Legendary trader Jim Rogers says the current economic conditions are the worst he’s experienced in his lifetime. Additionally, he mentions that gold prices will continue to climb higher as governments print more money.
During a recent interview with Kitco News, Rogers said of the current economic environment, “I wouldn’t call it good. I would call it a disaster. I would call it the worst economic times in my lifetime.”
The recovery from the pandemic has only been because of massive government spending. This, Rogers says, will only make the next crash even worse.
“We’ve had a huge rally because governments everywhere have printed and spent staggering amounts of money. But that just means next time it’s going to be worse still. Unless you think we’ll never have economic problems and market problems again, the next one is going to be worse because of the debt. In 2008 we had a problem because of debt. Since then, the debt has skyrocketed. It’s skyrocketed everywhere in the world. So unless you think we’re never going to have problems again, then the next one is going to be worse.”
When asked about ways to protect his wealth from the next crash, Rogers said “peasants” like him have always understood the value of owning gold during tumultuous times.
“Throughout history, people like me have always turned to gold and silver in times like this. The politicians and the academics and the bureaucrats tell you “gold is not worth it, gold is a barbarous relic.” That’s what they call it. Maybe! But peasants like me throughout history know that gold and silver, okay, it may be a barbarous relic, but I’m going to own it.”
Governments also understand the appeal of gold. Rogers says this is why they don’t like average Americans owning it, and have outlawed it in the past.
“Historically it was because gold was money and was in the money system. That’s why in the 30’s America confiscated everybody’s gold and made it illegal and the British and other people as well. It was the money system.”
“Gold is the obvious place where peasants like me will go in bad times, and I’m not the only peasant, when things get really rough there are going to be millions, hundreds of millions of peasants like me. And so they will have to try and do something.”
He says it doesn’t take an Ivy League education to understand why owning gold is appealing when governments are printing trillions of dollars.
“Governments everywhere printing and borrowing staggering amounts of money. All of us peasants know, we may not have studied economics at an Ivy League university, but we know that when you print money and borrow money, subconsciously we know this leads to problems. So more and more of us are turning to gold and silver.”
Rogers adds that gold prices will go much higher before this is over.
“If I’m right, gold is going to go much, much, much higher before this is over. Gold will certainly get overpriced, it may well turn into a bubble. I hope it doesn’t because if it turns into a bubble I’ll have to sell it and I never want to sell it, I want my children to have my gold and silver some day.”
Even with prices closing in on $2,000 an ounce, Rogers still sees gold as a buy.
“I’ve been a buyer of gold since the summer of 2018 and I continue to buy.”