Home > Austrian School, Gold, Investment tips > Jim Rogers vs Nouriel Roubini: $2000 gold?

Jim Rogers vs Nouriel Roubini: $2000 gold?

Bloomberg reports that Nouriel Roubini has labelled Jim Rogers’ prediction of $2000 gold “utter nonsense.”

Roubini’s arugment is that in this deflationary environment there are no inflationary pressures and therefore gold has no upside.

Jim Rogers looks at the central banks printing, bailing out bankers, keeping interest rates low, feeding the US dollar carry trade, and “thinks different”.

This is an interesting war of words (and perspectives) from two people who are very perceptive, very smart and have been very right about the GFC.  Someone is going to look like an idiot. 

My bet is on Roubini looking like an idiot.  Gold historically has done well in either extreme deflation (in the Great Depression gold more than doubled) and extreme inflation (1970s stagflation).  It did not do well during the Great Moderation.   In fact it did very poorly from 1990 all the way up to 2001. 

But now the Great Moderation is over and we are into the Great Volatile, Nightmarish, Uncertain, Late Stages of the Crack-Up Boom.

So the stability of gold should shine through.  Eventually.

We shall see.

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