I like Jim Rogers. There’s just something about the guy. Maybe its nice to hear someone from Wall Street talk slowly, maybe its his Southern demeanor and that bow tie. But compared to a lot of the quick-talking, know-nothing, twenty-something financial section types, Jim Rogers brings a real dignity to finance.
This might be why the whole market stops to listen when the legendary trader speaks. I mean, the co-founder of the Quantum Fund with George Soros, which outperformed the S&P by over 4000 percent, probably knows a thing or two about the markets.
It’s like a breath of fresh spring air, actually, instead of the usually cud that you find in financial advice. When Jim Rogers points at Ben Bernanke and the policy of the Federal Reserve, he has an eye to the long-term. Rogers has repeated spoken against the money-printing policies of the Federal Reserve as a fundamental debasement of the currency that will not end anytime soon. Also, it is such an astronomical operation that it threatens the stability of entire markets.
You cannot print $600 trillion, which is the increase we’ve seen in derivatives since 2008, without threatening the validity of the entire market. It’s as simple as that.
Gold and silver are the natural reaction to this kind of money printing. They are the commodities with the most fundamental and inherent value. This is why they are gaining in price as the money printing continues. Rogers has been long gold for ten years, since the beginning of the bull market, and now he’s got his eye on silver as potentially an even better position.
This is the same guy who has been recommending that financial types and MBA students look into purchasing agricultural property instead of going to work in hedge funds. It cuts against the grain and makes you look twice. This guy retired at 37 and he’s clearly not just telling them what they want to hear.
“I’m glad you said that,” Rogers amiably drawls in interviews when someone actually gets something right. In this market, even saying the right thing seems like a commodity most traders cannot afford. We have a whole lot of artificial dollars flooding the market from the fiscal stimulus and it’s going to be a while before all those chickens have come home to roost. Japan lost a decade. We could lose another if we don’t see it.
That’s why gold and silver are going to be best market instruments for all of us.