Ron Paul: I Believe We Are in the Early Stages of the Third Gold Bull Market (Video)
To date, gold is up nearly 10% in 2017, but as Ron Paul pointed out in his recent Market Update video, most people aren’t paying much attention.
Because a lot of other things such as the stock market and cryptocurrencies are going up faster. Nevertheless, Paul thinks there are good reasons to believe what he calls the “third bull market” in gold has started.
We haven’t factored into the system all the spending and all the debt and all the price inflation that we have seen in recent months and in recent years. So, I think this will continue.”
As Paul pointed out, the yellow metal has hovered in a narrow range around the $1,300 mark for several months. This is typically viewed as a resistance point by technical analysts.
Someday, that resistance will be broken and then it’s going to break out and represent all the money we created after the breakdown of the monetary system and the financial system in 2008 and 2009. And we still haven’t discounted all that money sitting around. But it’s starting to come out, and it’s starting to play havoc with prices … If you look around, you can find a lot of price inflation going on. You can look at housing. You can look at bonds. You can look at medical care. You can look at education. You can look at the oil prices.”
Paul also said he has a hunch that a lot of the dollars created by the Federal Reserve over the last decade have found their way into cryptocurrencies.
The capitalization of cryptocurrencies is over $300 billion. Well, that had to be bid up somewhere. There had to be somebody seeing it. There could be the independent innovation of all the things going on with cryptocurrencies, but there also has to be dollars bidding it up. So, you could have a cryptocurrency innovation, but not necessarily knowing what the price should be. So, if you have an artificially large amount of cash chasing certain goods, it just may be that under certain circumstances some of that money might flow into something like cryptocurrencies.”
Paul concedes that gold may not look all that exciting right now. But he believes gold entered a bull market last year.
I believe we are in the early stages of the third bull market – that I have met, witnessed and monitored throughout my life, especially getting interested way back in the 1960s … I would say that we’re definitely moving in a direction of higher prices for gold.”
Paul said people can make a lot of money trading gold, but he sees it more as a personal insurance policy.
You can be on your personal gold reserve standard if you have excessive funding, you save your gold, and that’s your backup in case things go badly for you. It’s stood well over the years.”
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