NEW YORK (Commodity Online): For all those goldbugs who are waiting for the US Fed's QE3 as the trigger to pile more gold, you might be in for a surprise. Why? Because you may be in a QE3!
In a Bloomberg interview, fabled investor Jim Rogers raised his suspicions that we might e in the third round of Quantitative Easing, or QE3. Based on the huge jump in M2 Money Supply (chart below) , Rogers believes that “they are buying something.”
And his advice on those downgrades after downgrades that grab headlines – forget the noise. Markets may rally on short term fixes but until some plan is not worked out to deal with the mammoth debts, no rally is going to last.
In a separate interview with CNBC, Jim Rogers slammed Marc Faber as the one who has made the most wrong calls and because he "totally missed" the commodities bull market that started in 1999. And China? "Marc still does not understand China. There are going to be several hard landings in the next few years, but China’s will be less hard overall than others such as Greece, U.S., et al,"
With regard to Gold, Rogers reminded of the period in 1970's when gold prices went up 600% and then crashed by 50% scaring investors. BUT, he points out "It then continued its secular bull market and rose 850 percent”
