On July 24, 2012, the House of Representatives passed an historic piece of legislation know as the Audit the Fed resolution. The bill, which calls for a full audit of the Federal Reserve System– including its lending facilities and monetary policy operations– passed overwhelmingly by a bipartisan vote of 327-98.
Rep. Ron Paul (R-TX), who is also Chairman of the Domestic Monetary Policy and Technology Subcommittee, is an ardent supporter of “sound money.” Many feel his legislation may the lead the country back to the Constitutional requirements for a U.S. currency backed by gold and silver. Some think such a transition would be very bullish for gold. But will gold prices stand to benefit from passage of this bill?
It may be anecdotal and simplistic, but let’s begin by taking a look at a 30-day gold chart which includes the day of the bill’s passage up to the present time:
Gold was roughly $1583 on the day of the bill’s passage. As I write this article, gold is trading at $1674 – up 5.7% since July 24th. This is not a claim of “cause an effect”, just a data point for whatever it’s worth. It is important to note most of the move in gold has been in the last few days, nearly a month after the bill’s passage.
- Sens. Paul, DeMint Applaud House Passage of Audit the Fed (jeenyuscorner.com)
- ‘Audit the Fed’ bill set for House vote this afternoon (jeenyuscorner.com)
- Breaking News:House Votes Overwhelmingly to Audit the Fed! (thelonestarwatchdog.com)
- House Votes Overwhelmingly to Audit the Fed! (chasvoice.blogspot.com)
- Ron Paul’s Latest “Audit the Fed” Bill Passes Committee Unanimously (reason.com)
- Ron Paul’s Latest “Audit the Fed” Bill Passes Committee Unanimously (fromthetrenchesworldreport.com)
- Ron Paul’s ‘Audit The Fed’ Bill Is Back, And This Time It Might Really Be Going Somewhere (businessinsider.com)
- We Can End the Fed! Whether Congress Wants us to or Not! (chasvoice.blogspot.com)
- Ron Paul’s final act: Audit the Fed hits the floor for a vote today (deathandtaxesmag.com)
- Ron Paul’s Latest “Audit the Fed” Bill Passes the House, 327-98 (reason.com)