'Legendary investor Jim Rogers talked to First Financial Daily in Shanghai recently. He shared his outlook for 2012 and was extremely bullish about gold and agricultural products. Here is what Rogers said in the interview, followed by our comments about how we can invest in accordance with his views: The price of gold is indeed correcting, but I think that correction will continue. I am not surprised that gold prices remain at $1,400-1,500/oz. Gold will fall to $1,300/oz. in this wave of adjustment and I will buy then. And if gold fell further to $1,200/oz., I will buy more if I have money.' http://seekingalpha.com/article/319257-jim-rogers-is-bullish-on-gold-and-agriculture-long-term
Faber's Latest Rant On Global Monetization Wars 'There is a little for everyone in Marc Faber's latest appearance on CNBC. The infamous boomer (and doomer) believes (as we do) that today's downgrades are less significant for stocks (at least until the realization that banks and more importantly insurance companies are about to be cut as well - keep a close eye out on Allianz and Generali (of ASSGEN fame) - it is not incidental that they are abbreviated to A&G, just one letter away from our own AIG) as it is largely priced in but the equity market's rally of the last few weeks (with its lack of breadth and volume) is strongly suggestive of a bear-market rally (as opposed to the decoupling bull market that so many hope for). His view quite simply is that the ECB has undergone a backdoor monetization and without this the EUR would be significantly stronger especially given the huge short-interest (though he sees the trend for EUR is down). Some highlights include: EUR weakness may help exports but the debt servicing costs of major European firms with huge US denominated debt wil suffer greatly, most European nations should be CCC-rated, nominally European stocks will outperform and holding quality dividend paying companies is preferred, valuation is practically impossible given ZIRP, and finally noting the irony, the worse the global economy gets (and the Chinese economy suffers), the more money printing will occur lifting nominal equity prices while real economies stumble and standards of living drop, so hold gold.' http://www.zerohedge.com/news/fabers-latest-rant-ecbs-back-door-monetization
Can you explain to a non-expert like me what in your opinion is going to drive it to those prices in the near term? A lot of people are predicting a short term rally followed by a much deeper correction. This time of the year isn't exactly good for the metals either. Also Silver seems to be failing to build on gains that lift it above $30.
I think what he means is that alot of Spanish and Italian debt comes due in the next couple of months and there could be a banking crisis again if the ECU doesn't do something!
So we are basically gambling on the ECB doing "something" and inflating the debt mountain even more? That's what we thought they would do in early December. This is basically what the rally depends on.
Yup...that's how I see it. Also, somewhere along the line the Obama administration has to throw some money at the economy (or more likely, get the Fed to) to increase their chances of getting re-elected. But even if they did that, I assume it would not start till at least late spring.
'While it is early to determine if the ongoing breakout is finally in anticipation of upcoming episodes of direct and indirect monetization by the Fed, ECB, or any of the many other pathological currency diluters in circulation, it is obvious that precious metals have found a new bid in recent days. Is this then, the beginning of the next surge in gold and silver to record highs? It remains to be seen, but one entity, the Duet Commodities Fund which was one of last year's best performers, has already made up its mind. 'Our central forecast in gold remains constructive as our long term view targets $2,500 in 2012. Our core view is that gold will head higher to the $2,500 range driven by consequential USD weakness once the EU crisis dissipates and the US steps into the limelight. A weaker USD is not undesirable in the world order as everyone (especially China) understands that the US consumer is the driver for global consumer confidence and consequential consumption led demand." Wow - someone in this market can actually think one step ahead of the inevitable ECB LTRO/monetization, and realize that the Fed will in turn have to escalate to that escalation. Gold, er golf clap.' http://www.zerohedge.com/news/one-2011s-best-performing-hedge-funds-sees-gold-2500-shortly
both the ECB and the USA has no choice but to monetize otherwise the whole house of cards comes crumbling down!
well looks like gold is once again aproaching 1750 so looks like you guys were right of it not falling
It hit 1750 just after 9.00 GMT this morning , then fell back sharply --- profit taking? It is now attacking 1750 again and if it closes at this level , I envisage it running very quickly to 1800 . I imagine it pausing there , perhaps until we start to hone in on the gruesome mess that is Spain --- debts will be being "called in " this month .
actually its better if it hesitates a little at first so that it can build a base...if it goes up too quickly then it can fall back rather harshly as it did 6 months ago!
I started buying back in 2001....I cant rememeber the price but it was around 400 dollars I think......I kept buying up until it hit 1,000 and after the collapse in 2008 I bought a little more!
Hit 1760 and has fallen back to 1753 as I write . If it closes above 1755 tomorrow , the breakout looks likely .
Wow. It is indeed truly amazing how perfect your insight was regarding past events, when your predictions as to future events has been so faulty.
http://gold-silver-market.blogspot.c...e-in-2012.html As much as I value Peter Schiff's opinion (I am a paid subscriber to his daily radio show); I am ever so slightly weary of his precious metals predictions. He has been a bit over-anxious to boost the next gold/silver boom, IMO. Plus, he makes money selling gold/silver...so his bias on this is questionable. I still think he REALLY knows his stuff on economics. And I agree the future for precious metals is very bright. Maybe very, VERY bright. But I listen to Marc Faber and Jim Rogers more on precious metals then Peter Schiff. They have a slightly better track record and (to my knowledge) do not make money on selling gold/silver - so are perhaps less biased.
Would someone please tell me why the U.S. had these huge jobs gain numbers, stocks are up...and yet gold/silver and the greenback are down and up respectively?
as soon as I joined this site I said buy gold....back then it was around 1200....maybe even lower....its up some 40% since then......you were saying?
nobody can predict with accuracy the short term as there are always unforseen events...but long term gold will rise and rise dramatically!
Firstly Gold was at a resistance level and unable to break through and secondly "good" news means no QE3 (in the minds of the herd anyway), which means a "stronger" dollar and so people took profits. To be honest I just look at these things as buying opportunities. The fundamentals - that is dollar collapse and major fleeing into metals (real money) - is as certain as it was yesterday and the day before.
Gold would have value if for no other reason than it allows a private citizen to escape financially from the poor decisions our governments make.
Job gains? What kinds of jobs, are they temporary jobs, are these people making more money than they had with their last one or is it less? There are way too many unanswered questions in these so-call new jobs that they claim was created. We are getting close to the election and Obama wants to look good so that he stands a better chance of getting a second term.....its too suspicious for me to buy it. But even if its all true it won't help the sliding dollar and worse if they start a war with Iran. You can forget the economy of ever recovering.
