Ron Paul Reveals Why He Owns Gold
The comments below are an edited and abridged synopsis of an article by Ron Paul
The global economic system is complex, interdependent and interlinked, and the global economic system is fragile. We have seen the devastating consequences of a financial crisis and how it sweeps around the world.
Today, it’s more important than ever to guard against the contagion of the next financial crisis, the volatility of the financial markets, and the fragility in the global economic system.
Gold is the opposite of fragile. It is a solid, stable asset that has been relied on for thousands of years as a store of value, a medium of exchange and a safe-haven asset during political and economic crises.
Gold is tangible. There’s no balance sheet or profit-and-loss statement. There’s no fudging the numbers; what you see is what you get.
Paul began buying gold in the 1960s, when it just $35 an ounce. He believes that owning gold protects against inflation and the frenzied money-printing that devalues the US dollar.
There are many examples of fiat currency collapses around the world. When paper currencies are worthless, gold has always been accepted as payment. It is the one asset that has always been accepted by sellers since the beginning of civilization.
Gold is an honest asset, unlike financial instruments. When you own gold, you know exactly what you’re holding. There are no derivatives or credit default swaps to worry about, just a miniature work of art that will hold its value for generations to come.
Paul advises adding gold to your savings. He doesn’t believe the world’s gold should be in the hands of billionaires and central banks. It’s possible, even easy, to diversify your savings with real gold and silver.
Physical precious metals are a reliable store of value that will protect you against the problems that plague financial markets. It’s a form of long-term financial insurance.