Case for higher gold prices

Jim Rogers recently said, "If there is a shock to the system, such as a eurozone country like Spain going bankrupt... I hope I am smart or alert enough to buy more gold at that point." Gold prices had gold bugs giddy in the fall of 2011. In September, the luminous yellow metal touched an intraday high of $1,920 a troy ounce, putting the precious metal up roughly 35% for the year. At the time it seemed like investors, traders and even the guy at the corner store were all buying, hoarding, and lusting for gold. But the stellar gains were short lived, and by the end of the year gold prices had fallen by nearly 20%. Part of the striking decline in gold was due to the fact that the "smart" money that had once been amongst gold's biggest cheerleaders, sold it. Some booked profits, some sold it to reflect gains in portfolios, others were forced to sell to meet margin requirements, and others wanted to start the New Year with a clean slate. Continue reading this article

.