Jim Rogers 'Not Buying Gold Yet'
hedge-fund manager and commodities guru Jim Rogers says that he's
waiting for this current drop in the price to cut deeper before
he'll be ready to increase his position by Buying
with Hungarian speculator George Soros of the Quantum Fund in the
1970s, and creator of the Rogers International Commodities Index
in 1998, Jim Rogers spoke about his Gold Buying strategy on CNBC
"In December you told me gold would consolidate," said
anchor Maria Bartiromo. "It has certainly consolidated."
add [to my position] somewhere along the line, but not for a while,"
explained Rogers. "Gold has been up 11 years running, that's
very unusual. Things should correct.
"If gold went down 35% or 40% it would go to $1200...But that's
normal, markets correct.
the way things are supposed to work, and that would be good for
gold in the long run."
view contrasts with that of Frank Holmes, CEO of the $2 billion
US Global Investors fund management group, who last week outlined
5 reasons why this price drop offers a good chance to start Buying
government debt has doubled in 3 years to $8 trillion;
- Real interest
rates are below zero and "historically, when the inflationary
rate is greater than the current short-term interest rate, gold
central banks are Buying
Gold in greater quantities;
- China is
overtaking India as the world's #1 gold consumer market;
- India has
reversed this year's new excise duty on gold jewelry, responding
to a sector-wide strike and so encouraging Indian households to
now things are happening," counters Jim Rogers, pointing to
India's sharply higher Gold
Bullion import duty "strict measures to kill demand
for gold" because New Delhi fears India's yawning trade
deficit, and blames gold imports for widening it.
of the European countries may have to sell their gold too,"
Rogers adds. Such events "could surprise us all, even me, who's
looking for a correction."
from Bullion Vault Gold
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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Vault Gold News
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