Gold Maniacs vs. Goldbugs

Today`s gold maniacs are the Goldbug, investors who believe that this ancient precious metal is the only currency with lasting value and that an explosion in its price is ever nigh. A gloomy bunch, the Goldbugs buy gold and hold it as insurance against corporate stupidity, a real estate crash, a stock market meltdown, or the collapse of the U.S. Dollar, not to mention world worldwide financial chaos. Disturbed by visions of their children living in a future shantytown in a deserted area once known as Wall Street, the Goldbugs`solution is to buy more gold, at any price.

This attachment to gold is certainly fascinating from a psychological point of view, but following an obsession is not the best investment philosophy.

Related stocks and Exchange Traded Funds:  Newmont Mining (NEM), Barrick Gold (ABX), Market Vectors Gold Miners ETF (GDX), SPDR Gold Trust ETF (GLD), Freeport McMoran (FCX)


Jim Rogers is a bestselling author, financial commentator and successful international investor. Rogers was a co-founder of the Quantum Fund (considered to be the first truly international fund of its kind) and is the creator of the Rogers International Commodities Index (RICI).