Gold Price Correction Will Last for Several Months;
Buy on Dips: Jim Rogers
In an interview with ET Now, Jim Rogers, Chairman,
Rogers Holdings, shares his outlook on commodities and the falling
Gold has been down 10% in the past week and is at an 8-week
low today. Given this, what is your outlook for gold prices and
do you see gold near $2000 per ounce in the near to medium term?
We have discussed before that gold has been up 10 years in a row,
which is very unusual in any asset class. So if it is up this year
or 11 years in a row, gold is overdue for a correction and it could
have a nice substantial correction given that it has been so strong.
I have no idea what is going to happen this year. I doubt if it
will go to $2000 an ounce in 2011, it is more likely to have a correction
which will last for several weeks, several months. It has been very
strong. If it goes down some more, I would buy more gold as I have
told you many times.
Silver has been one of your favourites, but that is down 24%
in the past week. Are you still buying?
Not yet, but if silver continues to go down as we have discussed
before, I will buy more silver too. Do not sell your silver, do
not sell your gold unless you are a short-term trader, but anybody
who is in this for a long term, silver and gold will both go much
higher over the next few years.
Then, let's talk about base metals. Copper has seen quite a
drubbing down 30% over the last one month. Are you seeing more downside
for most of these base metals?
That is a big big sell off, 30% in anything in that shorter period
of time. So it is a shock, but I would expect most things to continue
to correct and react because the world has got serious problems
facing in the future. Base metals will be affected by reduced demand.
Other commodities will continue to do well, but base metals certainly
would be affected by reduction in demand and you know what is happening
in Europe, you know what is happening in America. So be careful.
I am not selling any of my commodities. I am not selling my base
metals, but I am not jumping in to buy either.
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Rogers has taught finance at Columbia University's business school
and is a media commentator worldwide. He is the author of Adventure
Gift to My Children, and A
Bull in China. See his
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