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The Euro, Demand for Gold, The Gold Standard and Rand Paul

Listeners’ Questions, Peter’s Answers – April 5, 2012

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Tom from Belgium
There seems to be a high probability that the situation in Europe may get worse before it gets better. As this further weakens the euro and investors look for relative safety in the dollar, isn’t this bearish for the precious metals in the short to medium term? Or do you think more people will be driven to the PM as Europe becomes more unstable?

Maurice from London
I am interested in building some gold into my portfolio but am concerned as to whether there may be a temporary decline in the gold price when the next global crash occurs, given the inevitable liquidity squeeze which will come and the fact that there has been a growing investment demand for Gold leading to positions which may be liquidated in a squeeze. What are your thoughts on that?

Debbie from Kent, WA
If America were to return to the gold standard, how would the mechanics of such a move work nationally? How would it affect the amount of paper money in our country and how would it affect our global trade? How would the currency of our trading partners be affected and what would they have to do in order to accommodate the change?

Barbara from Houston, TX
I have a strong sense of Ron Paul’s commitment to sound money, peace, and freedom. It appears his son Rand Paul shares his father’s convictions. What is your take on Rand Paul? Is he as strong as his father?

Bill from Rochester, NY
Have you been successful in engaging Paul Krugman in a serious dialogue regarding these the Austrian and Keynesian schools and what evidence there is to support and/or detract from each of them? In addition, given that we now are living in a Keynesian economy, in what do you advise Austrian’s to invest? Why? Conversely, in what do you believe Krugman would advise Keynesian’s to invest? Why?