angelatc
10-06-2008, 12:15 PM
(The article got my attention because Senator Kyl is in it. :) )
<><><><><><><><><><><><>
FROM:
http://www.rollcall.com/issues/54_42/news/28942-1.html
The Man With the Golden Portfolio
Paul, Others Bank on Precious Metals
By Paul Singer and I-Ching Ng
Roll Call Staff
October 1, 2008
As the Wall Street bailout bill went down to defeat and
the stock market nosedived on Monday, it must have been
good to be Rep. Ron Paul.
The Texas Congressman and former Republican presidential
candidate is heavily invested in gold mines and other
precious metals, which rose nicely as the price of gold
crested around $900 per ounce - about $200 higher than
it was a year ago.
Gold is an important concept in Paul's political
theory: He has argued forcefully against the U.S.
government's monetary policies on the grounds that
printing more money devalues the dollar. Gold, on the
other hand, remains an undilutable currency. There is
only so much of it.
Paul has previously introduced legislation to eliminate
paper "legal tender" money and return to "constitutional
money" - generally considered gold and silver.
And Paul apparently puts his money where his mouth is.
According to his most recent financial disclosure form,
at the end of last year Paul held more than $1 million
in various gold mining and other precious metal stocks.
Over the past few weeks, these stocks have risen
dramatically. For instance, Goldcorp Inc., a Canadian
mining company, was trading as low as $25 on Sept. 10
but as high as $34 on Monday. Paul reported that he
held $500,000 to $1 million in Goldcorp stock last year.
Gold mining stock, like the price of gold itself, is
fairly volatile. In July, Goldcorp stock was as high as
$47 per share. But the stock has more than doubled in
value since 2005, and in years prior, it traded at less
than $15 per share. Paul has reported owning the stock
each year since he came to Congress in 1996.
Rachel Mills, a spokeswoman for Paul, said that "the
positive thing about gold is it's a store of wealth
and it retains its purchasing power over time." Mills
said that she could not speak for the Congressman about
his investments but that she was speaking for "those
who invest in gold under his philosophy."
While Paul's portfolio stands out for its almost
exclusive reliance on gold and precious metals, he is
not the only Member with money in the gold markets,
and a fondness for fine metals appears to cross party
lines.
Several Members - including Sen. Jon Kyl (R-Ariz) and
Rep. Steve Cohen (D-Tenn.) - are invested in Barrick
Gold Corp., a major gold-mining operation. Rep.
Tom Udall (D-N.M.) reported holding $15,000 to $50,000
worth of Evergreen Precious Metals.
Rep. Jay Inslee (D-Wash.) reported owning $15,000 to
$50,000 worth of StreetTracks, a gold fund that buys
and sells bullion. Rep. Kirsten Gillibrand (D-N.Y.)
reported owning $1,000 to $15,000 worth of the same
fund, which was trading Tuesday at about $85, the
same price it fetched at the beginning of the year,
after reaching as high as $100 in March and as low as
$73 earlier this month.
Sam Sudame, chief investment officer of the Schultz
Financial Group Inc. in Reno, Nev., said "if there
is a lot of fear in the markets, the price of gold
will go up because it is a flight to safety."
Sudame pointed out that owning stock in gold-mining
companies is not as safe as gold because mining faces
the same economic challenges as the rest of the
economy, such as rising fuel prices and high labor
costs. These stocks will generally rise with the price
of gold, Sudame said, but "as a pure risk avoidance
strategy, the bullion is better because the bullion
will be sitting in a vault somewhere."
Jeff Broadhurst, of Broadhurst Financial Advisors
Inc. near Philadelphia, said, "I do not invest in or
recommend commodities [such as gold] because the
expected return for a commodity is zero." That is, a
block of gold will remain a block of gold, and its
value will go up and down with supply and demand, but
it won't create more gold, whereas an investment in
a company allows the company to produce more value
from the dollars that were invested.
Of course, all metals are not created equal, so
while gold has risen briskly over the past few
weeks, other metals have not fared as well in the
face of the economic slowdown.
So pity poor Sen. Joe Lieberman (ID-Conn.), who
reported holding $100,000 to $250,000 worth of stock
in Commercial Metals Co. at the end of December, a
stock that was selling for about $29 at the time. By
Tuesday, stock in the steel manufacturing and
recycling company was trading at about $18 per share,
meaning Lieberman's investment has lost more than
$35,000 in value - assuming he hasn't sold it since
December.
Of course, for the faint of heart, there are still
the more traditional investment strategies. Rep.
Marilyn Musgrave (R-Colo.) reported that her husband
held $50,000 to $100,000 worth of "precious
metals/coins," Rep. Jim Matheson (D-Utah) reported a
coin collection worth $1,000 to $15,000, and Rep. Jim
Sensenbrenner (R-Wis.) reported a stamp collection
worth about $100,000.
<><><><><><><><><><><><>
FROM:
http://www.rollcall.com/issues/54_42/news/28942-1.html
The Man With the Golden Portfolio
Paul, Others Bank on Precious Metals
By Paul Singer and I-Ching Ng
Roll Call Staff
October 1, 2008
As the Wall Street bailout bill went down to defeat and
the stock market nosedived on Monday, it must have been
good to be Rep. Ron Paul.
The Texas Congressman and former Republican presidential
candidate is heavily invested in gold mines and other
precious metals, which rose nicely as the price of gold
crested around $900 per ounce - about $200 higher than
it was a year ago.
Gold is an important concept in Paul's political
theory: He has argued forcefully against the U.S.
government's monetary policies on the grounds that
printing more money devalues the dollar. Gold, on the
other hand, remains an undilutable currency. There is
only so much of it.
Paul has previously introduced legislation to eliminate
paper "legal tender" money and return to "constitutional
money" - generally considered gold and silver.
And Paul apparently puts his money where his mouth is.
According to his most recent financial disclosure form,
at the end of last year Paul held more than $1 million
in various gold mining and other precious metal stocks.
Over the past few weeks, these stocks have risen
dramatically. For instance, Goldcorp Inc., a Canadian
mining company, was trading as low as $25 on Sept. 10
but as high as $34 on Monday. Paul reported that he
held $500,000 to $1 million in Goldcorp stock last year.
Gold mining stock, like the price of gold itself, is
fairly volatile. In July, Goldcorp stock was as high as
$47 per share. But the stock has more than doubled in
value since 2005, and in years prior, it traded at less
than $15 per share. Paul has reported owning the stock
each year since he came to Congress in 1996.
Rachel Mills, a spokeswoman for Paul, said that "the
positive thing about gold is it's a store of wealth
and it retains its purchasing power over time." Mills
said that she could not speak for the Congressman about
his investments but that she was speaking for "those
who invest in gold under his philosophy."
While Paul's portfolio stands out for its almost
exclusive reliance on gold and precious metals, he is
not the only Member with money in the gold markets,
and a fondness for fine metals appears to cross party
lines.
Several Members - including Sen. Jon Kyl (R-Ariz) and
Rep. Steve Cohen (D-Tenn.) - are invested in Barrick
Gold Corp., a major gold-mining operation. Rep.
Tom Udall (D-N.M.) reported holding $15,000 to $50,000
worth of Evergreen Precious Metals.
Rep. Jay Inslee (D-Wash.) reported owning $15,000 to
$50,000 worth of StreetTracks, a gold fund that buys
and sells bullion. Rep. Kirsten Gillibrand (D-N.Y.)
reported owning $1,000 to $15,000 worth of the same
fund, which was trading Tuesday at about $85, the
same price it fetched at the beginning of the year,
after reaching as high as $100 in March and as low as
$73 earlier this month.
Sam Sudame, chief investment officer of the Schultz
Financial Group Inc. in Reno, Nev., said "if there
is a lot of fear in the markets, the price of gold
will go up because it is a flight to safety."
Sudame pointed out that owning stock in gold-mining
companies is not as safe as gold because mining faces
the same economic challenges as the rest of the
economy, such as rising fuel prices and high labor
costs. These stocks will generally rise with the price
of gold, Sudame said, but "as a pure risk avoidance
strategy, the bullion is better because the bullion
will be sitting in a vault somewhere."
Jeff Broadhurst, of Broadhurst Financial Advisors
Inc. near Philadelphia, said, "I do not invest in or
recommend commodities [such as gold] because the
expected return for a commodity is zero." That is, a
block of gold will remain a block of gold, and its
value will go up and down with supply and demand, but
it won't create more gold, whereas an investment in
a company allows the company to produce more value
from the dollars that were invested.
Of course, all metals are not created equal, so
while gold has risen briskly over the past few
weeks, other metals have not fared as well in the
face of the economic slowdown.
So pity poor Sen. Joe Lieberman (ID-Conn.), who
reported holding $100,000 to $250,000 worth of stock
in Commercial Metals Co. at the end of December, a
stock that was selling for about $29 at the time. By
Tuesday, stock in the steel manufacturing and
recycling company was trading at about $18 per share,
meaning Lieberman's investment has lost more than
$35,000 in value - assuming he hasn't sold it since
December.
Of course, for the faint of heart, there are still
the more traditional investment strategies. Rep.
Marilyn Musgrave (R-Colo.) reported that her husband
held $50,000 to $100,000 worth of "precious
metals/coins," Rep. Jim Matheson (D-Utah) reported a
coin collection worth $1,000 to $15,000, and Rep. Jim
Sensenbrenner (R-Wis.) reported a stamp collection
worth about $100,000.