Friday, January 1, 2010

Jim Rogers Gold Bubble 2010

Jim Rogers Gold Bubble 2010

Jim Rogers was talking investing in 2010 recently, and he said the continual concerns about the possibility of a gold bubble are unfounded, and still maintains the position that gold will eventually reach $2000 an ounce, although when that will happen of course can't be known.

Rogers added that gold is going up in price because of the falling value in the U.S. dollar, concerns over inflation, consumption of gold by China and India, and the buying up of gold by central banks.

The only bubble Jim Rogers is concerned about is one in the U.S. government bond market. Otherwise he said there isn't another bubble he sees emerging anywhere.

If there's a reason for gold prices rising, there isn't a bubble, according to Rogers. It's when everyone starts buying gold without knowing why is when you need to be concerned about a gold bubble.

As of now, the majority of people on the street haven't even looked to gold as an investment, so concerns that way are irrelevant.

For the short term, the price of gold could be affected by a temporary strengthening of the U.S. dollar, which could drive prices down for a little while. Other than that, Jim Rogers and most others believe gold will continue on its upward run in price for a long time ahead.

Jim Rogers Gold Bubble 2010

1 comment:

Anonymous said...

I tend to agree with Rogers's assetment. I don't see gold being in a bubble either. I don't know if it will hit th 2grand mark in 2010 but looking at how it's risen over the past two years it's hard not to imagine that possibility. The point about when the street starts buying gold not know why is interesting. I think when we reach that point the street won't have the ability to buy gold. In fact, I'm not sure that we haven't already gotten to a point where the average person on the street can afford to buy gold given the amount of debt that the average person carries month to month.

I think the metal to watch in this case will be silver.