Wednesday, September 16, 2009

Jim Rogers: We will have a currency market crisis

Video below seemed appropriate with Gold topping $1020 today.

Note: A currency crisis is not a matter of "if" - it's more a question of "when". Gold is your personal hedge against this future event.

Regarding a rising gold price: Don't think of gold as going up in value (it's value should remain somewhat constant), think of the price increase in gold as more of a currency event - the dollar going down in value requires more "devalued" dollars for the same tangible asset (gold - or silver - or even a gallon of gas or case of rum for that matter).

Food for thought and your key take away point for the day: Though many have tried, no country in the history of the world has EVER been able to print their way to prosperity - and the outcome for this US attempt will be no different.

All fiat currencies eventually return to their intrinsic value - that of toilet paper

Interesting perspective below at link - record gold prices here to stay?

The Golden Staircase

1 comment:

Anonymous said...

You & Jim Rogers put it best in that "it isn't Gold that's going up, its the dollar going down"

Now SOMETHING did set this off about a week ago. Suddenly one morning Gold was up and rising and Goldman and JPM haven't been able to get the genie back in the bottle since.

Will it persist? I'm thinking that is likely. It could just be that due to factors such as China, Barricks, etc that Gold can not longer be throttled to the extent that it has been in the past.

And of course, underlying this is
a declining USD due to a spendthrift US Government and an all too willing PrinterMeister in Bernake.