Market experts Jim Rogers and Marc Faber both expect higher gold prices and encourage all investors to have part of their assets held in physical gold. They both expect the stock market to go down and in response, commodities will go up. They believe gold prices could be as high as $3,500 in the next few years.
August 29, 2013, 11:00 AM
It’s not a surprise to hear that billionaire investor Jim Rogers, who’s usually bullish on commodities, expects higher prices for gold, but The Gloom, Boom & Doom Report’s Marc Faber said he does too.
In a video interview with Reuters’ Tara Joseph posted Wednesday, Jim Rogers, investor and chief executive officer of Rogers Holdings said: “I own oil, I own gold, I own things like that if there is going to be a war … they’re [going to] go much, much higher.”
“Stocks are [going to] go down … commodities are [going to] go up,” he said.
Marc Faber, also known as “Doctor Doom,” told HardAssetsInvestor in an interview published Wednesday that “looking at how debt will continue to increase and how central banks will continue their monetization not only in the U.S. but on a worldwide scale, I assume the price of gold will trend higher.”
He said “most likely we’ve seen the lows below $1,200” and gold GCZ3 -1.22% will eventually be over $1,921.” That’s an intraday spot gold price level last seen back in September 2011.
Faber said he doesn’t know if that level will be reached this year or in five years. But “I think that part of your assets should be held in physical gold. I emphasize physical gold,” he said.
Citi analyst Tom Fitzpatrick was even more bullish on gold and silver too.
Fitzpatrick told King World News’ Eric King that “we believe we are back into that track where gold is the hard currency of choice, and we expect for this trend to accelerate going forward.”
“We still believe that in the next couple of years, we will be looking at a gold price of around $3,500,” he said in the interview posted Wednesday. And as the gold/silver ratio plummets near 30, “this would suggest a silver SIU3 price above $100.”
With December gold trading at around $1,404 an ounce Thursday morning on Comex and September silver at about $23.76, it would take about 59 ounces of silver to buy one ounce of gold.
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