold (NYSE: ABX) since 1994. He also owned significant stakes in silver miners such as Mag Silver (NYSE: MAG), Pan American Silver (NASDAQ: PAAS) and Silver Wheaton (NYSE: SLW).

According to the author, Ron Paul’s portfolio is “is a financial planner’s nightmare,” due to his heavy exposure to precious metals. What he forgets to mention, however, is that Paul’s predictions have been prescient, and based on his track record, he would likely school just about any financial adviser on the economy and economic history.

In fact, many citizens probably wish Paul had been their financial adviser for the last 10 years, during which the S&P 500 has lost around 1.50%, including nearly 10% over the last 5 years.

Peter Schiff, writing for theStreet.com, noted earlier this week, the misleading tone of McTague’s article. Schiff wrote, “And while the reporter, Barron’s Washington bureau chief Jim McTague, grudgingly recognized how these “stopped clock” investments had made strong gains over the last few years, he glaringly under-reported the long-term success and wisdom of the congressman’s strategy.”

According to Schiff, the average 10-year returns of the 8 stocks listed in Ron Paul’s top 10 holdings (the two other stocks do not have 10-year track records) are above 600% versus a loss for the S&P of 3% over the same time period.

Nice “stopped clock” strategy, right? In reality, it suggests that not only is Ron Paul an honest and principled politician with a rock solid knowledge of economic history and theory, but he is also a master investor with a track record that would make many of the Street’s top hedge funds envious. Just don’t expect Barron’s to acknowledge it.

Related Articles on Gold Standard and Gold and Silver Investments:

Seth Klarman Bullish on Gold

Facts About Gold

Hedge Fund’s Getting Slammed by Silver’s Decline

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!