Gold price firms in holiday-thinned trade, spotlight on Fed and Trump policies
The yellow metal has gained 27% so far this year.
No matter who wins the election or even if there is a hike in interest rates, gold will still go up, says Ron Paul who was interviewed by CNBC on Friday.
Paul conceded that interest rates are probably heading up, which should dampen gold prices. Polls also point to Hillary Clinton win, which may reduce market uncertainty. But a healthy economy “will be fundamentally good for gold” over the long term, says Paul.
Paul lauded gold as the best performer over the long term. Low interest rates are also driving savers to gold.
“The laws of economics are more powerful than all the politicians and all the central bankers.”
Regarding the presidential race, Paul is not concerned if Trump prevails since he doesn’t see a “whole lot of difference between the two parties.”
“Nothing really changes no matter who wins. Governments keep growing, deficits keep growing. The Fed keeps printing more money so I don’t expect a lot to change.”
“I look at what the Fed is doing. History is on my side. When you print money and you have a fiat currency, it all becomes political; deficits are looked at as benefits. Believe me, gold prices will go up.”
Paul cautioned that the election is still up for grabs.
“People are so disgusted with the two candidates,” says Paul. “It depends upon how many people stay home.”
2 Comments
Man in Africa
That is good to keep the market ongoing
Mark Harder
Now isn’t that brilliant? Gold will go up. Silver will go up. Rare earths will go up. Oil will go up. Natural gas will go up. Copper will go up, so will lead, zinc, tantalum and potash. Probably potable water will become a monetized commodity. Pick your natural resource, and eventually it will cost more. The only factor worth debating is when.