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Rogers: Gold in a 50 Percent Correction? 'Why Not?'

By    |   Sunday, 22 Dec 2013 02:06 PM

Gold fell to a three-year low last week but the metal's descent may be far from over, says star investor Jim Rogers, chairman of Rogers Holdings.

"A 50 percent correction is normal in markets, so why not in gold?" Rogers told Business Insider. "The 12-year rise [2001-2012] was an anomaly in markets, so the correction may continue to be an anomaly. There will be rallies after big drops, but I expect another opportunity to buy gold." 

The metal hit a record high of $1,921 an ounce in September 2011. A 50 percent drop from that level would put gold at $960.50. 

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February gold futures rose $10.10 on Friday to settle at $1,203.70 on the New York Comex.

Rogers attributes the metal's decline not only to the 12-year "anomaly" but also to developments in India, the world's second-biggest gold buyer.

"Indian politicians are blaming their problems on gold, so [they] have added special taxes, tariffs, controls, and regulations," he said. "The politicians are now trying to figure out ways to force Indians to sell gold."

If they succeed, "who knows how low gold could go?" Rogers said.

Many experts agree that the metal has more room to fall.

"Downside risk still exists for gold, as the Fed has only just started to taper," Nick Bullman, manager of Bullman Asset Management told Reuters. "And people have become very negative toward the metal because there is no sign of inflation."

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Gold fell to a three-year low last week but the metal's descent may be far from over, says star investor JimRogers, chairman of Rogers Holdings.
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2013-06-22
Sunday, 22 Dec 2013 02:06 PM
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