Ron Paul: Get Back to Gold

If Ron Paul is correct, monetary authorities around the globe have been conspiring to suppress gold prices for decades.

Not convinced? Don't tell that to his followers. Because partly as a result of this view, Paul, a Texas congressman and Republican presidential hopeful, has become the champion of gold bugs who see him as the best friend of their precious metal, and, they hope, the next occupant of the White House.

"Our central banks around the world colluded over the last 10 to 20 years and have been dumping gold to keep gold down," Paul said in an interview with TheStreet.com when he met with voters in Concord, N.H., late Tuesday. "But finally, [the price] broke loose, and gold is soaring again to historic levels."

Ron Paul: Gold Market Rigged for Decades

For those of you out there who are unfamiliar with Paul's contention, understand that he is not alone. His comments echo the beliefs of fringe dwellers who for years have speculated that a multinational consortium of government banks, including the Bank of England and the Federal Reserve, have deliberately manipulated gold prices in an effort to downplay inflation.

One would be hard-pressed to characterize Paul himself as fringe dweller. But he does have a promise, if he is elected, that would have considerable repercussions for the U.S. and global economies. His plan? Bring back the gold standard and eliminate the Fed.

Ron Paul: Gold Market Rigged for Decades

Many observers use the price of gold as a bellwether for future inflation -- if it's rising, then inflation could be a threat. For that reason, conspiracy theorists believe governments everywhere have been trying to stymie the historic rally in the metal in an effort to keep such worries dormant.

For gold investors, the good news is that even if such a cabal exists, it hasn't prevented the metal from hitting a record high of roughly $894 an ounce this week. Gold spent last summer hovering around $670, and it has surged three-fold in the past seven years from its 2001 low at $257.