When it comes to investing, Rep. Ron Paul (R-TX) has made no secret where his preferences lie.
Total Return, The Wall Street Journal’s personal-finance blog, recently reviewed Dr. Ron Paul’s investment portfolio. According to the latest data available from his 2010 Form A financial disclosure statement, Dr. Paul is heavily invested in gold and silver.
The Wall Street Journal explains:
. . . Rep. Paul’s portfolio--fully 64 [percent] of his assets--is entirely in gold and silver mining stocks. He owns no Apple (NASDAQ:AAPL), no ExxonMobil (NYSE:XOM), no Procter & Gamble (NYSE:PG), no General Electric (NYSE:GE), no Johnson & Johnson (NYSE:JNJ), not even a diversified mutual fund that holds a broad basket of stocks.
His non-mining portfolio holdings includes 14 percent cash and 21 percent real estate investments, according to the Journal report.
“[Paul] has no love lost for bonds (0 percent of his portfolio) and a dismal outlook on the stock market. Only .1 percent of Representative Paul’s portfolio is allocated to stock funds, and all of those funds are bearish--inversely correlated to the performance of the market," writes Chris Barth of Forbes.
(Investor Insights: What Are ECB Actions and Utility Stocks Saying About Gold?)
While some may call Dr. Paul’s investment portfolio unorthodox or risky, many call it successful. Due to the devaluation of the U.S. dollar, gold and silver have been in a bull market for the past decade, and it seems that Dr. Paul has had the foresight to invest in gold and silver mining stocks early.
“Paul’s portfolio is worth something roughly between $2.5 and $5.5 million, although that number has likely taken a hit as gold and silver prices have declined in recent months,” writes Barth.
And should any of this come as a surprise?
“The libertarian has long rallied for a gold standard, and has vocally worried about the stock market’s reliance on the value of the dollar,” writes Barth.
Recall earlier this year when Paul made headlines by confronting Ben Bernanke at a U.S. House Financial Services Committee Meeting, pushing the Fed Chairman to answer a question as to whether gold is money.
See what happens when Paul asks Bernanke, “When you wake up in the morning, do you care about the price of gold?” (the fun begins at the 3:50 mark):
Dr. Paul’s top three holdings are Goldcorp, Barrick Gold and Newmont Mining. He has owned these gold miners for a long time, before 2003. And despite the fact that these would appear to be sound investments, some analysts still think Paul -- for a lack of a better descriptor -- is crazy.
William Bernstein, an investment manager at Efficient Portfolio Advisors, says he has never seen such an extreme bet on economic catastrophe, according to the Journal.
"This portfolio is a half-step away from a cellar-full of canned goods and nine-millimeter rounds,” he says.
Still, despite repeated criticisms from market analysts, it seems that the simple fact of the matter is that Paul recognizes the headwinds facing the dollar and puts his money where his mouth is.
Here are the most popular gold and silver miners found in Dr. Paul’s financial disclosure statement:
- Goldcorp Inc. (NYSE:GG)
- Barrick Gold Corp. (NYSE:ABX)
- Newmont Mining Corp. (NYSE:NEM)
- Agnico-Eagle Mines Ltd. (NYSE:AEM)
- AngloGold Ashanti ltd. (NYSE:AU)
- IAMGOLD Corp. (NYSE:IAG)
- Eldorado Gold Corp. (NYSE:EGO)
- Mag Silver Corp. (AMEX:MVG)
- Pan American Silver Corp. (NASDAQ:PAAS)
- Silver Wheaton Corp. (NYSE:SLW)
- Golden Star Resources, Ltd. (AMEX:GSS)
- Kinross Gold Corp. (NYSE:KGC)
- Brigus Gold Corp. (AMEX:BRD)
- Coeur d’Alene Mines Corp. (NYSE:CDE)
- Hecla Mining Co. (NYSE:HL)
[Editor's note: portions of the above originally appeared on Wall St. Cheat Sheet.]