JIM ROGERS

JIM ROGERS

Jim Rogers: Gold to Fall Further

Issue 39, April 2013

Gold will fall further, commodity bull Jim Rogers told Global Mining Observer from his garden in Singapore after prices buckled this week. He expects a 40 to 50 per cent correction from its all-time dollar high of $1,920, hit in April 2011. Gold closed at $1,382 in New York on Wednesday night.

A 60 per cent correction, he says, would “not be unusual.” In November he told this column that whilst he was bullish on gold, many short term indicators were bearish. “The number of people buying gold calls has skyrocketed,” he said at the time, with prices above $1,700. “If gold goes down, I hope I’m smart enough to buy more."

He is not currently adding to his gold holdings however. “I’m not buying yet. I’ve no idea how low it will go, but I hope it continues for a while, so we can get a good, solid panic bottom.”

Rogers, whose investment thesis runs something like, “Anything but US Treasuries,” is scathing of those who point to signs of US economic recovery. “If there’s a recovery in the US, it’s artificial. They’re going to keep printing money indefinitely. It’s the wrong thing to do, but it’s all they know.”

His political views differ markedly to those of his former trading partner George Soros, who this month told the South China Morning Post that gold has been “destroyed as a safe haven.”

In 2011, Soros described gold as “the ultimate bubble” and is rumoured to be shorting precious metals, having hired technical analyst John Roque last year. Roque has not spoken publicly since. “You may as well ask about my first wife,” Rogers says.

He believes that the EU and IMF bailout of Cyprus currently under negotiation, part funded by the sale of the bulk of the country’s gold reserves, has pushed traders into “dumping gold.” With Germany’s prime minister Angela Merkel facing an election this year, he adds, she is unlikely to take a soft line on other economies in need of Germany-backed ECB credit.

Ultra-loose monetary policies however he believes will drive gold “much higher” over the decade. “We still have governments everywhere printing staggering amounts of money. That hasn’t stopped. We may have a collapse or two in the interim, but money printing hasn’t stopped, deficit finance hasn’t stopped, the world still has plenty of problems to look forward to.”

“The world still has plenty of problems to look forward to.”

RELATED NEWS

Jim Rogers: US Government Paper
Will Suffer

Bow tie wearing commodities bull extremely bearish on government bonds

............................................

Eucalyptus Trees
Gold Leaf Australia's Exploration Dollar

Foliage can pinpoint precisely where to drill for gold, says Australian geologist

............................................

Jim Slater: Equities
are Perched on a
Knife-Edge

Europe's current troubles only a sideshow to the dangers posed by the US

............................................

Loeb-Aron-&-Co..jpeg
Hallgarten-&-Co..png

............................................

Edward Chancellor: China's Careering
Credit Boom

China is one big credit bubble, warns hedge fund adviser
Edward Chancellor

Bold Gold Deals
Move Increasingly
Into the Money

Klondex, Franco & Silver
Standard all move to capitalise
on bullion's cycle