How high can the price of gold go? Former Congressman and presidential candidate Ron Paul thinks it could go to infinity.
Appearing on CNBC’s “Futures Now,” Paul explained that “excessive spending and excessive computerized money” is driving down the dollar, and in turn raising the price of gold.
“Eventually, if we’re not careful, it will go to infinity, because the dollar will collapse totally,” Paul said.
So how could gold actually be worth infinity?
Paul explained that if the dollar collapses, and he fears it might, no amount of dollars could purchase any amount of gold, making gold essentially worth infinity — at least in terms of dollars.
Considering his long-term outlook, Paul said he isn’t concerned about the recent drop in gold prices.
“Markets do these types of things — they go up sharply, and sometimes they take a rest,” Paul said. “I was never very good on short term, whether it’s the stock market, or whatever.”
Since the creation of the Federal Reserve, “we have about a 2-cent dollar,” Paul said. “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 said, “and paper always self-destructs.”