Breaking from Moneynews.com Commodities investor Jim Rogers told CNBC that gold could very well soar to $2,000 an ounce during the next decade whether the economy rebounds or not. "Gold is going to go a lot higher over the next decade. It may slow down for a while because it's run up so dramatically here in the last few weeks. But gold's going to be much higher," Rogers told CNBC. "They've all been dead wrong, totally unadulterated wrong," he told CNBC. "Unemployment is higher now than it was before. Everything is worse instead of better. Let people go bankrupt. Let the system clean out and start over." He said investors are better off in commodities than stocks and bonds. Gold rallied to record highs above $1,325 an ounce in Europe on Tuesday as the dollar slipped sharply against the euro, with recent volatility in the currency markets boosting demand for the metal as a safe store of value. Spot gold hit a high of $1,328.05 an ounce and was bid at $1,325.50 an ounce at 5:38 a.m. EDT, against $1,315.20 late in New York on Monday. U.S. gold futures for December delivery rose $10.00 an ounce to $1,326.80, Reuters reported. Gold prices appreciated as the dollar tumbled to an 8-1/2 month low against a basket of six major currencies, pressured by broad-based demand for the euro. Gold is sensitive to moves in the dollar, as weakness in the U.S. unit tends to lift gold's appeal as an alternative asset and makes dollar-priced commodities cheaper for other currency holders. Meanwhile, the world's wealthiest people have responded to economic worries by buying gold by the bar — and sometimes by the ton — and by moving assets out of the financial system, bankers catering to the very rich told Reuters. Fears of a double-dip downturn have boosted the appetite for physical bullion as well as for mining company shares and exchange-traded funds, UBS executive Josef Stadler told the Reuters Global Private Banking Summit. "They don't only buy ETFs or futures; they buy physical gold," said Stadler, who runs the Swiss bank's services for clients with assets of at least $50 million to invest. © Moneynews. All rights reserved.
Jim Rogers: Gold Will Hit $2,000, Recession or Not
Rogers cited what he called the failed policies of the Federal Reserve and Treasury Department as the main reason the precious metal will soar. He said government efforts to bolster the economy have made things worse, not better."Adjusted for inflation it should be well over $2,000 now. When I say something like it's going to 2,000 in 10 years it's not a very dramatic statement given the state of the world. I'm sure it's a given," said Rogers, creator of the Rogers International Commodity Index.
Tuesday, 5 October 2010
Posts
