Tags: Rogers | gold | buying | stocks

Jim Rogers: Gold Below $1,000 Would Represent Buying Opportunity

By    |   Friday, 16 May 2014 10:24 AM

Star investor Jim Rogers, chairman of Rogers Holdings, says gold will present a buying opportunity sometime in the next two years.

The precious metal has advanced 8 percent so far this year. But it has stalled around $1,300 an ounce since early April. June gold futures settled at $1,293.60 Thursday, down $12.30 from Wednesday.

"I'm not buying gold at the moment," Rogers tells Yahoo. "But if the opportunity comes along, and it will in the next year or two, I will buy more."

Editor's Note:
Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

A 50 percent decline from gold's September 2011 record high of $1,923.70 would fit the bill, he notes. And "if America goes to war with Iran, I'd be begging to buy at $1,600."

Asset classes frequently drop 50 percent every three to five years, so a major correction for gold is quite possible, Rogers argues.

So why has gold been unable to sustain its rally this year?

China, the top gold buyer in the world, has shown a lessened appetite for the metal, because the market there is "saturated," he notes. And investors around the world have demonstrated a preference for stocks.

"European and American stock markets are going through the roof. So people say they'd rather put their money in stocks that are going up," Rogers explains.

"Most people buy what's going up instead of what's going down."

Gold fell Thursday after news that U.S. jobless claims hit a seven-year low last week.

"Jobless claims dropping below 300,000 is a big deal and people are getting convinced that the economy is showing signs of recovery," Phil Streible, a senior commodity broker at R.J. O'Brien & Associates, tells Bloomberg.

"People don't need to invest in a safe-haven asset like gold when the economy is doing just fine."

Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

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Star investor Jim Rogers, chairman of Rogers Holdings, says gold will present a buying opportunity sometime in the next two years.
Rogers, gold, buying, stocks
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2014-24-16
Friday, 16 May 2014 10:24 AM
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