Jim Rogers on Bloomberg October 7, 2009 discusses gold (Video follows excerpts and commentary).
I do think that during the course of this bull market gold is going to make new all-time highs adjusted for inflation. If you go back and adjust the old highs for inflation back in 1980 gold should be over $2000 an ounce.
It is important to understand the point Mr. Rogers is making in regards to gold. Yes, in terms of dollars-per-ounce we have hit an all-time high in gold. But, as Mr. Rogers stated, the dollar has literally lost about 50% of its value since the early 1980’s, so we have not yet reached the ‘all-time’ high in real US Dollar terms.
The longer term trend for gold is very bullish as governments continue to print money and the public confidence in their abilities to mitigate the crisis deteriorates.
However, if an investor is thinking about jumping in to gold with 100% of their net worth, then caution would be recommended, especially if the investor does not understand the reasons they are buying gold. We have seen gold move from as low as $880 just a couple months ago to $1050 today. With all of the shenanigans going on in the US Dollar, gold could just as easily drop $200 in the next few months, especially if we have upward momentum in the dollar and a re-collapse in the stock market.
Jim Rogers fan? Check out two more early October 2009 Jim Rogers Interviews at Value Investing Pro
Click here to subscribe: Join over one million monthly readers and receive breaking news, strategies, ideas and commentary.
Please Spread The Word And Share This Post
Mac Slavo Views:
Read by 82 people Date: October 10th, 2009 Website:www.SHTFplan.com
Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.
The content on this site is provided as general information only. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a financial interest in any company or advertiser referenced. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.
SHTFplan is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.