Jim isn’t seeing the forest through the trees, as is often the case with Americans who’ve gotten too rich and moved to the orient in order to teach their children mandarin.
Rogers favors gold over dollars because gold has already moved higher. But he’s viewing this in a very binary manner. He’s obsessed with the inflation boogeyman, something that hasn’t existed since the 1980s. Gold isn’t going up because of inflation, but because it is viewed as a safe haven. The same can be said about treasuries, bitcoins, and the dollar.
At any rate, Rogers fears if dollars go higher, gold will go lower. It’s an entirely rational train of though if it weren’t for the case that gold has become the defacto asset of choice for hedge funds everywhere, as they shift assets out from stocks into the anointed safe havens.
Rogers on gold and the dollar.
If you enjoy the content at iBankCoin, please follow us on Twitter“Gold has been staggering this year, went straight up, and I don’t like to buy anything that’s run straight up,” Rogers said. “I would prefer to buy the dollar as a haven than gold.”
Rather than selling his gold, Rogers said he would take some some short positions as a hedge against his holdings. “I own plenty of gold, I assure you,” he said, adding that he’s “extremely optimistic” about agricultural commodities.
“I can’t get too optimistic about something that’s been going straight up,” Rogers said, referring to gold. “The dollar hasn’t done that, and often in history, when the dollar goes up, gold is weak.”
Fly, love ya(no homo), and you’re a smarter guy than I, but the expression is, “Can’t see the forest for the trees.” “For” here meaning “because of”.
How about both the US Dollar and gold going higher from here?
Possible but extremely unlikely. It’s going to be one or the other.
Gold shot out during china new year and when china printed in feb. I am thinking it is transitional and jim the toad will be right. Dollar is king in 2016.