Thursday, August 18, 2011

Gold Beyond US$1800 Level – What Do Jim Rogers, Gerald Celente, Marc Faber Say? - My Loans Consolidated

Ever since the debt ceiling bill passed on Aug 2, 2011, everything went downhill for America, dragging the whole world down with them. Standard & Poor downgraded the US credit rating from AAA.The Dow Jones dropped sharply within the past 8 days by over 500 points. Gold price rose from a little over the $1600 level up beyond the $1800 level. Within only 8 days, gold gained more than $200 per troy ounce.This only means that the US dollar is not even worth the paper it is written on. Being the world’s reserve currency, the greenback is dragging down most of the value of other currency down with it. Still, economists predict that another round of quantitative easing is already on the way.

Jim Rogers, investor and author, has always warned the masses that gold price is going to go up despite what other economists say that gold is currently in a bubble. He made it loud and clear that this is not a bubble. Gerald Celente, CEO of Trends Research,  has never trusted the US dollar and has suggested people invest in gold. Recently he even tells Russia Today that the US dollar is not even worth the paper it is written on. Marc Faber believes that Federal Reserve Chairman Ben Bernanke will continue doing the only thing that he knows best – printing more money. This will only drive the price of the yellow metal even higher and higher.

The past few days the world panicked following the Aug 2, US debt ceiling lift, Dow Jones plunge and gold price increase. Jim Rogers believes if people keep panicking like this than the economy is for sure going to go down. “If we have more panic this week, then everything is going to go down, but you should probably step in and buy commodities. If they do collapse, with everything else I would prefer to buy agricultures. I said before if gold goes down for some reason or silver, then I might buy silver,” Rogers said. With the gold price being in a rally, Rogers is playing cautious about buying into it.

Meanwhile, Gerald Celente predicted this collapse accurately in his latest Trends Journal published on the 13th of June. He has always made it clear that the economic recovery that US media experts are so eagerly promoting is bogus. Celente also predicted that a global economic collapse was imminent. “The economy is on the threshold of calamity… another violent financial episode is looming,” he wrote. And he was right. The collapse is happening right now!

Marc Faber, in an interview with Bloomberg said that even with gold price above the $1800 level, he does not think it is a bubble. He said, “I don’t think it is a bubble, but I think the gold market has exploded to the upside recently and the correction is overdue. But as I have always maintained for the last 12 years, every responsible adult should gradually accumulate gold, because not owning any gold is the trouble with government. I don’t understand. People of Bloomberg, I hardly know anyone who owns any gold physically. All of the Bloomberg employees are intelligent people. They listen to the news every day. They make the news every day. Hardly anyone owns any gold.”

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