Tuesday, May 15, 2012

Jim Rogers on U.S. Dollar

Talking to Steve Forbes at Forbes.com, Jim Rogers weighed in on the U.S. dollar and why he's holding it at this time, as well as why he might even acquire more of the greenback sometime soon.

It's interesting to listen to Jim Rogers chat up the U.S. dollar, as over the long term he has called it a "flawed" currency in the past, and continues to believe that to be the case.

Even so, he is invested in the dollar, and has been since around early 2011.

When asked if the reasoning behind investing in the U.S. dollar was because it's in a "bear market rally?," Rogers said this:

It’s a bear market rally, yes, in my view. Although when I walk out of here, I may buy more. No, I don’t see it as anything more than a bear market rally. But I own several currencies around the world. There may be a time ... in the foreseeable future, when all of us are going to be getting rid of our paper money, because it’s being debased all over the world. One reason I own the dollar is because everybody’s panicked about the debasement of these other currencies. Paper money is suspect.
Also being an expert on gold, Rogers knows we're in a gold correction at this time, and expects it to drop more before recovering to continue its upward price run.

That means for a season the U.S. dollar will continue to flourish, as it has little in the way of competitors in the short term, making it the preferred place of safety for investors, as the euro continues to plunge in value based upon the sovereign debt crisis in Europe.

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