Jim Rogers Says, Gold Will Hit $2,000 and USA Will Lose Status As The World’s Reserve Currency

Good Time To Buy Gold

Good Time To Buy Gold

Famed investor Jim Rogers is “quite sure gold will go over $2000 per ounce during this bull market.”Rogers’ confidence gold will continue to rally stems from a view the U.S. dollar is on its way to losing status as the world’s reserve currency.”Is it going to happen? Yes,” Rogers says. “I don’t like saying it [and] I’m extremely worried about it but we have to deal with the facts. America is not getting better [and] the dollar is going to be replaced just like pound sterling [was].”Rogers didn’t offer a timetable, and it’s likely gold would exceed $2000 per ounce if the dollar were to lose its reserve status.Still, “I wouldn’t buy gold today,” Rogers says. “I think I’ll make more money in other commodities, which are cheaper,” as discussed in more detail here.Among many others, Rogers is “worried about the fact the U.S. government is printing huge amounts, spending gigantic amounts of money it doesn’t have,” the investor and author says. “People are very worried [and] skeptical about paper money [and] looking for places to protect themselves. The best way is to buy real assets. [That] has always protected one during currency turmoil, and it will again.”

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Symbol “GLD” for Gold is a good buy betwween $85 and $90

I just found this site, and it is a very good read. Take a look on his opinion on Gold and paper currency devaluation. I think it could happen.

Decision Moose, by William Dirlam

Check out his site at http://www.decisionmoose.com

Moose favorite, gold, is tightly linked to the health of the financial system. This week, as the threat of money center bank nationalization, and the uncertainties that “quick and easy” solution entails from a global perspective, receded, the price of gold also fell. A new UK bank bailout program right before their major banks began reporting also calmed the fear. (Gold is a more global story than the other assets in the model. Its demand is more universal.)

Gold has had a nice run, surpassing its July ‘08 high last Friday, but this week it lost in five straight sessions. That the stimulus package and now the new budget are raising interest rates, and will most likely weaken the US economy, remains a disinflationary concern for gold bugs. It is to gold bugs’ outright dismay that Treasury Secretary Geithner, who was closely linked to the Lehman decision, seems to be wary of taking any further chances that could lead us to another precipice.

The good news is that by maximizing the cost of government while minimizing the economic benefit, we should eventually debase the currency something fierce. Moreover, the higher interest rates implicit in this strategy are already hitting the mortgage market, reducing mortgage values, pressuring bank assets and working to reinvigorate systemic fear.

So the model continues to hold gold. It is a near term bet that the Feds will get the bank bailout wrong, but it is also a long term bet that, even if they do get it right, paper currency will become worthless in the process.

If you missed the Moose signal ($89.59), GLD has considerable technical support between 85 and 90.  While it could go lower than that, getting in mid-signal in that range might be reasonable. At the moment, very little else seems attractive, even though I continue to feel that the chances of severe near term economic weakness and possibly even deflation far outweigh any alternative.

Gold Jumps to $967, Nearing Its Record

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MoneyBob Says "Buy GLD on Price Dips"

Treasuries and the U.S. dollar are not the only instruments benefiting from risk aversion.

Gold could be considered an even safer ‘safe haven’ if it weren’t for its susceptibility to speculative excess. But that didn’t stop strong demand for a safe haven and a store of value from pushing gold up to the $967/oz level on Comex more than 25% above its fair value assayed by physical supply and demand.

Uncertainty over the global economic outlook continues to send investors running for cover in cash-like instruments. But as sovereign credit risk rises around the world due to sharp increases of public debt, some investors are scurrying towards apolitical cash-like instruments.

Gold fits the bill as it is not tied to any particular country’s asset quality. In addition, rising inflation expectations (in the longer-term) have spurred demand for gold as investors worry massive government spending and possibly debt monetization will be inflationary, which would have deleterious effects on currencies as a store of value.

Despite likely pullbacks in the gold price this week as incoming data signals deflation, analysts believe gold will reach $1000/oz within 3 months due to ongoing uncertainty over the outlook for the global economy, inflation, sovereign debt and currencies.

Yet if there is a reduction of risk relating to sovereign defaults, gold could soften in the mid-term especially if central banks keep inflationary pressures under control, but once the economic recovery begins and the velocity of money picks up then comes the inflation.

We’re On The Eve Of Financial Destruction

Eve of Destruction: How the Financial Crisis Was Built Into the System

by Robert Kiyosaki Posted on Monday, November 24, 2008

How did we get into the current financial mess? Great question.

Turmoil in the Making

In 1910, seven men held a secret meeting on Jekyll Island off the coast of Georgia. It’s estimated that those seven men represented one-sixth of the world’s wealth. Six were Americans representing J.P. Morgan, John D. Rockefeller, and the U.S. government. One was a European representing the Rothschilds and Warburgs.

In 1913, the U.S. Federal Reserve Bank was created as a direct result of that secret meeting. Interestingly, the U.S. Federal Reserve Bank isn’t federal, there are no reserves, and it’s not a bank. Those seven men, some American and some European, created this new entity, commonly referred to as the Fed, to take control of the banking system and the money supply of the United States. Continue reading

Gold (GLD) – SPDR Gold Shares

On 10/16/2008 – Bought GLD at $80 per share.

SPDR Gold Shares (GLD)

SPDR Gold Trust (the Trust), formerly StreetTRACKS Gold Trust, is an investment trust. The Trust holds gold, and from time to time, issues the SPDR Gold Shares (Shares) (formerly streetTRACKS Gold Shares) in blocks of 100,000 Shares (Baskets) in exchange for deposits of gold and distributes gold in connection with redemptions of Baskets. The Shares represent units of fractional undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion. The sponsor of the Trust is World Gold Trust Services, LLC. The Bank of New York is the trustee of the Trust. HSBC Bank USA, N.A. serves as the custodian of the Trust’s gold.