Jim Rogers Blasts the Dollar & Goes Long in Gold

May 16, 2012

Yesterday, commodities expert Jim Rogers of Rogers Holdings spoke on CNBC ‘s  First On show about Gold, the Dollar & a variety of other economic concerns. He gave support to Gold in the long term stating, Gold has been in an 11 year rally it is due for a correction, but it is not finished making gains long term. He went on to further state the Dollar is a horrible currency and every one  hates it, but in times of crisis people run to it as a safe haven which is the wrong thing to do.

Finally on QE3 he said the Fed & Bernanke will print money it is all they know to do. It is the wrong thing to do but they will do it anyway. They are printing money now but they are not calling it QE3. With all of this happening and the precious metal/rare coin markets at the lowest premiums in decades now is the buying opportunity not seen since 2002 when gold was trading below $300.  To quote Rogers, 2013 is going to be a huge mess & 2014 will be a real mess. 

Watch the full interview here:


2012: Buy Gold on the Dip

March 23, 2012

Gold is retracting, giving back much of its gains for the year to date. We are seeing gold at mid-January levels and it is finding resistance in any moves over $1675.  The projection for 2012 ,an election year, are for mostly good news and economic sunshine. Jim Rogers, Chairman of Rogers Holdings,  commented while on CNBC’s The Kudlow ReportThis is 2012. There’s an election in november. There’s an election in france. There are 40 elections this year. The germans are having an election a year from now. You will see a lot of good news and a lot of money being spent. A lot of money being printed. Yes, this year’s fine. Worry about 2013. Be panicked about 2014, but this year, a lot of good news is coming out.

Jim Rogers isn’t alone he is join by Marc Faber , of the Gloom, Boom & Doom Report, who told CNBC, If you don’t own any gold, I would start buying some right away, keeping in mind that it could go down. He was later quoted in ETF Daily news: The possibility of the gold price going down doesn’t disturb me, says Faber.  Every bull market  has corrections. Adding that investors who own no gold today should immediately  begin to incrementally allocate no more than a total of 25 percent of their  portfolio holdings in gold.

We have commented on Fed Chair Ben Bernanke’s change of tone on QE3 & the economy after Rep. Ron Paul blasted him on the floor of Congress about the real value of silver & gold. This year is  should be viewed for investors as the summer before the long hard winter of recession. Now is the time to acquire precious metals & rare coins to build up your Tangible Asset Portfolio.

Ignore the Talking Heads Acquire Gold Now!

March 16, 2012

On a daily basis, we follow the nuances of the Precious Metal & Rare Coin markets. Experts everywhere talk about the upside & downside of these portions of the market. We pass much of this information on to our readers in an effort to educate and aid in your decision of when to acquire or potentially sell. Of late, the mantra given is Buy on the Dip & Gold is still a fundamentally sound investment.

I read an article recently that asserted listening to daily news can impair your judgement about the right investments. In other words, you get too much insight and you cant see the investment for the trees. They suggested to read on the subject from the macro not the micro. The set long term goals and stick to them.

This is why we often bring up an investment goal of a conservative 10% to aggressive 20%of your net worth invested in a diversified precious metals & rare coins portfolio. We call this a Tangible Asset Portfolio (TAP) it is a long-term plan with a definable goal. While we will continue to watch the news and disseminate the information to you we will never lose track of the long term goal. Own gold as a diversification  to your overall investment and keep your TAP just as diversified to preserve your hard earned wealth.

The Bernanke Effect…

March 9, 2012

The month of March pounded Gold over $100 to $1674 an oz. to date. Many have given technical reasons for this drop from profit taking to lessening global risk with the resolution of the EU Greek Dept crisis. What most have missed is one of the biggest stories of Leap Day and how it pertains to golds current retraction. In what most took as election year grandstanding, perennial Presidential candidate Ron Paul took Fed Chair Ben Bernanke to task over the devaluation of the Dollar & real inflation. (see video here)

Ron Paul has been on the record for over two decades attempting to return the Dollar to a Gold or Silver standard. He is also a huge proponent of owning physical Gold as a portion of your investment portfolio. These are all things that fly in the face of Bernanke’s support of the fiat system of currency we are currently under. To say these guys are at opposite ends of the discussion is putting it mildly.

Bernanke, in what most missed as a shot across the bow to Ron Paul’s Leap Day ambush, failed to make any mention, hint or allusion to a future QE3 during a speech on Wednesday this week. Gold took another beating as many investors believe that the Fed is holding the economy on the right track. So, they sold major positions in Gold. Silver is mirroring Gold over the last week, yet it still remains firmly entrenched in the low 30’s.

The take away from this is very simple. All metals are down yet the real risk has not left the building. While Bernanke & Paul knife fight around the room, take advantage of the lower prices by adding to your Tangible Asset Portfolio. A conservative 10% to aggressive 20% of your net worth is our recommended goal for your overall investments.

Marc Faber, Jim Rogers & John Paulson: Buy Gold on the Dips

March 6, 2012

Over the last week gold has retracted almost $100 an ounce. We could discuss all the technical reasons for this retraction: we could talk about the boost in the buying power of the Dollar in an election year. We could talk about the Euro Debt non-resolution, resolution. We could also bring up the ongoing tension in the middle-east. Honestly, all you need to know is Gold has retracted and now is the time to buy.

Marc Faber told CNBC, If you don’t own any gold, I would start buying some right away, keeping in mind that it could go down. He was later quoted in ETF Daily news: The possibility of the gold price going down doesn’t disturb me, says Faber.  Every bull market  has corrections. Adding that investors who own no gold today should immediately  begin to incrementally allocate no more than a total of 25 percent of their  portfolio holdings in gold.

Earlier in this current retraction Jim rogers also told CNBC, Probably none of us are going to own any paper money at all ultimately, but that’s later in this decade, because paper money is becoming very suspect everywhere in the world. He went on further to say referring to gold, Everybody’s having a wonderful time running the printing presses. The way to protect yourself at a time like that, historically anyway, has been to own real assets.

Finally reported in Bloomberg, billionaire hedge fund manager John Paulson of Paulson & Co said in a letter to investors, By the time inflation becomes evident, gold will probably have moved, which implies that now is the time to build a position in gold.

These men are some of the smartest guys in any room. Not all of their advice is golden but they all agree as retractions happen be prepared to acquire as much Gold as you can afford. Two out of the three men have gone public with the fear that the current system of fiat currencies will fail by the end of this decade. Leaving gold & silver as some of the few real assets you can own.

China’s Voracious Hunger for Gold

February 22, 2012

China’s appetite for Gold mirrors the old adage on Chinese take-out: No matter how full you may be now, wait two hours you will be hungry again.  A little over a decade ago the Chinese  government deregulated the purchase of gold. Since then China, the largest producer of gold, has grown to become a deficit consumer. The Hong Kong exchange alone demands more gold than the 321 tons produced last year domestically.

The talking heads vary on their opinions on how this will affect the global gold market. Some claim it will bring massive shortages in the coming years as China acquires more tonnage in the coming decade. While others shake this off as nothing more than the Central Bank of China (CBOC) anomaly of shoring up its banking through its gold holdings.  We think that both are correct to a varying degrees. Yet, we tend to cling to the middle ground that China both privately & through the CBOC will continue to add pressure to the price of Gold based on demand.

Much like oil demand is greatly increased by the consumption of the growing Chinese industrial revolution. Gold will continue to see price pressure as demand ebbs and wanes in China. As no surprise to any, China is growing into a power-house economically that will continue to affect global markets, including Gold.

China to the Rescue of Euro – Boosts Gold

February 15, 2012

Chinese central bank governor Zhou Xiaochuan

Much like last summer when Gold rose and fell with every changing wind of the US Dept crisis, this winter Gold is clinging to every shift of the EU Debt crisis. In a not so surprising move China’s central bank governor Zhou Xiaochuan said on Wednesday, The People’s Bank of China has always maintained close cooperation and contacts with the European Central Bank, and we support each other in many policy aspects. The PBOC firmly supports the ECB’s recent measures to address the difficulties. In other words, China will continue to buy up cheap European debt as a continuation of their move to become the worlds debt collector.

China’s commitment boosted gold in early trading today pushing the yellow metal up 1%. Gold continues to trade in the $1,700’s and should continue to for the near future.  This makes gold a buy as it nears the $1,715 price and hold closer to $1,775.  The next major move in gold should come once any details are released after the finalization of the EU Debt agreement.

Still in the minds of most investors is the impending move by the Fed to start QE3 before the end of this election cycle. Over the last month Fed Chair Bernanke refused to rule out firing up the printing presses to fuel the downward trend of the Dollar. Bernanke may be getting nervous that the Dollar is strengthening too much during this current Euro crisis and will want to put on the brakes. All of this should send the price of gold higher in the coming months.

Now would be a good time to start or reinvest in your tangible asset portfolio, making sure you are at a conservative 10% to aggressive 20% of your net investments. This will provide the financial insurance needed to weather the coming economic storms on the horizon.