Commodities guru Jim Rogers believes the current 15% correction in gold prices could continue for a while longer.
In an interview with OilPrice.com, Rogers said he is holding his current investment in gold rather than selling, and expected to be an aggressive buyer if the price falls to where he expects it to go.
Here is an excerpt from the full interview:
Oilprice.com: I've seen in other interviews that you've predicted that 2013 and 2014 will be bad years for the [US] economy. What is an investor to do? Are there any commodities, stock or instrument people can go to for safety and capital preservation?
Jim Rogers: No such thing as safe when you talk about it. Even if you put your money in cash, if you put your money in the wrong cash, you lose a lot of money. As the people in Iceland have found out, as the people in Europe on the Euro have found out. So, no such thing as safe.
What I have done is I own commodities on the theory that if the world economy gets better, I'll make money because of shortages. If the world economy does not get better, people will print money. The best way to save yourself when money printing is going on is to own commodities.
It does not mean between here and there, they can’t go down in a panic. In the meantime, commodities will be the thing to rally once that happens, but they can go down. Therefore, I have also short stocks as a hedge against myself. If the world economy doesn’t get better, you're going to be losing a lot of money in stocks.
Oilprice.com: Now are there any commodities you're particularly bullish on at this moment in time?
Jim Rogers: I'm more optimistic about agriculture than anything else, just because of the price. Most agriculture, I feel very depressed on the risk side basis. Sugar is 75% below where it was 38 years ago. There's not much in the world that's as depressed as agricultural current prices. So, I would say agriculture.
Oilprice.com: You’ve owned gold for 11 years now and the price is currently correcting. Do you see this as a buying opportunity or would you wait a little longer?
Jim Rogers: I've actually owned gold for longer than 11 years. I'm not buying now. Gold went up 11 years in a row, which is extremely unusual for any asset. I don't know of any asset in history that's gone up 11 years in a row without a correction.
Corrections are normal and are the way things should work, the way things do work. Having said that, I don't know when the correction will stop. It's normal in my experience for corrections to go down 30 or 40%. It's just the way markets work.
Gold has not gone down that much. It's only gone down that much once in the past 11 years, and even then it ended the year up. I'm not buying gold at the moment. If it goes down a lot, I hope I'm smart enough to buy a lot more. I'm certainly not selling my gold, because I suspect gold will be much, much, much higher over the next decade.
The full original interview is here »
----------------------------------------------
Comparative pricing
You can find our independent comparative pricing for bullion, coins, and used 'scrap' in both US dollars and New Zealand dollars which are updated on a daily basis here »
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.