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.

Watch Jim Rogers on Bloomberg – October 2009

Hat Tip to All Things Jim Rogers

Jim Rogers fan? Check out two more early October 2009 Jim Rogers Interviews at Value Investing Pro