Sunday, September 7, 2014

Jim Rogers thinks Gold will bottom in 2014

There are huge shorts that have developed in precious metals as you know. So they are overdue for a rally. We have had a big drop in 2013 and everybody got negative and everybody got short. So we are going to have a rally, though not too much of the rally. I am not going to either buy or sell that rally, but there will certainly be a rally. Later in the year, things will go down again and hopefully finally, we will make a nice bottom and we can buy gold again. I would prefer silver to gold. I am not buying either at the moment. Silver is down 60% from its all-time high and gold is down 30% or 35% from its all-time high. However, I am not going to buy either at the moment.

As most of our readers remember, Jim Rogers turned bearish near the top in 2011, and was a bear since then. It was the correct view to have and one of the reasons for the bear market according to Jim was because of Indians trying to decrease their Current account deficit. Because the demand went down as well as prices, their actions had the required result and India must soon stop with their anti-gold measures. Jim Rogers still think gold will make new bottom probably at much lower levels: $1,100 oz or even $900 oz.

Jim Rogers is a bestselling author, financial commentator and successful international investor. Rogers was a co-founder of the Quantum Fund (considered to be the first truly international fund of its kind) and is the creator of the Rogers International Commodities Index (RICI).

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