Would Ron Paul's election be good or bad for gold price?

[Badger for Paul]

If Ron Paul was elected, do you think the price of gold would rise or fall? I can see it rising because Paul would likely try to put some gold behind the currency to support its value and allowing the use of precious metals as a currency. I can see it falling because as Paul brings fiscal sanity to the budget and stops FED money-printing, the value of the dollar would rise, and as the dollar rises, that usually leads to the price of commodities, including gold, falling. Any thoughts?

[CasualApathy]

When Ron was asked about this, he pointed out the irony that his policies would actually make the gold price drop, and thus hurt his own investments.

[Bern]

The price of gold is going to rise over the long term regardless of whether or not Ron Paul is elected IMO.

[low preference guy]

The price of gold is going to rise over the long term regardless of whether or not Ron Paul is elected IMO.

agree. paper money is ending inevitably.

[Badger for Paul]

So even Ron Paul cannot save the dollar by ending the FED and putting some gold backing behind the currency? I thought that sound money meant a currency that was not getting devalued. If the price of gold would continue to rise, it would imply unsound money, like we have currently.

[sailingaway]

It would be good for the country. As for the price, the price of gold, to the extent it is a 'panic' price, might go down. To the extent already existing inflation is still not priced into the price of gold, it might go up a while yet, until the Fed's policies can be reversed. That will be based on what is already in the works, though. On the other hand, he'd be fighting to get rid of capital gains tax including specifically on precious metals he wants to let be used as competing currency. So the value of currently held gold to the holder, net of taxes, would be higher, regardless of if the price goes down, don't you think?

[AFPVet]

So even Ron Paul cannot save the dollar by ending the FED and putting some gold backing behind the currency? I thought that sound money meant a currency that was not getting devalued. If the price of gold would continue to rise, it would imply unsound money, like we have currently.

That's what I thought... ether a gold or silver backed dollar—like how it used to be.

[brandon]

It would have no effect because the value of gold is intrinsic and therefore never changes. You could still get the same amount of suits you could with it since back in ancient egyptian times.
517

[ctiger2]

It would have no effect because the value of gold is intrinsic and therefore never changes. You could still get the same amount of suits you could with it since back in ancient egyptian times.
517

You're correct. The intrinsic value of Gold is stable. It's the paper price of the Gold that fluctuates wildly. If a suit costs 1oz of Gold today, once the USD is backed by Gold OR Gold and Silver are allowed to be competing currencies, the suit will still be 1oz of Gold but the USD price of the suit will more likely be $5K-$50K range.

[ctiger2]

So even Ron Paul cannot save the dollar by ending the FED and putting some gold backing behind the currency? I thought that sound money meant a currency that was not getting devalued. If the price of gold would continue to rise, it would imply unsound money, like we have currently.

The dollar could've been saved in it's current form IF monetary changes would've happened 10yrs ago. Now it's too late to save the USD in it's current for because the Fed has tremendously inflated the currency in the past 10yrs. If Ron has his way and allows competing currencies Gold/Silver, both the metals will rise in USD price until they reach their fair market value. Then you could peg the USD to a weight of Silver/Gold OR just let them free market price float. People could save in USD/Gold/Silver after that point because one would assume the treasury/Fed wouldn't be allowed to create additional currency, and if they did, the metals would rise to accommodate the increase in currency (USD). Then you'd have a sound currency options.... Silver/Gold.