Last week legendary investor Jim Rogers talked to Maria Bartiromo of Business Week about his outlook for commodities, including his outlook for the precious metals.
Jim co-founded the Quantum Fund with George Soros and retired aged thirty-seven, so he knows a thing or two about investing. He’s also a straight talker, which is somewhat rare in our industry, and I love it.
So where does Jim see the price of gold going? “I own gold and I have for a while. How high can it go? I fully expect it to be over a couple thousand dollars an ounce sometime in the next decade—I didn't say the next month, I didn't say the next year, I said the next decade—because paper money around the world is very suspect. But right now everybody's bullish on it, so I don't like to buy things when that's happening. But I'm not selling under any circumstances.”
“Everybody's printing so much money and people around the world are worried about that. But you also have central banks, which five years ago were selling gold, now buying. So that's a huge shift in the marketplace. Central banks are like lots of other people—they just follow the crowd. There are probably better commodities to buy than gold, but you can't tell that to central banks because they've got gold on the brain.”
“Throughout history, printing money has led to weaker currencies and higher prices for real assets. And there are many, many pessimists about the dollar, including me. So many pessimists that I suspect there's a rally coming. I have no idea why there should be, but things do usually rally when you have this many bears at the same time. I've actually accumulated a few more dollars. I mean, it's not a significant position, but I do own more dollars than I did a month ago. And we'll probably also have a gold correction because there's so many bulls on gold.”
Jim added “If you want to buy precious metal, I'd rather buy silver or palladium. Both are very depressed.”
To read the full article from Business Week click
here .
