Ron Paul has long been known to make rather bold statements on the U.S. economy. And while he has continued to run for President in recent years, with each campaign being more successful than the last, his views have also made him a popular name in the investing world. Particularly in the precious metals space, Ron Paul has had a lot of sway in recent years with his comments on gold and silver. But he does not stop at just making comments on these two commodities, he takes it a step further and puts his money where his mouth is [for more commodity news and analysis subscribe to our free newsletter].
The former Republican presidential candidate owns no bonds or fixed income exposure, and has just 0.1% in equities. So where does all of his money go? Gold and silver miners. Mr. Paul has approximately 64% of his total assets invested in miners of both gold and silver, with big names like Barrick Gold (ABX), Newmont Mining (NEM), and Goldcorp (GG) all making an appearance. He also owns a large number of junior miners with around 5% of his assets invested in those that fall under the microcap umbrella.
“At our request, William Bernstein, an investment manager at Efficient Portfolio Advisors in Eastford, Conn., reviewed Rep. Paul’s portfolio as set out in the annual disclosure statement. Mr. Bernstein says he has never seen such an extreme bet on economic catastrophe” writes Jason Zweig. Bernstein went on to call the portfolio “a half-step away from a cellar-full of canned goods and nine-millimeter rounds” [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].
It appears that Ron Paul is making a large bet along with the likes of Peter Schiff and many other investors, as his portfolio is geared towards rampant inflation and a devaluation of the dollar. As helicopter Ben continues to print money and pump it back into the economy, it is only a matter of time before the dollar is forced to feel the negative impact. That, coupled with inflation, could lead to an economic crisis in the U.S., but not for precious metals and their producers. Mr. Paul is clearly counting on tough times ahead for our nation’s economy, do you agree? Let us know in the comments below.
Disclosure: No positions at time of writing.