Billionaire investor Jim Rogers recently said the American government is attempting to create an illusion the economy is improving in light of the upcoming elections.
Talking to India's Economic Times, Rogers stated, "You have the American government spending staggering amounts of money right now, printing a lot of money and getting ready for the election."
"You have to remember the election in America in November...they do their best to get the economy juiced up so they can win the election," he concluded.
The problem is this will be even more devastating economically after the elections, with the fallout of the increasing money supply sure to wreak havoc on the economy.
"2013 and 2014 are what I am most worried about because this year everybody is trying to just get through the next election...Everybody is going to do their best to get us through the election. Watch out for 2013," said Rogers.
Rogers says he continues to hold onto gold, and hopes it consolidates more before continuing its upwards price movement.
Showing posts with label Jim Rogers Gold. Show all posts
Showing posts with label Jim Rogers Gold. Show all posts
Saturday, January 14, 2012
Thursday, December 16, 2010
Jim Rogers, Peter Schiff Remain Bullish on Gold
Jim Rogers and Peter Schiff have been gold bulls for some time, and also agree that the value of U.S. dollar will continue to diminish over time based on the misguided policies and practices of the Federal Reserve.
Rogers continues to maintain gold will rise for years to come, and believes it should be trading at about $2,000 an ounce, comparing to the the former all-time high of $850 an ounce after being adjusted for inflation.
Even so, he still says gold will eventually reach $2,000 sometime in the next decade.
Peter Schiff has been even far more optimistic, predicting gold price could rise as high as $5,000 an ounce. Schiff also believes the rise in the value of the U.S. dollar is just a temporary bump and it'll resume its loss in value.
Both oppose the policies of the Federal Reserve and see U.S. bonds as extremely negative at this time.
Concerning other commodities, Rogers still likes zinc and cotton, with cotton putting pressure on many companies with heavy exposure to it and lower margins.
He also likes silver, which many commodity experts think will be the trade of the next decade. He believes it could definitely reach $50 an ounce again, and possibly go much higher.
Rogers continues to maintain gold will rise for years to come, and believes it should be trading at about $2,000 an ounce, comparing to the the former all-time high of $850 an ounce after being adjusted for inflation.
Even so, he still says gold will eventually reach $2,000 sometime in the next decade.
Peter Schiff has been even far more optimistic, predicting gold price could rise as high as $5,000 an ounce. Schiff also believes the rise in the value of the U.S. dollar is just a temporary bump and it'll resume its loss in value.
Both oppose the policies of the Federal Reserve and see U.S. bonds as extremely negative at this time.
Concerning other commodities, Rogers still likes zinc and cotton, with cotton putting pressure on many companies with heavy exposure to it and lower margins.
He also likes silver, which many commodity experts think will be the trade of the next decade. He believes it could definitely reach $50 an ounce again, and possibly go much higher.
Thursday, December 9, 2010
Jim Rogers Says Producers are New Money Centers
Talking recently at the Reuters 2011 Investment Outlook Summit in New York, Jim Rogers continued his mantra of high gold and commodity prices, along with the probability financial centers like London and New York will shrink in influence, and countries with strong commodity and/or raw material resources and focus will flourish.
Rogers maintains his prediction of gold rising above $2,000 an ounce and the Chinese renminbi becoming the strongest currency in the world.
"The city of London and Wall Street are not going to be great places to be in the next two or three decades. It's going to be the people who produce real goods," said Rogers.
"Throughout history we've had long periods when the financial centers were in charge," he added. "But we've also had long periods when people who produced real goods were in charge - the farmers and the miners."
Those in the media interviewing Rogers always smile at Rogers when he mentions raw materials, and especially farming, as a major force going forward, thinking he's joking with them when in reality he's totally serious.
Rogers cited Canada as a place to invest and which will continue to grow strong. He didn't mention them this time around, but Brazil is another obvious country which will strongly benefit from commodities, along with Australia, if they don't impose draconian taxes and regulations on miners.
The U.S. could also become important in the area of natural gas, especially as exporters, but they'll have to build out their infrastructure in order to take advantage of the soaring demand for natural gas.
Rogers maintains his prediction of gold rising above $2,000 an ounce and the Chinese renminbi becoming the strongest currency in the world.
"The city of London and Wall Street are not going to be great places to be in the next two or three decades. It's going to be the people who produce real goods," said Rogers.
"Throughout history we've had long periods when the financial centers were in charge," he added. "But we've also had long periods when people who produced real goods were in charge - the farmers and the miners."
Those in the media interviewing Rogers always smile at Rogers when he mentions raw materials, and especially farming, as a major force going forward, thinking he's joking with them when in reality he's totally serious.
Rogers cited Canada as a place to invest and which will continue to grow strong. He didn't mention them this time around, but Brazil is another obvious country which will strongly benefit from commodities, along with Australia, if they don't impose draconian taxes and regulations on miners.
The U.S. could also become important in the area of natural gas, especially as exporters, but they'll have to build out their infrastructure in order to take advantage of the soaring demand for natural gas.
Tuesday, November 9, 2010
Goldman (NYSE:GS) Supports Bernanke Debacle as World Opposes it
Anyone who understands the cause-and-effect of printing money, or as Fed chairman Ben Bernanke now likes to label it: quantitative easing, knows the consequences of inflation, debasing the dollar and creating unsustainable debt levels. For some reason Goldman Sachs (NYSE:GS) has come out in support of Bernanke in this matter. Figures.
Even though Bernanke admits the debt in the U.S. is indeed unsustainable, he continues to create it through printing his money. As commodity investor Jim Rogers has stated a lot: he doesn't know how to do anything else.
Major economies like China, Germany and Brazil have been highly critical of the decision.
Goldman chief economist Jan Hatzius said in a note to clients, "The move will spur gross domestic product growth and reduce the risk of deflation.
“The widespread hostility to the Fed’s actions is misplaced,” Hatzius wrote. “Downside risks to the economic outlook have declined significantly. U.S. inflation is unlikely to become a problem for years.”
Of course it's simplistic to imply the only concern is inflation, as there are many other concerns, including the fact it didn't work before, and is playing havoc with the economic recovery in emerging economies in relationship to their currencies.
Hopefully Ron Paul and a few of his new allies in Washington will work hard to help people understand the disaster the Federal Reserve is, and successfully force an audit upon the central bank.
For gold investors, it's just another good reason to remain faithful to the yellow metal, as it's going to continue to go higher because of the poisonous monetary policy of Bernanke and the Fed.
Even though Bernanke admits the debt in the U.S. is indeed unsustainable, he continues to create it through printing his money. As commodity investor Jim Rogers has stated a lot: he doesn't know how to do anything else.
Major economies like China, Germany and Brazil have been highly critical of the decision.
Goldman chief economist Jan Hatzius said in a note to clients, "The move will spur gross domestic product growth and reduce the risk of deflation.
“The widespread hostility to the Fed’s actions is misplaced,” Hatzius wrote. “Downside risks to the economic outlook have declined significantly. U.S. inflation is unlikely to become a problem for years.”
Of course it's simplistic to imply the only concern is inflation, as there are many other concerns, including the fact it didn't work before, and is playing havoc with the economic recovery in emerging economies in relationship to their currencies.
Hopefully Ron Paul and a few of his new allies in Washington will work hard to help people understand the disaster the Federal Reserve is, and successfully force an audit upon the central bank.
For gold investors, it's just another good reason to remain faithful to the yellow metal, as it's going to continue to go higher because of the poisonous monetary policy of Bernanke and the Fed.
Saturday, June 5, 2010
Marc Faber, Jim Rogers Continue to Hold Gold
Confusion over the daily fluctuation of the markets based on little snippets and tidbits of news can drive even the most astute trader or speculator batty, but in the case of gold, investors and pundits like Marc Faber and Jim Rogers aren't confused at all, and they both say they have no intention of selling their gold, and are always on the lookout for dips so they can acquire more.
Without getting into too much detail, the reasons these guys continue to do this is there overall understanding of the macro-economic circumstances.
If you understand the macro-economic situation affecting any investment, and gold in particular, the daily ins and outs of the market are largely irrelevant, unless you're trying to make a quick killing, which hopefully you're not. Even the day traders can't do that great in attempting to time the market, and very few are that successful, even though there is always the glamor attached to being involved in it.
In general, macro-economics as it relates to gold, will deal with issues like national debt, inflation, paper currency and the practices of central banks; all of which the above are highly affected by.
For example, around the world now central banks refuse to implement austerity measures into their practices, as they're committed to bailing out whatever major problems occur in order to save the various economies or industries they deem in need of saving.
That means they'll have to print money and government debt will continue to rise to astronomical levels.
Another indicator is job creation in the private sector, which is just above zero in the United States, with the government being the almost sole creator of jobs, which means they're propping up the economy while creating nothing of value that has a chance to last.
This is why Faber and Jim Rogers continue to hold gold. The central banks and governments have become addicted to these practices even more than in the past, and it's not sustainable by any stretch of the imagination.
Consequently, trust in paper currencies is eroding around the world, and the only reason the U.S. dollar is stronger is because the euro isn't. It's not because it has some type of safe or mystical power which makes it a place of safety. It's only relative in the sense when you compare to the condition of most other currencies in the world, which for the most are even more unstable.
So within these general parameters, gold can be counted on to continue to move upward in price, no matter what type of temporary correction will take place.
Some clueless analysts and pundits try to make it look like gold is in a bubble, but it's not even close, as until the general population gets into the gold market and drives up prices without knowing or understanding the fundamentals, similar to clueless house flippers and those with HELOCs in the housing bubble, where they kept refinancing or bidding up the prices of houses like it was a game with no end, not understanding it had become a ponzi scheme which was about to come falling down around their heads.
It seems the average or everyday investor hasn't even began to invest in gold, so until that happens it won't be those who bid up the price of gold, but the things mentioned above.
There will of course be the traders moving in and out of the market which will drive gold prices up over short periods of time, and then the price gets a correction when they sell their positions to cover other unrelated investments they've lost on.
Only when the price of gold goes up at unrealistic levels for no apparent reason will be be in a bubble, and that won't happen until far into the future, as people in general still stay away from the yellow metal, as they fear that which they don't understand, and only after years of financial reporting on it and they feel safe, will they enter in. At that time the market will be close to a top, and then they'll start to bid gold prices up based on nothing else than everybody has caught gold fever.
So that's when and how a gold bubble will occur, and until then we should feel confident gold prices will continue onward and upward.
This is why Marc Faber and Jim Rogers, among others, continue to hold and invest in gold, and will continue to do so for many years to come.
Without getting into too much detail, the reasons these guys continue to do this is there overall understanding of the macro-economic circumstances.
If you understand the macro-economic situation affecting any investment, and gold in particular, the daily ins and outs of the market are largely irrelevant, unless you're trying to make a quick killing, which hopefully you're not. Even the day traders can't do that great in attempting to time the market, and very few are that successful, even though there is always the glamor attached to being involved in it.
In general, macro-economics as it relates to gold, will deal with issues like national debt, inflation, paper currency and the practices of central banks; all of which the above are highly affected by.
For example, around the world now central banks refuse to implement austerity measures into their practices, as they're committed to bailing out whatever major problems occur in order to save the various economies or industries they deem in need of saving.
That means they'll have to print money and government debt will continue to rise to astronomical levels.
Another indicator is job creation in the private sector, which is just above zero in the United States, with the government being the almost sole creator of jobs, which means they're propping up the economy while creating nothing of value that has a chance to last.
This is why Faber and Jim Rogers continue to hold gold. The central banks and governments have become addicted to these practices even more than in the past, and it's not sustainable by any stretch of the imagination.
Consequently, trust in paper currencies is eroding around the world, and the only reason the U.S. dollar is stronger is because the euro isn't. It's not because it has some type of safe or mystical power which makes it a place of safety. It's only relative in the sense when you compare to the condition of most other currencies in the world, which for the most are even more unstable.
So within these general parameters, gold can be counted on to continue to move upward in price, no matter what type of temporary correction will take place.
Some clueless analysts and pundits try to make it look like gold is in a bubble, but it's not even close, as until the general population gets into the gold market and drives up prices without knowing or understanding the fundamentals, similar to clueless house flippers and those with HELOCs in the housing bubble, where they kept refinancing or bidding up the prices of houses like it was a game with no end, not understanding it had become a ponzi scheme which was about to come falling down around their heads.
It seems the average or everyday investor hasn't even began to invest in gold, so until that happens it won't be those who bid up the price of gold, but the things mentioned above.
There will of course be the traders moving in and out of the market which will drive gold prices up over short periods of time, and then the price gets a correction when they sell their positions to cover other unrelated investments they've lost on.
Only when the price of gold goes up at unrealistic levels for no apparent reason will be be in a bubble, and that won't happen until far into the future, as people in general still stay away from the yellow metal, as they fear that which they don't understand, and only after years of financial reporting on it and they feel safe, will they enter in. At that time the market will be close to a top, and then they'll start to bid gold prices up based on nothing else than everybody has caught gold fever.
So that's when and how a gold bubble will occur, and until then we should feel confident gold prices will continue onward and upward.
This is why Marc Faber and Jim Rogers, among others, continue to hold and invest in gold, and will continue to do so for many years to come.
Monday, May 17, 2010
Jim Rogers: Gold Going Much Higher
Commodities investing expert Jim Rogers continues his mantra on being a bull for most commodities for the next decade or so, and he reiterates that position with gold, which he says will continue to be considered a safe haven again inflation from the weakening of paper currencies.
With faith in fiat currencies continuing to weaken, gold has reached record levels against a number of currencies, including the euro, US dollar, Swiss franc and British pound.
In a recent interview with Reuters, Rogers said this about his outlook for gold: "I certainly expect gold to go much higher over the next few years. Paper money is going to be debased and the price of real assets will be enhanced."
Rogers doesn't just believe this about gold, but many of the other raw materials as well.
Along with a growing number of analysts and economists, Rogers knows the extraordinary and unprecedented level of debt being incurred by nations will be devastating to currencies and result in strong inflation.
Once the overall market begins to understand how large the credit expansion has been, we could see commodity and gold prices surge beyond levels some that are optimistic even think they will.
With faith in fiat currencies continuing to weaken, gold has reached record levels against a number of currencies, including the euro, US dollar, Swiss franc and British pound.
In a recent interview with Reuters, Rogers said this about his outlook for gold: "I certainly expect gold to go much higher over the next few years. Paper money is going to be debased and the price of real assets will be enhanced."
Rogers doesn't just believe this about gold, but many of the other raw materials as well.
Along with a growing number of analysts and economists, Rogers knows the extraordinary and unprecedented level of debt being incurred by nations will be devastating to currencies and result in strong inflation.
Once the overall market begins to understand how large the credit expansion has been, we could see commodity and gold prices surge beyond levels some that are optimistic even think they will.
Wednesday, April 7, 2010
Jim Rogers: Keep Your Gold
Jim Rogers on Gold
Jim Rogers reminded investors in gold to hold onto it and not sell, as he maintains gold could go as high as $2,000 over the next 10 years, and those discarding it will miss out on a lot of profits.
Of course it also must be considered as the best place of safety at this time, and there is no paper currency close to it for those who understand the staying power of gold.
For the first time in a long time, gold has fought the U.S. dollar as the haven of choice, and even when the dollar goes up, there have been days where gold has risen with it, defying the usual inverse relationship between the two where gold will go up when the dollar goes down, and the opposite.
When they go up together, that means a sizable number of people and/or institutions consider gold to be safer than the dollar, and that's quite a change from the normal behavior of those looking for safety.
Jim Rogers reminded investors in gold to hold onto it and not sell, as he maintains gold could go as high as $2,000 over the next 10 years, and those discarding it will miss out on a lot of profits.
Of course it also must be considered as the best place of safety at this time, and there is no paper currency close to it for those who understand the staying power of gold.
For the first time in a long time, gold has fought the U.S. dollar as the haven of choice, and even when the dollar goes up, there have been days where gold has risen with it, defying the usual inverse relationship between the two where gold will go up when the dollar goes down, and the opposite.
When they go up together, that means a sizable number of people and/or institutions consider gold to be safer than the dollar, and that's quite a change from the normal behavior of those looking for safety.
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