NEW YORK (
, the famous contrarian investor, stands behind his prediction that
will hit $2,000, but isn't buying any more gold at record highs.
Rogers has been a gold bull for years and well before this year's 25% rally. There are many ways to buy gold like the gold exchange-traded fund,
SPDR Gold Shares
, up 24%; gold stocks like the
Market Vectors Gold Miners
, a basket of large-cap miners, up 30%; or physical gold. Rogers favors the physical commodity.
Some analysts disagree with Rogers.
called a top in gold at $1,750 sometime in 2012, while Jon Nadler, senior analyst at Kitco.com, says the top could come in 2011 especially as prices struggle to sustain prices above $1,400.
I recently sat down with Rogers to see when he thought gold prices would break $2,000 and how he would buy the precious metals market.
Now, you've said that gold will hit $2,000. Do you know when -- crystal ball
: I wish I knew when, watch
you can get all these answers to market timing; I am no good at it. I explained to you that gold will be $2,000 certainly in the decade, it'll probably be much higher than $2,000 in the decade but maybe even sooner I don't know. But to me it seems pretty clear that it'll go to at least $2,000. If you adjust the old high back in 1980 for inflation, gold should be over $2,000 now.
What about silver
Silver at the old high was $50, silver's at $30 now. Silver can certainly go to $50 again and probably much much higher over the next decade.
It just seems you'd be selling your gold this year with all the hype that's been going on
There's been some hype about it [but] most of the public, for instance, is selling gold. If you walk around the streets in nearly any American city you'll see signs -- sell us your gold. The public is in there selling their gold, selling gold jewelry, as fast as they can.
I spoke not too long ago to 300 major international money managers from around the world, sophisticated people with a lot of money under management. And the moderator, I didn't know why he said it, but he said, "How many of you have ever owned gold?" Seventy-six percent of those people had never owned gold.