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Jim Rogers Says Government Budget Deficits Pushing Up Gold Prices

Commodities / Gold & Silver 2009 Dec 02, 2009 - 02:07 AM GMT

By: LewRockwell

Commodities

What is the real reason behind the historic rise in gold prices? Futures and spot prices of gold across global commodity bourses and bullion markets have been surging for the past few months. Gold price touched a high of $1195 per ounce in the last week of November.


Bullion analysts have been maintaining that depreciating US dollar is one main reason for the big rise in gold prices. Now, global commodities investment guru Jim Rogers says budget deficits in many countries across the world are propping up gold prices.

Is it true? Jim Rogers has forecast that gold prices would zoom to a record $2000 per ounce in the next decade, beginning next year. Rogers, who has been aggressively investing in agricultural commodities, especially in China, has also recently maintained that given a chance to invest in bullion, he would put his money in silver and palladium, and not in gold, as the yellow metal prices are on fire.

But is budgetary deficits spurring gold, and bullion trade in into the high-price tag level?

Here is what Jim Rogers told Business Week:

“Gold’s recent price surge is thanks to budget deficits. “Deficits are going berserk nearly everywhere. Throughout history, printing money has led to weaker currencies and higher prices for real assets.”

“here are many, many pessimists about the dollar, including me. So many pessimists that I suspect there's a rally coming.”

“I have no idea why there should be, but things do usually rally when you have this many bears at the same time. I've actually accumulated a few more dollars.”

There is sense in what Jim Rogers is saying. He should know, as some of his best known books like Adventure Capitalist, Investment Biker, A Bull in China, and Hot Commodities have been eye-opening to the world economy, commodities market and investment ideas.

Read the rest of the article

Copyright © 2009 Commodity Online

http://www.lewrockwell.com

    © 2009 Copyright LewRockwell.com - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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