The gold price also came under fire on comments from legendary investor Jim Rogers, who stated in a presentation to business professionals in Chicago that the yellow metal is “overdue for a rest” and likely headed lower in the shorter-term. Rogers, who founded the Quantum Fund with George Soros in the 1970s and correctly predicted the start of the commodities bull market in 1999 has been bullish on the gold price for the better part of the past decade.Right now, he prefers agricultural commodities and silver - the latter, because its advance is relatively new. Silver's well below its inflation-adjusted 1980 high. He also said the best thing gold has going for it is central bank policy - not reserve-adding, but inflating. He foresees messes being made that'll impact economies once the immediate crises are over.
While Rogers has noted in the past that he is a “terrible market timer,” he still sees the price of gold moving south in the months ahead after a relentless run to new highs in the second half of 2010. However, although gold “may go down for awhile,” he reiterated his prediction that the gold price will surpass $2,000 “in this decade.” The Chairman of Rogers Holdings did not say if he is planning to sell any of his gold position due to his bearish near-term forecast.
Friday, January 14, 2011
Jim Rogers Skittish About Gold Right Now
At these prices, Jim Rongers thinks gold will not keep advancing much further until it's had a rest.