Barron's hatchet job on RP and his gold investments.

[llepard]

Sickening. More to follow in edits.

Barron's Article: Candidate of Gloom and Doom.

http://online.barrons.com/article/SB50001424052702303822904576516114289723344.html?m od=BOL_twm_fs

What a fucktard this writer is.

If the link does not work got to google and google "candidate of gloom and doom" for full article, or maybe someone can copy it an post it here. I am now shut out and they want me to subscribe. Fat chance.

[matt0611]

Wow, what a stupid article.

Turns out Ron Paul's bets were right. He actually understands the problem in our crony capitalistic / socialistic economy built on sand (artificial low interest rates and paper money infusion), so he knows how to store his wealth to protect it.

And this is somehow...a bad thing?

[llepard]

Candidate of Doom and Gloom
By JIM MCTAGUE | MORE ARTICLES BY AUTHOR


Say this for him: Ron Paul puts his money where his mouth is. Over the past 16 years, the dollar-doom-and-gloom prophet has invested heavily in gold-mining stocks. It's his hedge against what the Texas Republican congressman and perennial presidential candidate calls "The Great Inflation," which he has long preached is inevitable, given the profligacy of the federal government and the easy monetary policies of the Federal Reserve. Fortunately for Ron Paul and his army of gold-bug disciples, the "stopped clock" investment strategy finally seems to be paying off. Gold and gold futures prices have been hitting record highs.

Gold-mining stocks, where Paul has the bulk of his money, have also hit pay dirt, albeit rising at a slower pace. Gold is up about 28% this year, through Thursday, to $1,823.80 a troy ounce, and 106.8% since 2009. In the same periods, the NYSE ARCA Gold Miners Index is down 2.9% and up 78.6%. The S&P 500 is down 9.3% and up 26.3%.

In his most recent financial disclosure, which covers the year 2010, Paul had $1.6 million to $3.5 million in gold- mining stocks. He also has a stake in three bear-market funds—and has for many years.

View Full Image

Reuters/Jim Young/Landov

With gold hitting record highs, Paul's "stopped clock" portfolio looks like it's finally paying off.
In all, Ron Paul's portfolio amounts to a super bearish bet against the U.S. economy. If the country had defaulted on its debt earlier this month, he likely would have made a bundle. The congressman voted against House Speaker John Boehner's plan to lift the nation's $14.3 trillion spending cap.

TO OUR SURPRISE, Paul's financial disclosures reveal no holdings of physical gold, gold coins, or gold equivalents like certain exchange-traded gold funds, which is confounding, given his strident advocacy of the metal as an insurance policy against the almost-certain debasement of the currency by politicians and central bankers. So we dug around a little. In his financial-disclosure form for the years 1994 through 2002, Paul reported holding "semi-numismatic" coins worth between $100,001 and $250,000. But from 2003 onward, they were never mentioned again.

Rachel Mills, the congressman's press spokesperson, said Paul, who generally is garrulous on the topic of hard money, did not wish to comment. According to the 2010 guidelines by the House committee on Official Conduct, "Personal property, if held for investment or the production of income, must be disclosed if it meets the reporting thresholds. Collectibles can include, but are not limited to, works of art, vintage automobiles, stamps, jewelry, precious metals, rare coins, and books."

Based on his congressional financial disclosures going back to 1994, Paul is a buy-and-hold investor who seldom cashes in his winning picks. He's owned shares of Agnico Eagle Mines (ticker: AEM), Barrick Gold (ABX) and Goldcorp (GG) since at least 1994. And he made additions to his gold-mining portfolio in 2003, the year the U.S. invaded Iraq, adding a dozen new mining stocks to his portfolio, while selling shares of Barrick Gold and his entire stake in Freeport-McMoRan Copper & Gold (FCX), which he had owned since at least 1994. He unloaded $27,440 worth of Pan American Silver warrants, purchased in January 2003, as the stock market was tanking in February 2008. In 2010, he sold $50,000 to $100,000 worth of his Goldcorp shares with hardly any gains.

Paul, who vows that as president he would abolish the Federal Reserve, also owns stakes valued at $1,001 to $15,000 apiece in three contrarian mutual funds: Federated Prudent Bear (BEARX); Rydex Dynamic Nasdaq-100 2X (RYVYX), an inverse bet on the Nasdaq; and Rydex Inverse S&P 500 Strategy (RYURX), which bets against the S&P 500. And he owns $1,001 to $15,000 worth of Dundee Corp. (DC-A.Canada), a Toronto-based investment management firm heavily into minerals.

Paul's investment strategy is a financial planner's nightmare. Most pros say that gold-mining stocks should be a small part of a diverse portfolio because the shares tend to outperform in bull markets but underperform in bear markets. Mining stocks, for example, were among the most dismal performers in 2008.

David Christensen, CEO of ASA Gold and Precious Metals (ASA), a closed-end fund, told us that mining shares have historically been more volatile than hard gold. If bullion went up 10%, for example, you'd see a 20% gain or more in gold-mining stocks, he said. But lately that has changed. "In the last six to nine months, gold-mining shares have not exhibited that amount of leverage," said Christensen. He thinks exchange-traded funds trading in gold, which are a more efficient way for investors to own bullion, have drawn off some investment dollars from gold-mining shares.

Paul has been predicting disastrous inflation since President Richard Milhous Nixon took the U.S. off the gold standard in 1971. According to his scenario, inflation will be so severe that people will abandon the dollar and insist on hard money like gold for payment.

A 2010 blog post expands on the idea. Massive inflation, he wrote, "guts the savings and earnings of the people, who have very limited options for protecting themselves against these ravages. One option is to convert their fiat currency into something out of reach of central banks and government spending, such as gold or silver."

But if he's wrong, bullion prices likely will pull back as the born-again gold bugs rush to take profits. Gold-mining shares would pull back even more if history is any guide, taking a lot of the glitter of Ron Paul's gains.

Pot of Gold: Ron Paul's Top 10 Holdings

Return* Return* Size of
Company/Ticker 1-Yr 3-Yr Holding
Goldcorp / GG 19.13% 17.00% $500,001 - $1,000,000
Barrick Gold / ABX 12.24 15.49 $250,001 - $500,000
Newmont Mining C Stock / NEM 1.12 12.02 $250,001 - $500,000
Agnico Eagle Mines / AEM 1.13 5.88 $100,001 - $250,000
AngloGold Ashanti / AU 2.02 19.33 $100,001 - $250,000
IAM Gold / IAG 3.69 52.07 $100,001 - $250,000
Mag Silver / MVG 39.97 9.75 $50,001 - $100,000
Pan American Silver / PAAS 22.72 4.71 $50,001 - $100,000
Silver Wheaton / SLW 74.51 49.54 $50,001 - $100,000
Virginia Mines / VGMNF.OTC 28.05 31.11 $15,001 - $50,000
Gold 48.34 31.61
S&P 500 6.04 -1.25
*All returns are as of 8/18/11; three-year returns are annualized.
Sources: Bloomberg; OpenSecrets.org


E-mail: editors@barrons.com

[llepard]

Fortunately for Ron Paul and his army of gold-bug disciples, the "stopped clock" investment strategy finally seems to be paying off. Gold and gold futures prices have been hitting record highs.

What the FUCK is he talking about "stopped clock". Hmmmmmm.... let's see. In the last 11 years gold is up 18% per year compounded, the best performing investment on the planet in that time frame, with the exception of gold stocks which are up 26% per year compound annually over the past 10 years.

THE PROPAGANDA AGAINST GOLD THAT IS BEING SPEWED BY THE ESTABLISHMENT WOULD BE FUNNY IF IT WERE NOT SO SICK. GOLD IS THE ONLY PROTECTION (SILVER TOO) AGAINST THE ESTABLISHMENT'S PLAN TO RUIN THE DOLLAR AND SO THEY MUST HAMMER IT RELENTLESSLY. PROTECT YOURSELF.

[specsaregood]

So much jealous butthurt that author has. Hey pal, if you had listened to him you too could have a fist full of precious metals now instead of your losing investments.

[sailingaway]

Because Barrons doesn't benefit from keeping Keynesianism and corporatism alive at all.....

[sofia]

Fortunately for Ron Paul and his army of gold-bug disciples, the "stopped clock" investment strategy finally seems to be paying off. Gold and gold futures prices have been hitting record highs.

What the FUCK is he talking about "stopped clock". Him let's see. In the last 11 years gold is up 18% per year compounded, the best performing investment on the planet in that time frame, with the exception of gold stocks which are up 26% per year compound annually over the past 10 years.

DOW hit 10,000 for the first time in 1998....now it's at 10,800....Yeah, us 'Gloom and Doom" goldbugs lost out didnt we?

[llepard]

DOW hit 10,000 for the first time in 1998....now it's at 10,800....Yeah, us 'Gloom and Doom" goldbugs lost out didnt we?

It is outrageous. Black is white with this crowd. In the Empire of Lies telling the truth is a revolutionary act.

People need to learn and know what Bill Murphy and Planet GATA know.

www.gata.org

or www.lemetropolecafe.com. Take a free trial, I have subscribed for years and it is the one thing I make sure to read every day.

LL

[sofia]

So much jealous butthurt that author has. Hey pal, if you had listened to him you too could have a fist full of precious metals now instead of your losing investments.

I recently had a friend kind of go off on me when I told him he should have listened to me when I told him to buy gold/silver in 2008.

He got irritated and told me I was just lucky and that now I am foolish for not profit-taking and getting into stocks.

Fools will never learn.

[Patrick Henry]

Yeah, he should have put all his money in the Dow lol.

[sofia]

It is outrageous. Black is white with this crowd. In the Empire of Lies telling the truth is a revolutionary act.

In the horse race of returns, it's a close one between the mattress and the DOW...

At least with mattress you dont have to deal with emotional ups/downs nor pay cap gains...LOL

[AdamT]

They're just pissed their ponzi con game of smoke and mirrors is crumbling before their eyes. Lashing out at Ron Paul, who had the intelligence to see what was happening (and invested accordingly), will only make these Barrons clowns look more foolish. Bring it!

[fearthereaperx]

I love these desperate thinly veiled hit pieces on a man like Ron Paul trying to spin good investment acumen/foresight into something entirely different and malicious.

[Travlyr]

This is the kind of forward thinking leadership skills I look for in a presidential candidate.

Ron Paul is a smart man who studied the situation and acted on it.

Ron Paul 2012

[JohnGalt23g]

Fortunately for Ron Paul and his army of gold-bug disciples, the "stopped clock" investment strategy finally seems to be paying off. Gold and gold futures prices have been hitting record highs.

What the FUCK is he talking about "stopped clock". Hmmmmmm.... let's see. In the last 11 years gold is up 18% per year compounded, the best performing investment on the planet in that time frame, with the exception of gold stocks which are up 26% per year compound annually over the past 10 years.

THE PROPAGANDA AGAINST GOLD THAT IS BEING SPEWED BY THE ESTABLISHMENT WOULD BE FUNNY IF IT WERE NOT SO SICK. GOLD IS THE ONLY PROTECTION (SILVER TOO) AGAINST THE ESTABLISHMENT'S PLAN TO RUIN THE DOLLAR AND SO THEY MUST HAMMER IT RELENTLESSLY. PROTECT YOURSELF.

You know, I'm willing to bet the author's financial advisor (if he employs one), didn't demonstrate no 18-26% returns per annum.

Perhaps the author should consider seeking RP's financial advice.

[WilliamC]

This is big-time into the 'then they fight you' stage.

I can't help but think it only means Ron Paul is winning!

[specsaregood]

I love these desperate thinly veiled hit pieces on a man like Ron Paul trying to spin good investment acumen/foresight into something entirely different and malicious.

In the meantime, the rest of congress exempts itself from insider trading laws and strikes it rich.

http://www.forbes.com/sites/kylesmith/2011/06/01/insider-trading-rules-that-dont-apply-to-congress/


Except that one thing you can do as a member is study pending legislation and regulatory changes, call up your broker and instruct him to trade on that nonpublic information. Do this as often as you want; you will suffer no penalty. There is no limit to how much money you can earn on insider trading in the House or Senate. Lawmakers and their staffers are specifically exempted.

http://www.theatlantic.com/politics/archive/2011/05/are-members-of-congress-engaged-in-insider-trading/239564/


So says a study just published in Business and Politics. A portfolio that imitates the stock purchases of House members outperforms the market by more than 6 percent in the course of a year, its authors found. "A previous study of the stock returns of U.S. Senators in a leading finance journal indicates that their portfolios show some of the highest excess returns ever recorded over a long period of time, significantly outperforming even hedge fund managers," they wrote. "Until now, there has been no similar study of Members of the U.S. House of Representatives."

[kill the banks]

[QUOTE=llepard;3489437]It is outrageous. Black is white with this crowd. In the Empire of Lies telling the truth is a revolutionary act.

People need to learn and know what Bill Murphy and Planet GATA know.

www.gata.org


[QUOTE=llepard;3489437]It is outrageous. Black is white with this crowd. In the Empire of Lies telling the truth is a revolutionary act.

People need to learn and know what Bill Murphy and Planet GATA know.

www.gata.org
ahh , thx ! I did join the trial and will go though it ... time we got out of this dark side cartoon we live today and see the redshield bankster mafia and their sick media ... much appreciated and I know ur personal efforts to help Ron will be rewarded ... Often these changes come by surprise and perhaps this blowback to the press for dismissing Dr Ron Paul is beginning of critical mass ... kill the banks

[llepard]

this is big-time into the 'then they fight you' stage.

I can't help but think it only means ron paul is winning!

word!

[ctiger2]

It still amazes me how many people just can't see the obvious.