Jim Rogers is a well known investment expert on commodities, including gold. He co-founded the Quantum Fund with Geroge Soros. The Quantum fund has made over $40 billion for its investors since 1973.
In this interview from October 2015, published on the excellent Midas Letter website, Jim explains his thoughts on gold for the near future.
“Well, I own gold, I own some gold. I don’t think that’s what’s going to be the safe haven at the moment; it could be, I mean, if war breaks out, of course, a lot of people are going to flee into gold, and I’ll be buying more gold at 1,500 or you pick the number, and happy to get it. No, if the world reverts to the US dollar, the US dollar goes higher, often, not always, but often, gold goes down when the dollar goes up.
People be fleeing to the dollar, they think it’s the better safe haven. So I would prefer – I own more gold than I do dollars, at the moment, I’m not sure I own more dollars than I do gold, at the moment, expecting the dollar to go higher, which will put more pressure on gold. But I’m not selling my gold; I am hedged with my gold. I’m doing nothing at the moment.”
At this point in time, early 2016, Jim see’s no big price move for gold. He does not discount that something might happen and he would look to buy more gold if a significant war broke out.
However at this time he sees no need to sell and is using gold as a hedge.
Not that the Jim Rogers gold strategy needs our approval but we completely agree.
Jim Rogers on CNN – February 2016
Jim was interviewed on CNN and gave a typically scathing assessment of central bankers and his expectation that there will be a significant market correction in 2017 – after a bull rally through 2016.
“We’re all going to pay a horrible price for the incompetence of these central bankers,” he said Monday in a TV interview with CNN Money’s Nina dos Santos. “We got a bunch of academics and bureaucrats who don’t have a clue what they’re doing.”
Using gold as a hedge to protect your portfolio against a potential (Jim would say inevitable) crash in 2017 makes sense for a lot of investors.
Jim Rogers on Bloomberg – March 2016
Jim Rogers was on Bloomberg further confirming his view that the U.S. economy has a 100% chance of recession – a view that is at odds with many analysts who believe that the U.S. has a 33% chance of recession.
“The former partner of George Soros suggested that if investors focus on the right data, there are signs that the U.S. economy is already faltering.
“If you look at the … payroll tax figures [in the U.S.], you see they’re already flat,” he concluded. “Don’t pay attention to the government numbers, pay attention to the real numbers.”
Jim Rogers Interview – Financial Times April 2016
When Jim was interviewed by James Williams in London for the Financial Times, he was in very good form. He talked about his early days in stockbroking and love of the job at the Quantum Fund.
He also spoke of the wisdom of holding physical assets …
” … he (Jim Rogers) points out that owning real assets will benefit investors when the lenders of last resort eventually print more money — as Mario Draghi has just committed to by increasing the European Central Bank’s bond purchasing programme from €60bn to €80bn a month.”
Your Gold Strategy 2016?
We see physical gold as an important way to diversify (into precious metals) and hedge (protect against market falls) your retirement portfolio.
A simple gold strategy 2016 is to allocate 5 – 20% of your portfolio to physical gold.
If you have no gold in your retirement plan, use the relatively low price of gold right now to build your gold bullion and gold coin holdings.