Jim Rogers, Soros, Gold Bulls

Jim Rogers and George Soros Remain Gold Bulls

Jim Rogers, George Soros, and others promoting gold as a solid investment for the years ahead, have come under attack recently from some who say he is only pushing the issue to drive up the price of gold so he can exit his gold holdings with a big profit.

But I think Rogers invested in gold a long time ago, and he has many entry points where he could exit gold now and probably would be close to doubling his money in many cases.

More disturbing to me is the somewhat toothless attack from some guy named Charles Kevin, an analyst in Beijing who claims Rogers isn't basing anything he says on the underlying fundamentals. But that's just plain igorant, and possibly untrue, depending of the integrity of the guy. He may just be a terrible researcher or hasn't taken much time to listen to what Rogers has said; especially about gold.

How many times has Rogers stated that the continual printing of money, the stimulus programs, inflation, and the economic weakness all contribute to the price of gold. If those aren't fundamentals what is Kevin talking about? Only a worshipper of Keynes could assert these weren't fundamentals in relationship to gold. If these aren't fundamentals, then what are? Does this guy think the jewelry business in India is a fundamental driver of gold? As if supply and demand in that very limited market has anything to do with the price of gold in times like these.

Now Soros has said he thinks gold is in a bubble, but then he continues to buy gold in huge amounts while making those statements. That wouldn't make sense if he didn't believe gold was going to go up in price, although you can of course make money on gold whether it goes up or down.

But even gold companies have been dropping their hedge positions, noting they feel even in conditions where gold prices could receive some downward pressure it has support under it, and it's not going to collapse any time soon from market pressures.

Jim Rogers and George Soros Remain Gold Bulls

Marc Faber: Gold Versus Currencies

Marc Faber on Gold and Currencies

Talking about gold recently, Marc Faber stated he believes that gold prices bottomed out as of February 5, and we'll continue to see them rise.

Faber added that two of the more important currencies in the world - the U.S. dollar and the euro - will continue to to drop in value against gold, and "all" paper currencies will do the same over a period of time.

There's nothing to suggest any of this will change any time soon either, as reports continue to conclude we're far from being over the recession, and there's a lot of pain to come, a climate gold investment and gold prices thrive in.

Marc Faber on Gold and Currencies

Few People Invested in Gold

One of the major reasons cited by a number of experts as to why we're not in a gold bubble is the fact that very few in main street America have gravitated toward gold as a key part of their investment strategy.

When the time comes when people respond to gold increasing in price to the point it can't be ignored, a lot of the upward movement will already have happened, and the resultant surge in the price of gold at that time probably will be a bubble. But for now, it's not even close to that point, and little is changing in the printing of money by central banks around the world to change gold from being an important investment over the next decade.

Investors like Jim Rogers say they wouldn't think of selling gold any time soon, and once it drop in price some, are ready to buy up even more.

Even so, silver is probably the better way to invest in commodities and precious metals at this time, as it's still 70 percent off its highs, while gold continues to flirt with highs on a daily basis.

Other good commodity investment vehicles to participate in for most would be commodity indexes, according to Jim Rogers.

Rogers also believes investors should familiarize themselves with foreign currencies, as there will be a lot of opportunities in the years ahead to make money in that commodity sector as well.

Rogers has been buying the U.S. dollar, even though he knows its doomed over the long term. He believes there will be a nice upward movement based solely on how bearish most investors are in the greenback at this time. Over the long term, he still remains bearish on the U.S. currency.

Chinese Buying Up More Gold

As gold prices hit new record highs, that hasn't deterred the Chinese government and individual Chinese investors from continuing to plow a lot of money into the yellow metal.

And the fact that retail jewelry built from gold has taken a hit has largely been shrugged off by the market, as that hasn't really been much of a factor ever in determing gold prices, especially in volatile economic times.

Consequently, investment in gold is the only driver of gold prices at this time, and with the economic conditions we face, there's no doubt gold prices will rise for many years to come, with occasional and obvious corrections as it goes along. But the curve will continue to be up with occasional dips in gold prices.

The Chinese government is also looking for places to place their money, and have been buying up large amounts of gold for some time, although with all of that, there's plenty of room for more, as at this time only about 1.6 percent of the china's forex reserves are held in gold.

Most Chinese believe their is significant upside to gold prices, and aren't going to cut back in their acquisitions of gold any time soon.