Oxstones Investment Club™By: Forrest Jones
The price of gold will hit $2,000 an ounce in the next decade or maybe even earlier, says investment guru and commodities bull Jim Rogers.
While governments across the globe print money in effort to right their ailing economies, they will see their currencies remain weak, and weak currencies boosts demand for precious metals.
“Gold will go over $2,000 an ounce certainly in the next 5 to 10 years,” Rogers tells Economic Times.
Gold is currently trading around $1,300 an ounce.
While gold prices are on the rise, silver will perform even better, Rogers says, pointing out that silver has more room to make gains over the coming years.
“I own gold and I own silver, but silver is still 60% below its all time high,” Rogers says.
“Silver — on a percentage basis — will probably go up even more during that period of time.”
Traders in the precious metals markets point out that silver already is making inroads against gold today in terms of price gains.
Since late June, silver has outperformed gold, advancing 17 percent compared with gold’s 5.5 percent gain, according to Bloomberg.
“Silver is trying to catch up with gold,” says Ellison Chu, precious metals manager at Standard Bank Asia.
“Gold is already at a record but silver is quite far from it.”
Concerns that central banks around the world, especially in the United States and Japan, will ease their monetary policies are fueling the demand for metals.
“People are expecting the U.S. dollar to remain weak and putting money into commodities is a good alternative,” Chu says.
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