A synopsis of a Jim Rogers interview with Mark Obyrne at GoldCore.
Jim Rogers is a legendary international investor and author of A Bull in China: Investing Profitably in the World’s Greatest Market, A Gift to My Children: A Father’s Lessons for Life and Investing, and Street Smarts: Adventures on the Road and in the Markets.
TOPICS:
Currency Crises
US Dollar
Pound Sterling
Gold
Silver
Gold and Silver Ratio
Allocation
Futures Markets
Storage
Timing
CURRENCY CRISES
We’re going to have a lot of currency crises in the next 3 – 4 years.
No question about that.
The U.S. dollar is a disaster but Jim owns it because the other currencies are going to be even worse.
When there’s turmoil everywhere then everyone will go into the U.S. dollar thinking it’s a safe haven. It’s not a safe haven but people think it is.
They’re not going to buy the euro or the Australian dollar. No. There’s not much left except the U.S. dollar – and it’s a mess.
US DOLLAR
The U.S. dollar may become overpriced and turn into a bubble, depending on how bad the world’s turmoil is.
If it becomes a bubble then Jim hopes to sell the US dollars he owns and then buy gold. You have to sell a bubble because no one recovers for a long time.
Turmoil is coming and it’s getting very serious.
In 2008 the problem was too much debt.
But since then the debt has skyrocketed all over the world.
It’s been over ten years since there’s been an economic problem in the U.S., and that’s the longest time in American history. The expansion doesn’t have to end this time but it always has ended in the past.
There are many problems that are going to make the next crisis very, very serious.
As the world gets into serious turmoil, included the U.K., Europe and other places, the world will turn to the U.S. dollar.
In the end, Jim says it will be the worse economic problem in his lifetime.
Everyone should own some gold as an insurance policy. You have health insurance. You hope you never use it but you have it in case you need it. Likewise with gold.
Jim has gold and silver as insurance, and hopes to buy a lot more as the crisis unfolds.
Usually if the US dollar is very strong then gold is weak. So Jim’s plan is to sell his US dollars when they hit a bubble, and then buy what he thinks will be a lower price in gold.
POUND STERLING
Gold is at a record high in pound sterling.
But it’s not gold going up; it’s sterling going down.
The United Kingdom is one of the most indebted nations in the world. Boris Johnson may be the needle that causes the pin prick, but sterling has huge problems and it’s not because Johnson was elected.
Whatever happens it’s going to get worse, and the political problems could add to make it even worse.
The UK could break up.
It’s been a United Kingdom for 400 years but it might not be united anymore.
If Scotland pulls out of the UK and takes its oil then where does sterling go?
GOLD
Throughout history, when people lost confidence in government or in money they always turned to gold and silver.
Maybe they shouldn’t. Many academic studies say gold and silver are worthless. Who cares? You can’t tell French peasants or this American peasant (Jim speaking of himself), that they’re worthless. And even if they are, the rest of us think they’re worthwhile, so Jim and other peasants like him, as he says, will be buying silver and gold.
Gold and silver have been a defence, a way to hedge yourself against the loss of currencies.
Pound sterling is in trouble right now, but if you own gold and silver then you don’t care. Gold and silver are helping to protect against currency problems.
The average person doesn’t care what the academics say. They’re going to buy gold and silver to protect themselves in the end.
SILVER
Silver will go up more than gold because there are many, many people who are unaware how underpriced it is or don’t care about it. Good. Let them. Silver is more depressed in price, so if Jim was buying more precious metal right now he would be buying silver. He’s buying neither at the moment.
People who have been personally researching and know what’s going on in the world can buy as much as they want now at the depressed price, and then let the others come in after the price rises.
GOLD SILVER RATIO
Gold has historically had a price ratio of 16:1, so the price of gold is sixteen times higher than silver. In the recent past it got as high as 90:1 but it fluctuates. and hasn’t been at 16:1 for a long time. There’s no magic in the ratio.
Just because it’s been at 16:1 historically doesn’t mean it can’t change. Jim’s not buying silver and gold because of the ratio – he has it because of what’s happening in the world.
Jim plans to buy both gold and silver in the next crisis, and he hopes he gets his timing right. Both will go much, much higher before this is over.
ALLOCATION
It depends on the person. If you know a lot about gold and silver maybe you go in 90%, if you know nothing other than your mother’s wedding ring was gold then you should do some research.
Only invest in what you yourself know a lot about.
For a person who knows a lot about the company Alibaba, he or she should put a lot into Alibaba and a little bit into gold and silver.
It depends on the person.
If you don’t know about gold then learn and only have a little bit, as everyone should have a little bit as insurance.
FUTURES MARKETS
When a crisis comes, the best thing for an investor would be to own gold and silver futures if the markets are still functioning. You can make a staggering amount of money in the futures markets because of the leverage.
But if you do that then you better get your timing right or you could lose a staggering amount of money very quickly too.
Jim doesn’t own any gold or silver futures at the moment, but he does own physical gold and silver at the moment.
He doesn’t call himself a good market timer so he owns physical metal.
But if gold and silver go into a bubble, which Jim expects before it’s over, then you can buy futures with a 5% or 10% margin and make a huge amount of money.
But that’s only if the futures markets are still functioning. In a crisis who knows what could happen – war, bankruptcy, famine. Everything could go wrong.
All markets have closed when things got really bad.
STORAGE
Singapore, where Jim lives, Switzerland, Austria and Liechtenstein have so far been safe places for precious metals storage.
But when a crisis comes some smart general might invade Switzerland because that’s where the gold is. The world is always changing.
No matter what people think today it will not be true in fifteen years. For example, what people thought in 1900 was totally false in 1915. What people thought in 1930 was totally false in 1945.
So today those are safe places but keep an eye on the internet news because things are going to continue to change.
TIMING
It’s been over ten years since we’ve had a problem.
The last time the problem was too much debt.
Since then the debt everywhere has skyrocketed.
In 2008 and 2009, China helped save the world with its savings, but now even China has a lot of debt.
Be aware.
The next time, Jim says, it will be the worst crisis in his lifetime.
Become knowledgeable and then you will get prepared.
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Here’s How Gold Moved This Week:
The spot price lifted up over $1,500 US/oz this week and is sitting pretty firmly there at the moment.
Two weeks ago gold was at $1,418.80 and now, even down a bit this week, it’s up to $1,496.20.
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My thoughts…
I spent part of last week at the Sprott Natural Resource Symposium. Can’t speak highly enough about Jim Rickards and Rick Rule – they care very much about the people they work with.
I took a few wonderful photos on a Vancouver cruise for the symposium. A magic night. Then I took a swim in the ocean in White Rock with my phone in my back pocket. Yes, the photos are all gone. Along with the phone. :)
Some of the gurus I follow own gold for offence and some own it for defence.
Some are speaking to the wealthy looking to protect what they have in the next crisis.
Others have an audience who are just starting out or are middle class, looking to buy gold and silver and then sell it in the next crisis to make their wealth.
I hope to talk to you all about both views.
Jim Rogers is one of the few gurus I follow who’s aimed at both offence and defence.
Jim’s shared his plans on how to profit in the next crisis by trading gold and silver using futures and good timing. But for those who don’t know how to do that he says to do your own research. Once you understand the debt the world is in you’ll want to be prepared and own some physical gold and silver as an insurance policy.
He’s thinks way ahead in global changes, and believes that China is “where the future is”. Jim wanted his children to live well and do business in Asia, so he moved to Singapore in 2001 with his wife. Their two daughters, Happy and Little Bee, were raised with Mandarin and Chinese culture.
The family appeared on a Chinese TV show “Everlasting Classics” in February 2019.
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We all do no end of feeling and we mistake it for thinking. And out of it we get an aggregation which we consider a boon. Its name is public opinion. It’s held in reverence. Some think it the voice of God. – Mark Twain
Feelings come and go.
If anger is rising you don’t have join in or take a side.
As the world is bobbing up and down without an anchor but you don’t have to be in the boat. Build your own ship, jump in another’s, or create a rocketship and forget it all.
Persuasion is the tool to get you to attach to someone else’s group and make their position stronger. A bigger group gives an idea more strength. Good or bad idea. Maybe someone just wants numbers, and it makes you a commodity if your opinion was harvested without your calm consent or knowledge. Do your own research. Spend time with your own thoughts.
Attaching and detaching from closed systems is where the world is heading. Conciousness and non-locality are the new frontier.
Everything changes. True. But gold changes the slowest. ;) Elaine~
World Without an Anchor
words and music | Elaine Diane Taylor
©2019 Elaine Art & Media
ASCAP/SOCAN
Single available on iTunes.
In a world without an anchor
subject to the sea
Right before a tempest
Left screaming at the breeze
Walls of rage and water will test what you have learned,
That in a world without an anchor coins are tossed and boats will burn.
There’ll be ships that lie deep (in) state beyond (the) reach
Who will wear a yellow vest?
Who will wash up on the beach?
n a world of flags and spices
we were playing pipes and drums
Sailing on the seas
and selling souls and sums
The gold sailing one way
and silver in return
But in a world without an anchor
we’ll all drown in debt in turn
Will there be ships that lie deep in state beyond the reach
Who will wear a yellow vest?
Who will wash up on the beach?
In a world of borrowed soldiers
the captain’s damage owed
The treasure chests are missing
and the golden anchor sold
We are fed with cake and follies
We are tethered to the shell
Bailing out the breaches
We’re now bailing in the hell
Will there be ships that lie deep in state beyond the reach
Who will wear a yellow vest?
Who will wash up on the beach?
from “World Without an Anchor”
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Not Much of a Holiday
words and music Elaine Diane Taylor
© 2015 Intelligentsia Media, Inc. All rights reserved.
SOCAN/ASCAP
Single available on iTunes
Bank holidays and long lines at ATMs to get enough for the day. Debt deals behind closed doors. The media telling us what to believe. China building islands in the South China Sea and claiming all the international waves. Markets close and rockets crash. Silken road, treasure, files hacked. Oil, fusion cold. News and nations all sold. More dealing to come. More standing in line for those who owe. Who owes? There’s a long line of nations in debt and this is far from done.
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Preparing for the Fall live boutique album available on iTunes — featuring Wag the Dog, Black Swan Dive, American Pie and Gods of the Copybook Headings.
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Coins and Crowns
words and music Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes
Single featured in Episode 1 of Mike Maloney’s documentary series Hidden Secrets of Money.
The costs go up and the jobs go down. Hunger goes up and hope goes down. Then anger goes up and it all goes down.
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Elaine Diane Taylor 