Gold and Silver: Jim Rogers Does NOT Win Over Peter Schiff
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;
Gold is a Commodity, But Unlike Oil, It’s Known the World Over As Money
I don’t think Peter Schiff got a fair shake in this article by Dr. Lewis.
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Wow, what a great reply. You should have your article on Lew Rockwell. I saw a Youtube, where in Zimbabwe people pan for gold to buy bread. All day these people pan to get the smallest amount of gold to trade for bread to stay alive. I guess it doesn’t matter what you call it, as long as you got it.
Thanks quiltingsando,
I was surprised to see someone had posted it on Lew’s site.
Regarding Zimbabwe, I have some of those 100 Trillion Zimbabwe notes as novelty items. I wrote an article that suggested the people of Zimbabwe know more than their government and instead of implementing a “gold backed” standard like their Central Bank spokesperson wanted to, I suggested they be the first nation in the world to go on a physical gold standard. The quality of life of the Zimbabwean’s would greatly improve if they did.
Of course the Zimbabwe Central Bank wouldn’t go for it, but what good did they do to begin with? At some point a nation has to stand up for what’s right.