Gold Prices Will Double in Next Year - Jim Rogers

[Maurice Bedard]

Agreed that gold has emerged as the best asset class among bullion traders, central bankers and families across the world, how far can the yellow metal price surge?

One of the avid proponents who is arguing that gold price will surge past $2,000 soon is the legendary commodities investor Jim Rogers. Rogers, chairman of Singapore-based firm Rogers Holdings, says gold prices are booming because currencies across the world are dropping and the US dollar is collapsing. His latest forecast: gold will touch double the current price—around $1,150. Meaning, Rogers says gold will surge to $2,300 per ounce in the coming months.

But it is easy for renowned investors like Rogers to make forecasts like this. Rogers is a big commodities investor. He invests basically in agricultural commodities. He is going gaga over his commodities investments in the hot destination he loves, China. But is Rogers investing in gold these days? No, not to my knowledge. Investors like Jim Rogers love gold, but they hate to invest in gold at this high price.

Read more: Jim Rogers loves gold, but hates to invest in gold | 22 November 2009 | www.commodityonline.com

[bloominga]

I've been reading as much as I can before making a decision on what is the best way to go where gold is concerned. There is the issue of how much of what money you have should be used to buy gold.

Some of the bartering and trading blogs have said that if food becomes too scarce, having a lot of gold will be no good. If you have a bushel of oats or a sack of flour you could trade it but if all you had was gold, it would be hard to get rid of it in exchange for food. Eating gold is hard on the teeth and even harder to digest.

On the other hand I'm sure there will be plenty of wayws on a 'black market' to trade gold for a myriad of things. But then you will give 4-10 times the worth in gold just to get the food.

I'm still researching but I think that gold may go down but then will go up and continue climbing and who knows where it might go.

One opinion in the comment from a blog stated that he believes the price of gold at the present time is being manipulated to allow investors to stockpile at a low price. When 'the time is right' it will begin going up but supplies will be very limited. At least supplies will be limiited for buyers such as the likes of Main Street folk.

[zander]

With the decline of the dollar as we know it having a reserve of physical gold as in coins or boullions is a good hedge for everyone. And it is true that gold prices may well be manipulated as reports show that gold is up due to high demand but what most people don't realize is that the purchasers of gold currently are Long Term Speculators buying the lions share as apposed to industry and investment purchases, this in and of itself should be a HEADS UP to people. Those with the money are buying a lot.

[gumbii2662]

My dad told me 16 years ago that he wasn't putting all his retirement money into IRAs and stocks, etc. He bought gold back then and has continued to do so... he may or may not even have some buried in several secret locations. He doesn't have ALL his retirement plans pinned on gold, but wants to have actual, physical gold in the event that our economy totally collapses and we're suddenly forced to deal with, say, China. Sure, gold won't do you as much good as you'd think when it comes to buying necessities, but there's no question that you can take that gold to any foreign market and sell it for whatever currency will help you out.
I used to laugh a little that my dad actually buried gold, but if we ever fold to China, I'm guessing they'd be far happier to trade me some yen for my gold than my worthless dollar.

[Maurice Bedard]

You father is VERY a smart man. The rich have been doing this for the last 10 years as the minions take out mortgages and more debt. If any of you want a Chance to make it in this new world and possibly thrive, you need to study what the rich and honest big time investors are doing right now.

This same BS happened in the 1930'3 during the 1st great depression, yet most of you dont know this history. Big mistake I say, but who am I??? A jerk that tells the truth or an honest man who pulls no punches?

If I can recommend any financial guru to listen to it would be Jim Rogers and Peter Schiff. They were saying buy gold when it was $300 an ounce as people on Fox would laugh at them. They would say Fannie Mae and the subprime market is crashing in 2005 and the mediaa and their paid puppet experts also laughed at them.

If you do not want to think, follow corporate media and laugh at these guys who say buy gold. If you are not and getting educated on you own, welcome to the reality club of living life with your own mind. The air is fresh and the future looks bright when one is awakened to the true world in which we live.

[Garry]

It's to late to buy gold, I think it would be foolish.

[purdy59]

My wife tried to get me to buy gold anytime it got under $300.00 an oz.I should have listened.

[LostFaith]

My humble opinion is just that, an opinion. People are calling for gold investment for a reason, ESPECIALLY the ones who are already in the commodities game. it's for a quick return on investment. People are in panic and immediately talk of gold. That's your business. Buy all the gold you can. But remember you are doing so probably because of the fear instilled in you of a complete economic collapse. You as a common citizen are not doing it for investment, as history will show you its foolish in terms of real return. You are bound to be influenced when you suffer personal hardship and this is the perfect site to be infected by that. As a matter of opinion, some people even "hope" for things to get worse because of the hardship they have experienced. It's human nature maybe, I am not really sure.

The economy will rebound. In the meantime, we are merely trying to decide what predictions we want to believe. Ironically, do you know what our own Government's biggest weapon is? Fear. Think about that.

[LostFaith]

Beware the 4 new asset bubbles - Jan. 25, 2010

Again, for those who believe that gold is the next bubble to burst. Just predictions here, but food for thought none the less.

[davephx]

I disagree with some of the asset bubble article, especially how stock values are determined since the Shiller model uses a 10 year earnings averaging which includes the two in a decade huge declines. Using more honest valuation models the stock market is very reasonable or under valued especially with the strong earnings growth predicted for 2010.

But I totally agree with the Gold Bubble we are in and could have a huge decline was in the 80's and stayed mostly flat for decades until recently.

Inflation is a long way off, and with recent crisis, Treasuries (U.S. Dollar) is the safest haven in the world and funds pour into Treasuries with any crisis (Dubai the latest). We are still having about 3 times the number of buyers trying to buy Trasuries vs the supply.

[themark]

New to this forum but have been following Rogers probably longer than many here so I will comment.

Remember that Jim Rogers used to run the Quantum fund with George Soros - both of these guys are pros and will talk their book any chance they get, so take his comments with a grain of salt. Also remember that Rogers thinks on a VERY LONG TERM timeline, so yes over 30 years he probably think gold will go higher; on TV Rogers is not good at conveying how long term he is thinking, he makes it sound like he is buying or selling this or that next month - but in reality he may really mean 5 years from now!

Buying Gold now is not an inflation play, it is a play on FEAR that is where gold performs best; if inflation was such a huge problem why is platinum, oil, etc. not skyrocketing with gold the last year? I do agree that their is some inflation, just not enough to justify gold going from 1200 to 1600 in the last 6 months - that is a fear play; and silvers rise is simply speculation, be careful there.

The true inflation play has always been real estate - and think about it no capital gains if its your residence! Gold you will be taxed 30 Percent plus, and gold performed absolutely terribly through the last inflation of the past 10 years before the mortgage crisis while the dollar lost half its value - I wouldn't call that an inflation hedge...

That said I am a gold bull, but not buying at these levels, and I doubt Rogers is either!

[themark]

Buy all the gold you can. But remember you are doing so probably because of the fear instilled in you of a complete economic collapse. You as a common citizen are not doing it for investment, as history will show you its foolish in terms of real return.

So what is the worlds largest gold holder (Central Banks) afraid of?

If you had bought gold in 1998 and held it to now I don't think I would call that a foolish investment.