US dollar is not a safe haven but still hold on to it: Jim Rogers
The US dollar is far from being a safe haven. The US economy is barely recovering, unemployment still reigns high and consumption is not picking pace at which the US Fed had assumed. Still, the latter insists of curing the economy's ills through reckless money printing. This then means that the value of the dollar is bound to decline. And yet, famed investor Jim Rogers owns the US dollar and believes that it is a good investment bet in the short term. He acknowledges the problems of owning the dollar. But is of the view that since Europe is deep in the doldrums, the US dollar has been gaining in relative terms. The question is how long these gains will sustain. As long as the US Fed continues to address issues in the same manner as it has been doing until now, the dollar is bound to lose value. In such a scenario, gold becomes the best safe haven against paper currencies. True, the precious metal has been witnessing declines in recent times. But that is only because it has been up for 11 years in a row. And so a correction is in due order.