Gold Will Go Above $2,000: Jim Rogers
Source: Business Intelligence††(11/13/09)
"Maybe I am wrong and it's different this time. But I doubt it."
During the talk, Jim Rogers said gold will reach $2,000 an ounce over the next decade as government's money printing will lead to higher prices and, on the supply side, no new mines have been opened for decades.
"It's very clear there is huge suspicion about paper money around the world. This suspicion is gathering steam. Governments are printing huge amounts of money. This has always led to higher prices. Maybe I am wrong and it's different this time. But I doubt it," said Rogers.
The legendary investor also said central banks have huge gold reserves above ground ó and they are less interested in selling now.
"If you adjust gold for inflation and go back to its former all-time high in 1980, gold should be over $2,000 an ounce right now if you want to say it's reaching new inflation adjusted all-time highs," he said.
"Despite gold's potential, I think I will make more money in other commodities such as silver, cotton, or coffeeóall of which are terribly depressed," Rogers said.
Rogers has spent a career being one step ahead of mainstream investment thinking. He rose to fame after cofounding the now-closed Quantum Fund with George Soros nearly four decades ago. During his 10 years with the fund, the portfolio gained more than 4,000%, while the S&P rose less than 50%.