Tuesday, May 15, 2012

Jim Rogers: Gold Bull Market Not Through Yet

In an interview with Forbes, billionaire Jim Rogers was asked what his thoughts on gold were.

Rogers noted that it's unusual for any asset class to continue to go up for eleven years in a row like gold has, so it's not surprising to him that we are going through a period of correction, which Rogers believes will probably continue for a time.

There has been a flight to the U.S. dollar for safety as the euro drops in value against it. That has been the major impetus for the fall in gold prices.

Rogers also adds that the "The Indians are coming down hard on gold, and they’re the largest consumer of gold in the world."

He thinks that will keep pressure on gold for now, and he asserts that "if it goes down further – I hope I’m smart enough to buy more. To buy a lot more."

In the past Rogers has said if the price of gold falls below $1,600 an ounce, he'll become a buyer again. As of this writing gold is trading at just above $1,551 an ounce, suggesting Rogers has probably already been buying gold.

His conclusion is the gold bull market is far from over yet, and he'll continue to be a player, saying he continues to be a buyer and not a seller, although he is now thinking about hedging gold.

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