Today, LewRockwell.com posted an article entitled “Gold and Silver: Jim Rogers Wins Over Peter Schiff” written by Dr. Jeffrey Lewis. The original article appeared on Commodities Online.
I wrote a reply to Dr. Lewis’ article but so far it hasn’t been posted, so I thought I would post the reply here.
Dr. Jeffrey Lewis Is Mistaken; Rogers Doesn’t Win Over Schiff
I believe you are mistaken in saying Jim Rogers beats Peter Schiff.
You write for Commodity Online which analyzes elements of the earth. This would fit what Jim Rogers says in his analysis of the various minerals from an investment perspective as he explained in his book “Hot Commodities.”
In that book, Rogers speaks of the bull market in commodities starting in 1998, not “7 years ago” as you state. He doesn’t mention gold until page 157 and when he does, he states that he views gold as “an insurance policy” more than he does a commodity. “Own some perhaps as an insurance policy, as many around the world do–including me.” P.167
Schiff views gold as insurance as well. Insurance against the destruction the U.S. government is causing by not living within their taxable means. U.S. Dollars are what gold is priced in. If the quality of the dollar decreases the gold price in dollars will rise.
In this sense Rogers and Schiff agree. Gold is insurance for one’s portfolio against the price decline based on the currency it is valued in.
Ask the people of Argentina and recently Iceland, whether they think gold is a commodity or money?
Since 2000, gold and the U.S. dollar have been inverse of each other. Last year most commodities got slammed but gold ended up with its 8th consecutive positive year and 2009 will be its 9th. Oil, also priced in dollars, isn’t breaking to new highs. Gold and silver are known the world over as money. Oil and other commodities are not.
I wrote an article not too long ago explaining this in more detail;