Ron Paul wiped out on the stock market

[Einzige]

Ouch.

I really do feel bad for him. I don't react from the gut with Ron Paul the way I do a lot of Republicans (including his kid). I genuinely feel bad for him, and I think he did have some pretty decent ideas, even if he framed them the wrong way. He believed in his idea to the end.

A few weeks ago, we figured out what was happening to the Ron Paul portfolio — the former Texas congressman's 64% investment in gold and other rocks — and it wasn't pretty.

His portfolio is comprised of major miners and a handful of juniors, and displays a marked lack of diversification.

Investment manager William Bernstein told the Wall Street Journal that “This portfolio is a half-step away from a cellar-full of canned goods and nine-millimeter rounds.”

We looked at Ron Paul's most-recently disclosed portfolio. Granted, he may have picked up the stocks at any point in the past several years, so he's probably still above water on the investments. It's also conceivable that since he's left public life he's pared back a lot on his holdings. So we're just going based on what's public.

Still, these have taken a shellacking, and it's likely that he's lost a significant percent of his net worth, assuming he's held on to them over the past six months.

Here's what has happened:

Newmont Mining Company: –37.29%
Goldcorp Holdings: –34.64%
Barrick Gold: –48.17%
Agnico Eagle Mines : –35.78%
Allied Nevada Gold Corp: –68.48%
Alumina Common: +6.32%
Anglo Gold Ashanti Ltd. –44.13%
BrigusGold Corp. Com MPV: –39.18%
Claude Resources Inc: –56.39%
Coeur D'Alene Mines Corp: –47.21%
Hecla Mining Co: –47.74%
El Dorado Gold Corp: Not Listed
IAM Gold Corp: –65.40%
Kinross: – 44.11%
Lexam Explorations Inc: – 57.57%
Mag Silver Corp: –-40.50%
Metalline Mining Co: Not Listed
Pan American Silver: –35.97%
Silver Wheaton Corp: –37.50%
Virginia Mines Inc: —16.48%
Vista Gold Corp. –53.9%
Viterra Inc +0.81%
Wesdome Gold Mines Ltd: –43.29%

All told, the average loss was -40.3% over the past six months

Given that The Wall Street Journal reported that Paul's portfolio was worth between $2.44 million and $5.46 million — and that 64 percent of his assets were in these precious metal stocks — a very loose estimate is that Ron Paul has lost between $624,640 and $1,397,760 over the past six months, based on the average loss of his mining holdings. This assumes a 40.3% loss on 64% of his holdings.

A lot of that pain has come in the past two days alone. Here's what has happened to the portfolio since last Thursday:

Newmont Mining Company: -12.51%
Goldcorp Holdings: -11.38%
Barrick Gold: -18.03%
Agnico Eagle Mines : -15.59%
Allied Nevada Gold Corp: –16.23%
Alumina Common: -10.47%
Anglo Gold Ashanti Ltd. –16.41%
BrigusGold Corp. Com MPV: –16.19%
Claude Resources Inc: –19.32%
Coeur D'Alene Mines Corp: –14.74%
Hecla Mining Co: –13.27%
El Dorado Gold Corp: Not Listed
IAM Gold Corp: –16.67%
Kinross: – 21.19%
Lexam Explorations Inc: – 17.78%
Mag Silver Corp: –-21.50%
Metalline Mining Co: Not Listed
Pan American Silver: –14.41%
Silver Wheaton Corp: –14.30%
Virginia Mines Inc: —11.36%
Vista Gold Corp. –13.58%
Viterra Inc +0.0%
Wesdome Gold Mines Ltd: –1.79%

Pretty bleak.

 

[American]

Who the hell is his financial manager?

 

[samsmart]

Who the hell is his financial manager?

It doesn't matter who his financial adviser is if he doesn't follow that advice.

Follow the 2007-08 financial crisis there was a major loss of confidence in stocks and other abstract investments. So a lot of people invested in commodities, especially gold.

This was pushed by many conservative radio hosts and pundits advertising Goldline International, a gold and silver coin company. The advertising those hosts provided implied that gold was a safer investment than abstract investments.

Those on the fringe went so far as to say that everything would go to hell and in a post-apocalyptic world only specie - such as gold and silver - would be used as currency when the federal government was dissolved and anarchy reigned and so paper notes wouldn't be acceptable.

This caused a rash of investing in precious metals, especially gold and silver. During the past 6 years, gold rose to very high values. The problem is people saw how high gold was getting and invested when the market was already high - rather than when it was low, back during the 80's.

This effectively caused a gold bubble that is now bursting.

No disrespect to Ron Paul, but I'm pretty sure that he either chose his financial adviser based on libertarian ideological grounds or he vetoed his adviser and invested based on libertarian ideological grounds.

And that's even if he has a financial adviser at all.

 

[Einzige]

Who the hell is his financial manager?

Ron Paul is probably his own financial adviser, or one of the fringe Austrians he associates with.

Again, I've got nothing against Paul. His heart is in the right place, even if his head rarely is. But he believes his own story, and the consequences are pretty dire.

 

[American]

It doesn't matter who his financial adviser is if he doesn't follow that advice.

Follow the 2007-08 financial crisis there was a major loss of confidence in stocks and other abstract investments. So a lot of people invested in commodities, especially gold.

This was pushed by many conservative radio hosts and pundits advertising Goldline International, a gold and silver coin company. The advertising those hosts provided implied that gold was a safer investment than abstract investments.

Those on the fringe went so far as to say that everything would go to hell and in a post-apocalyptic world only specie - such as gold and silver - would be used as currency when the federal government was dissolved and anarchy reigned and so paper notes wouldn't be acceptable.

This caused a rash of investing in precious metals, especially gold and silver. During the past 6 years, gold rose to very high values. The problem is people saw how high gold was getting and invested when the market was already high - rather than when it was low, back during the 80's.

This effectively caused a gold bubble that is now bursting.

No disrespect to Ron Paul, but I'm pretty sure that he either chose his financial adviser based on libertarian ideological grounds or he vetoed his adviser and invested based on libertarian ideological grounds.

And that's even if he has a financial adviser at all.

I think many thought the way the dollar was getting beat down that gold was a good investment. It hasn't lost all it's value. Besides he was invested in more than gold. I didn't buy any gold because those hosts said to.

 

[WCH]

It not keeping some major players from increasing their reserves.

Countries Buying the World’s Gold - 24/7 Wall St.

 

[Einzige]

That said, this makes me angry about articles like these touting Ron Paul as some investing mastermind.

 

[Oberon]

The Libertarian Party itself went bankrupt some time back because apparently it couldn't find a Libertarian who could balance a checkbook, so this is no surprise. This explains why he's starting a 'foreign policy institute' to replenish his bank accounts.

 

[Oberon]

That said, this makes me angry about articles like these touting Ron Paul as some investing mastermind.

Indeed. It's not like he's ever run a real business and actually knows anything about business or economics; he's a professional politician and con artist.

 

[Einzige]

The Libertarian Party itself went bankrupt some time back because apparently it couldn't find a Libertarian who could balance a checkbook, so this is no surprise. This explains why he's starting a 'foreign policy institute' to replenish his bank accounts.

Right-wing libertarians are, basically, fantasists. The real problem, though, is in a small subset of goldbugs that sort of took over the movement in the last decade.

 

[Velvet Elvis]

It's not like he's ever run a real business and actually knows anything about business or economics; he's a professional politician and con artist.

Serving his country, he was as a doctor in the United States Air Force from 1963 to 1965 and then with the United States Air National Guard from 1965 to 1968.

Specializing in obstetrics and gynecology, Paul opened his own practice in Texas. During the course of his career, he is said to have delivered more than 4,000 babies.

See...here I thought someone farted in this thread, but it was just you talking out of your backside.

 

[Geoist]

I really do feel bad for him. I don't react from the gut with Ron Paul the way I do a lot of Republicans (including his kid). I genuinely feel bad for him, and I think he did have some pretty decent ideas, even if he framed them the wrong way. He believed in his idea to the end.

Looks like he put all his eggs in one basket (unless there are other investments besides metals). Like you, I respect Dr. Paul on some fronts. I can relate to his libertarian ideals, but shun many of his conservative and Austrian views.

 

[ARealConservative]

Indeed. It's not like he's ever run a real business and actually knows anything about business or economics; he's a professional politician and con artist.

wow. hard to backtrack from that level of ignorance. well done

 

[ARealConservative]

networth in the millions.

apparently we have different definitions of wiped out.

 

[justabubba]

one of the VERY few politicians who actually acts on his beliefs

wonder what those who subscribed to his desire to return to a gold standard now think

 

[ARealConservative]

one of the VERY few politicians who actually acts on his beliefs

wonder what those who subscribed to his desire to return to a gold standard now think

they probably think you don't understand his position since he doesn't want to return to anything.

 

[justabubba]

they probably think you don't understand his position since he doesn't want to return to anything.

you think so, eh?
suck on this:

In 1982, Paul was the prime mover in the creation of the U.S. Gold Commission, and in many public speeches Paul has voiced concern over the dominance of the current banking system and called for the return to a commodity-backed currency through a gradual reintroduction of hard currency, including both gold and silver.

Political positions of Ron Paul - Wikipedia, the free encyclopedia
Caldwell, Christopher (2007-07-22). "The Antiwar, Anti-Abortion, Anti-Drug-Enforcement-Administration, Anti-Medicare Candidacy of Dr. Ron Paul". New York Times.

 

[Oberon]

Serving his country, he was as a doctor in the United States Air Force from 1963 to 1965 and then with the United States Air National Guard from 1965 to 1968.

Specializing in obstetrics and gynecology, Paul opened his own practice in Texas. During the course of his career, he is said to have delivered more than 4,000 babies.

So, he mooched off the taxpayers for a few years, and then went into a racket that has restricted competition and lobbies heavily to prevent free competition, requires government licensing, and guaranteeing profits. Impressive

See...here I thought someone farted in this thread, but it was just you talking out of your backside.

I don't have flatulence. Try breath mints.

 

[ARealConservative]

you think so, eh?
suck on this:
Political positions of Ron Paul - Wikipedia, the free encyclopedia
Caldwell, Christopher (2007-07-22). "The Antiwar, Anti-Abortion, Anti-Drug-Enforcement-Administration, Anti-Medicare Candidacy of Dr. Ron Paul". New York Times.

The gold standard pegged gold to the dollar.

Returning to a commodity backed currency <> returning to the gold standard.

 

[sangha]

Ouch.

I really do feel bad for him. I don't react from the gut with Ron Paul the way I do a lot of Republicans (including his kid). I genuinely feel bad for him, and I think he did have some pretty decent ideas, even if he framed them the wrong way. He believed in his idea to the end.

It couldn't have happened to a better person!! :lamo

 

[Oberon]

wow. hard to backtrack from that level of ignorance. well done

Nothing compared to your own. He was one of the top five porksters for many years, hardly a poster child for 'Libertarianism'.

 

[ARealConservative]

Nothing compared to your own. He was one of the top five porksters for many years, hardly a poster child for 'Libertarianism'.

you said a bunch of stupid things that were immediately proven wrong.

 

[Velvet Elvis]

So, he mooched off the taxpayers for a few years, and then went into a racket that has restricted competition and lobbies heavily to prevent free competition, requires government licensing, and guaranteeing profits.

Obstetricians "mooch off taxpayers?" Gynocology is a "racket?"

Jesus H. Christ are you delusional.

 

[Geoist]

Nothing compared to your own. He was one of the top five porksters for many years, hardly a poster child for 'Libertarianism'.

Congressional spending SHOULD be earmarked that way we know what we are spending our tax dollars on. People want to misrepresent this issue so they can give the executive branch more power through line item vetoes.

What the earmarks are spent on is another issue though. How much power does Dr. Paul have on what it is spent on I dont know.