In an interview, Ron Paul, who until recently was a Congressman and presidential candidate, had a few comments on the value of the Dollar and the future price of gold.

“Eventually, if we’re not careful, it will go to infinity, because the dollar will collapse totally,” Paul stated on’s “Futures Now.”

According to Mr. Paul, “As long as we have excessive spending, and excessive computerized money, we are going to see gold go up,” this, he reasons, will result from the value of the Dollar being driven down. The more Dollars that are created out of thin air, the less valuable each Dollar becomes, and the more that happens, in the long term, the more Dollars it will take to purchase anything including an ounce of gold, as long as the price of gold is measured in Dollars.

Continuing down this road of reasoning, Mr. Paul goes on to its logical conclusion; If monetary expenditures/easing from Washington and Federal Reserve results in ruining the U.S. economy and collapsing the Dollar, then the price of gold expressed in Dollars would be “infinity.”

It is because of these macro forces and long term outlook that the current short term gold action does not trouble Mr. Paul. As George Bernard Shaw once said, “You have to choose between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the government. And, with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.”

“Markets do these types of things—they go up sharply, and sometimes they take a rest,” Paul remarked. “I was never very good on short term, whether it’s the stock market, or whatever. But if you look at the record of the value of the Dollar since the Fed’s been in existence, we have about a 2-cent Dollar. And gold used to be $20 an ounce. So I’d say the record is rather clear on the side of commodity money.”

“Six thousand years of history shows that gold always retains value,” Paul noted, “and paper always self-destructs.”

The demise of the U.S. Dollar would translate into a real bad day for just about everyone. The point Mr. Paul likes to draw a line under is, people who trade Dollars for gold will be very glad they did while it is still a possibility.

At ITM Trading, we would be pleased to share our perspective and market knowledge as well as the benefits of owning gold. Please feel free to call us at 1 888 OWN GOLD (1 888 696 4653).