"I remember watching gold when it was 35 dollars per ounce and we thought if it ever hit one hundred dollars, the world would come to an end. And then a thousand dollars. So no, it's good as long as we continue to do this (print money). You know, it could go to infinity because people just leave the dollar..."
Jackie DeAngelis countered that with all of the geopolitical unrest currently taking place around the world, "you'd expect gold to be higher right now."
The former congressman pointed out that "Long-term and economic law says if you print a lot of paper money, the value of that currency will go down, and things and most prices will go up and indeed, gold always goes up against that currency."
Dr. Paul was hesitant to make concrete predictions about the price of gold though. "I don't get in the business of saying in a year or two or three it's going to be two or three or four thousand dollars because it really challenges the basic fundamental beliefs of the Austrian school, to make these kinds of predictions.”
He was also quick to downplay any minor bumps or jumps in the price of gold. "Markets do these things-- they go up sharply and sometimes they take a rest. Six thousand years of history shows that gold always retains value, and paper always self-destructs."
While "infinity" is difficult to visualize, it is not hard to see that Dr. Paul has a valid case for gold's continued rise. Over the past century, since the creation of the Fed, the dollar has lost 98% of its value while gold has steadfastly risen in the face of economic uncertainty.
The entire interview can be seen here.
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