Tech Ticker: Famed investor Jim Rogers is "quite sure gold will go over $2000 per ounce during this bull market."

Rogers’ confidence gold will continue to rally stems from a view the U.S. dollar is on its way to losing status as the world’s reserve currency.

"Is it going to happen? Yes," Rogers says. "I don’t like saying it [and] I’m extremely worried about it but we have to deal with the facts. America is not getting better [and] the dollar is going to be replaced just like pound sterling [was]."

Rogers didn’t offer a timetable, and it’s likely gold would exceed $2000 per ounce if the dollar were to lose its reserve status.

Still, "I wouldn’t buy gold today," Rogers says. "I think I’ll make more money in other commodities, which are cheaper," as discussed in more detail here.

My comment: I think you really have to love the leverage the gold stocks have at these levels. If you own a gold stock that is mining gold at $400 per ounce or less and selling it for over a thousand dollars per ounce the math works out rather nicely. One must remember that gold stocks are stocks and if the general stock market goes down then gold stocks usually go down in sympathy. However as the gold mining companies start reporting record cashflow and earnings I think they get revalued upwards. Speculating in gold stocks can be very profitable but it is very difficult separating the wheat from the chaff. the Real Deal Actionable Intelligence Report identifies those gold mining stocks with real prospects and separates out the liars standing next to a hole in the ground. Click here for more information.

John Polomny
The Real Deal