Ron Paul wins inflation bet, makes estimated $300K in one day

Buried at the end of this hosted Benzinga article on Ron Paul’s winning stock strategy is the announcement that he may have made a cool $300,000 on Friday, when the rest of the market was running for the exits. Incidentally, this is the most liked article of the day (110 votes and counting), in stark contrast to the second closest article about Apple, which has a mere nine likes.

Given the “max value” of each position and holding it constant to today’s prices, Paul’s portfolio submitted to the Office of the Clerks was potentially worth over $3.5 million. With massive increase in gold prices, gold and silver mining stocks and funds have been performing very well today.

According to the stocks and funds Paul owned back in 2010, his dollar-weighted return today is 7.11%. Increasing his portfolio from yesterday’s close of about $3.5 million to over $3.8 million today. Currently, the S&P 500 is down 1.9%. So, Ron Paul’s portfolio is outperforming the S&P 500 by over 9.0% today.

For the sake of perspective, the most recent “Rise for Liberty” money bomb that began on May 17th managed to net $750K over the course of several days.

An article covering Paul’s portfolio was posted over at The Wall Street Journal last December, where an expert gave a great quotable:

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. ”This portfolio is a half-step away from a cellar-full of canned goods and nine-millimeter rounds,” he says.

There are many possible doomsday scenarios for the U.S. economy and financial markets, explains Mr. Bernstein, and Rep. Paul’s portfolio protects against only one of them: unexpected inflation accompanied by a collapse in the value of the dollar. If deflation (to name one other possibility) occurs instead, “this portfolio is at great risk” because of its lack of bonds and high exposure to gold.

Unexpected? Huh.

Mitt Romney may have clenched the Republican Party presidential nomination and now spreads platitudes, but when the curtain closes on who truly understood monetary issues in 2012, it’s going to be Ron Paul who is (once again) in the position of simply being able to point to his record and say “I told you so.”

  1. But why elect a president who understands the economy? That would be kooky.
    Ronpaulitic. Com

  2.  ”This portfolio is a half-step away from a cellar-full of canned goods and nine-millimeter rounds,”

    Words can’t explain how much I love this quote

  3. This makes me worry for Ron Paul because I also study Austrian economics and I believe that the prices and growth in commodities such as Gold, and stocks in general, are due to the creation of debt not real money. The amount of “money” that actually exists is so small that when all these debts come due, there should be a massive de-leveraging process and a return to the USD. In other words, we are in a debt bubble and when it pops we will see massive deflation before inflation. In order for inflation to occur, the US would have to first lose it’s reserve currency status and then physically print more paper money (or equivalents)than existing debt. Since this is mathematically almost impossible, I believe that we will see a long period of deflation before inflation.
    I worry that his disbelief in fiat currency is clouding his long term investment strategy. I do not believe fiat money and

    1. Fractional reserve banking should exist. I believe that they are immoral. But I also believe that due to the reality of the world’s monetary systems, and the US’s particularly unique situation as the world’s reserve currency, Ron Paul could be tragically wrong in the long run, but I hope he is right.

      1. That’s funny Dan, I think most austrian economists would put a 180 spin on what you just said, frankly I think Ron Pauls investment strategy is sound, but due to the depressive negative consequences of   what could possibly result from continued devaluation of the dollar, I actually hope Ron Paul(and myself for that matter as I 100% agree w/him)is wrong, as I do not look forward to that future, although I fear it is inevitable.

        Liberty or Death

  4. great!!! he will do the same for us. and with his pay out he pays his own security and doesnt waste ours on secret service… and ROMNEY? worth oner a 1/4 billion and we are paying for his…. RON PAUL!!!

  5. GOOGLE: 
    Prop 87 (510) 537-1796


    Bill Clinton, Al Gore &
    Senator Obama supported the California 2006 Prop. 87, a GMO corn ethanol
    welfare program.

    Bill, Al, have changed opinion on the ethanol mandate, I wonder if Obama will
    make this the time for CHANGE?

    I support a waiver of the ethanol mandate, voluntary use of ethanol in my gas.

    Federal ethanol policy increases Government motors oil use and Big oil profit.


    It is reported that today
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    Big oil profits are the result that may be ready for change.


    We do NOT support AB 523 or
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    Folks that pay more at the
    pump for less from Cars, trucks, food, water & air need better, it is time.


    The car tax of AB 118 Nunez
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    folks still agree.


    AB 523 & SB 1326 are just
    a short put (waiver) from better results.


    GOOGLE:  Prop 87 (510) 537-1796


  6. Ron Paul is right, he has been warning of these issues for over thirty years. While we can all say that we “hope” his predictions are wrong…he is going to be right. History is on his side. Our country and our way of life will significantly change for the worse once the dollar tanks, this is why I say I hope he is wrong…not because I dont agree with him, but that the reality of what it means will be terrible. Listen to Ron Paul and do what you can to prepare for very hard times. invest in Gold and Silver if you can, think about food and water shortages, some ammo maybe not a bad idea either. IN Austrian economics it is hard to make timely prediction, so we dont know when the crisis will hit the fan, but we do know that it is coming and unless there is a complete reversal of monetary policy and foreign policy (which is unlikely), we are headed to the edge of the cliff. If the GOP actually cared about the country they would rally behind Paul and save the country for economic disaster. but they dont care about America, they care about the same thing the establishment libs care about….creating world government and a world currency, which FYi is being more publicly discussed in the MSM, Just read an article about Spain calling for it. Vote for Paul if you care about America, he might just be our last hope, like I said, we dont have a time table for how fast this all goes down, it could be fast or drag out for years…

  7. Ron Paul even if I have to write him in. I will never vote foe a socialist whether he be a Republican or Democrat, ever. Ron Paul or none at all. With all the cheating the GOP has done and is still doing they can kiss my buttocks!

  8. The Ron Paul Revolution is an Internal as well as an External Revolution.
    I AM RON PAUL : Tell America “Your” story. “Refuse To Lose” and “Restore US All with Ron Paul” 

  9. The financial reckoning is coming.It is time to recognize the man who reckoned it was coming, Dr.Ron Paul. He may have a charisma handicap,but He knows his Economics and Foreign Policy. NYT writer Thomas Friedman : “Americans want to be as dumb as they want to be”
    Restore US All vote Ron Paul–for Vice President,at least !
    A true Iconic American Original