RON PAUL: The price of gold today is $1,580. The dollar during these last three years was devalued almost 50 percent. When you wake up in the morning, do you care about the price of gold?
BERNANKE: Well, I pay attention to the price of gold, but I think it reflects a lot of things. It reflects global uncertainties. I think people are -- the reason people hold gold is as a protection against what we call "tail risk" -- really, really bad outcomes. And to the extent that the last few years have made people more worried about the potential of a major crisis, then they have gold as a protection.
PAUL: Do you think gold is money?
BERNANKE: No. It's not money.
PAUL: Even if it has been money for 6,000 years, somebody reversed that and eliminated that economic law?
BERNANKE: Well, you know, it's an asset. I mean, it's the same -- would you say Treasury bills are money? I don't think they're money either, but they're a financial asset.
PAUL: Well, why do -- why do central banks hold it?
BERNANKE: Well, it's a form of reserves.
PAUL: Why don't they hold diamonds?
BERNANKE: Well, it's tradition, long-term tradition.
PAUL: Well, some people still think it's money.