Jim Rogers awaits lower gold price

Gold falls to its lowest price for 5 years

Jim Rogers awaits lower gold price

Maverick investor Jim Rogers has revealed that he waiting for gold to go below US$1000 before buying more.

In response to Monday’s fall in the price of gold to US$1,088 (£697) an ounce in Asian trade, its lowest level since March 2010, Every Investor asked Rogers for his view on the precious metal.

His response was typically forthright and we have reproduced his comments in full below:

“I have explained for 5 years that I am not a buyer of gold or silver [except a few coins as gifts] since I expect a lower bottom. I own both and have not sold any, but I have hedged some.

Gold has not had a 50% correction for many years which is strange in markets. I have no idea if and when I will buy, but IF gold does have a 50% correction, it would be to US$960. There is nothing which says anything must decline 50%, but it is common. IF gold goes below US$1,000 I hope I am smart enough to buy more and close my hedges, unless something else is happening.

I have no idea what will happen: e.g. if America goes to war with Iran, I suspect I will be buying gold much higher.

There are still too many mystics in the gold market who think gold is holy so cannot decline. When/if they give up and throw their gold out the window because ‘she lied to me’, gold will make a firm bottom.

In the end gold will turn into a bubble when people lose confidence in governments and paper currency again, which will happen in the coming financial turmoil down the road.”

The writer holds physical gold and silver.

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About Author

Christopher Menon

Every Investor Editor Chris Menon is a financial journalist who has written regularly for national newspapers, magazines and websites about personal finance, with particular emphasis on investing.

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  • Steve Beshakas

    Jim, doesn’t the 50% correction rule apply to the “current” bull market? Your 960 number implies that gold started at zero, but the last bull started at 265/oz. So (1924 – 265) / 2 + 265 = 1095, give or take a buck or two. Looks like we’re there, and gold keeps bouncing off that number.

    • Payton David

      Don’t think there’s a need to be this precise. The real sign to watch for at the bottom is when the ‘mystics’ Jim refers to start dumping gold. He is probably referring to the mass market who listened and blindly followed the advice of gold dealers and hyperinflation theorists like the Peter Schiff’s, Mike Maloney’s, Richard Russell, the newsletter writers at Casey Research and many others. I think Jim is trying to make anyone who would listen to him understand that a huge part of the gold price is mass psychology, and as long as you are not on the same side as dumb money you’ll be fine. I don’t even think Jim would start to buy gold if it went down to $960 AND the hyperinflationists fans are still clinging on their gold waiting to get rich, the right time to buy will be when the dumb money starts to sell

      • praxeologue

        Re Doug Casey, I love posting this Youtube of his 1980 interview marketing his number 1 selling book (buy gold of course)… https://www.youtube.com/watch?v=easuUdhW4X0

        I think you have to consciously disregard the Gold bugs (who rarely identify as such). When gold is rising they are right, when it is falling it is a buying opportunity/a conspiracy/only a short term correction before the big rally etc.etc. Any investor who thinks they are never wrong should be avoided.

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