Wednesday, September 28, 2011

Jim Rogers Tells India Press Gold Will Decline For "Months" - Forbes

  A London Good Delivery bar, the standard for t...

Commodities guru Jim Rogers told The Economic Times of India that gold prices are likely to correct for the next six to eight weeks, but offers this bit of advice: buy on the dips.

“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,” he told India’s largest business daily.

“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,” Rogers said.

He told the ET that the correction was mostly due to panic selling in response to the political risks facing the markets in Europe and the U.S. “When fear permeates a market, everybody sells, especially the last ones in frequently have to jump out. They have raised margin requirements for both silver and gold. So that makes it more and more difficult for people to hold on. I barely pay attention to the price, but I know a lot of people do and that is why you have these sudden spikes up and down.”


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