His name is Jim Rogers and he’s one of the world’s most famous investors. He founded the Quantum fund with George Soros and has written many books including Bull in China, Hot Commodities, Adventure Capitalist and Investment Biker. His latest book is A Gift to My Children, a father’s lessons for life and investing.
Recently, Mr. Rogers has been giving his opinion on the investment merits of gold.
Even though gold has recently made all-time highs, Jim Rogers is still bullish on the metal. Rogers says that, adjusted for inflation, gold should be around $2000. Rogers noted that he is holding his gold positions and not selling despite the recent highs.
Rogers notes that with the fear of inflation and the possibility of a weakening US dollar, gold has become a popular investment asset class.
He also notes that he prefers to invest in gold the commodity itself as opposed to gold stocks as studies show that investors tend to do better by owning the commodity as opposed to stocks unless they were excellent stock pickers.
Rogers also owns silver, palladium, and platinum and notes that silver actually may be a better investment than gold since it is around 70% below it’s all time highs.
Finally, Rogers repeated his thesis that commodities will do well no matter what happens to the world economy. Rogers maintains that if the world economy does well, commodity prices should increase because of a shortage of supply. And, if the world economy doesn’t do as well, he still thinks commodities will do better than stocks because of the fact that countries are printing a lot of money.
Rogers is also so keen on China as the next great economy that he recently moved his family to Singapore. In addition, both his daughters have a Chinese governess and speak fluent Mandarin