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Is the gold boom coming on your way as Jim Rogers predicted? Last month, legendary commodities investor Jim Rogers predicted that gold prices will surge to a record $2000 per ounce, thanks to the plunging US dollar. On M..
09 Nov 2009
LONDON (Commodity Online): Is the gold boom coming on your way as Jim Rogers predicted? Last month, legendary commodities investor Jim Rogers predicted that gold prices will surge to a record $2000 per ounce, thanks to the plunging US dollar.

On Monday, gold soared to an all-time high of $1110 per ounce in global markets. Is Jim Rogers laughing all the way to bank, if he has invested in gold cheap some months or years back? Or is he laughing at Nouriel Roubini who has countered last week that Jim Rogers' prediction of gold at $2000 per ounce was simply 'nonsense.'?

Here is an interesting article on the 'fight' between two legendary personalities: Jim Rogers and Nouriel Roubini from moneynews.com

Investor Jim Rogers successfully predicted a rally in commodities back in 1999. New York University economist Nouriel Roubini predicted the collapse of the housing market and financial meltdown back in 2006.

Now the two gurus are predicting each other to be incorrect. Rogers says Roubini's forecasts for bubbles to pop in the gold and emerging-market stock markets is just wrong. “What bubble?” says Rogers, Bloomberg reported. “It’s clear Mr. Roubini hasn’t done his homework, yet again.”

According to Roubini, investors are borrowing dollars to buy emerging market stocks and commodities, which is inflating the value of those assets.

Rogers counters, arguing that Chinese stocks and commodities including sugar, silver, coffee and cotton have all fallen from historical highs by at least 50 percent.

He even says gold hasn't begun to peak, adding that it will climb from a nominal record near $1,100 an ounce to $2,000 an ounce in the future.

“The old high, back in 1980 adjusted for inflation, would be over $2,000 now, just to get back to the old high. So we’ll certainly get there some time in the next decade.”

Meanwhile, finance ministers from the G20 group of wealthy nations agreed that economic stimulus packages should remain in place, thus weakening the dollar, which normally pushes gold prices higher.

Low interest rates in the United States will also help those bullish on gold.

“Unless there's a turn in U.S. interest rates, gold will be well bid,” says Ronald Leung, director at Lee Cheong Gold Dealers in Hong Kong, according to the AFP newswire.

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