Raid on Ron Paul Dollar Maker
By Simon Constable
TheStreet.com Staff Reporter
11/16/2007 2:49 PM EST
thestreet.com
Secret Service and FBI agents raided the makers of Ron Paul silver dollars, Liberty Dollar of Evansville, Ind., early Thursday in a move likely aimed at stamping out an illegal currency.
The company started selling precious-metal coins stamped with an image of Paul earlier this year, with the first one made of silver available in July. Part of the marketing for the coins involved a promise that part of the sale price would be donated to the Paul campaign.
But if the raid results in the conviction of anyone involved, it is possible that the Paul campaign may have to return a cash donation made by Liberty Dollar.
The silver coins, which weigh one troy ounce, were sold for $25 each, with $5 being promised to help fund Paul's presidential bid. The gimmick fit in well with Paul's campaign promise to bring back the gold standard of monetary policy in which precious metals would back paper dollars.
So far, Liberty Dollar has donated $2,300 to the Paul campaign, a fact confirmed by both Paul's office and Bernard von NotHaus, who runs Liberty Dollar.
As a result of the raid, prices for the silver coins have skyrocketed, with Ron Paul silver dollars, which were available from Liberty Dollar at $25 on Wednesday, selling for $220 on eBay (EBAY - Cramer's Take - Stockpickr - Rating) recently. |
