Tags: Rogers | gold | 1000 | dollar

Jim Rogers: If Gold Falls Below $1,000, 'I Hope I'm Smart Enough to Buy'

By    |   Friday, 20 March 2015 06:20 AM

Gold dropped to a four-month low this week, and many experts expect the drop to continue amid the dollar's surge and speculation about when the Federal Reserve will begin raising interest rates.
 
If that does happen, star investor Jim Rogers is ready to pounce.
 
"I own gold, but I'm not buying more gold at the moment," he tells Hard Assets Investor. "If gold goes under $1,000, I hope I'm smart enough to step up and buy more gold — maybe even a lot of gold."
 
He notes that gold hasn't endured a 50 percent correction in at least 15 years. "That's very unusual, because most assets [commodities] have 50 percent corrections every few years."
 
Rogers also owns the U.S. dollar. "I'm certainly not rushing out to buy at the moment. I've owned it for a couple of years. . . . I don't have any confidence in the U.S. dollar to lead long term. After all, America's the largest debtor nation in the history of the world, and our debts are going higher and higher all the time," he explains.
 
"The U.S. dollar could turn into a bubble down the road. If it does, and if I'm still there, and if I've got any brains, I hope I'm smart enough to sell it."
 
Daniel Belchers, a commodities fund manager at Threadneedle Investments, is one who sees gold falling further.
 
"In this environment, where the U.S. dollar is strong and will probably get stronger with a rise in rates, that won't be good for gold," he tells The Wall Street Journal.
 
"If you're looking at U.S. dollar strength, and U.S. economic strength, it's going to be difficult for gold to do anything in that environment."
 
The dollar has reached multi-year highs against a range of currencies in recent weeks. That includes a 12-year peak against the euro this week and a seven-year zenith against the yen last week.
 
And many experts expect the rally to continue, with the euro falling below $1.
 
As for the Fed, many economists expect it to start increasing rates in June or July. It has kept its federal funds rate target at a record low of zero to 0.25 percent since December 2008.

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Gold dropped to a four-month low this week, and many experts expect the drop to continue amid the dollar's surge and speculation about when the Federal Reserve will begin raising interest rates.
Rogers, gold, 1000, dollar
368
2015-20-20
Friday, 20 March 2015 06:20 AM
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