Investment guru Jim Rogers blasted New York University economist Nouriel Roubini for predicting that gold and other commodities are becoming an asset bubble.
Rogers and Roubini have disagreed before, especially on gold, with Rogers saying prices will rise in the long-term and Roubini saying prices are bubbling.
“I am most perplexed about this alleged bubble which is out there,” Rogers told Wall Street Cheat Sheet.
Rogers has been bullish on gold and other commodities for the long term, often arguing that the weakening U.S. dollar will make commodities a better investment, pushing gold toward $2,000 an ounce, hundreds of dollars higher than where it is now.
Roubini, on the other hand, says investors are borrowing dollars to buy emerging market stocks and commodities, which is inflating the value of those assets.
Doing so further weakens the dollar and pushes up gold, but that trend will end soon, Roubini says.
Furthermore, Central Banks will begin withdrawing stimulus money from economies around the world soon and ease inflation fears, which often send investors flocking to gold.
Gold is around $1,100 an ounce recently as investors regain faith in the greenback.
“I do think the bull case for gold is going to be on hold for the rest of the year,” says Adam Klopfenstein, senior market strategist at commodities brokerage firm Lind-Waldock, according to the Associated Press.
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