Jim Rogers, co-founder of the Quantum Fund, believes that the appreciation of the precious metal could lead to a new bubble.
Due to the huge amount of debt generated by central banks during the covid-19 pandemic, the next economic crisis could be even worse than this year, as warned by one of the world’s best-known investors, American businessman Jim Rogers, founder of the Quantum Fund in the 1970s with George Soros.
“We may not have studied economics at an Ivy League university, but we know that if you print or borrow money, we unconsciously know that this creates problems. And so more and more of us turn to gold and silver,” the commenter explained. financier, who is also chairman of Rogers Holdings.
According to his forecast, the price of gold “is going to rise much, much, much more” before the pandemic ends, which could turn into a new bubble.
“I hope it doesn’t [happen], because if [the gold] turns into a bubble, I will have to sell it and I never want to sell it. I want my children to have my gold and my silver one day,” said the 77-year-old investor. .
Since the start of the pandemic, gold has been one of investors’ favorite commodities, serving as a refuge from volatility and financial insecurity in times of crisis.
Rogers’ interview was published on the same day that the S&P 500 index surpassed the all-time highs it registered in February, causing the fall of gold, whose price had just surpassed the record level of $ 2,000 per ounce on Tuesday.
The rise in gold, which is now trading near $ 1,934, was fueled by Berkshire Hathaway’s purchase of a stake in gold mining company Barrick Gold, owned by Warren Buffett, the world’s fourth-largest billionaire, according to Forbes.