Tags: Rogers | gold | correction | 1 | 155

Rogers: Correction May Take Gold below $1,200

By    |   Friday, 06 Jul 2012 07:42 AM

Legendary investor Jim Rogers remains a long-term bull on gold, but thinks the precious metal’s correction may still have a long way to go.

At around $1,600 an ounce, gold is down about 17 percent from last year’s record peak of $1,924.

Gold has been in a bull market for the past 11 years, and Rogers, who has owned it for longer than that period, tells Oilprice.com, “I don't know of any asset in history that's gone up 11 years in a row without a correction.”

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

As a result, he’s not buying any more now. “Corrections are normal and are the way things should work, the way things do work,” Rogers says.

“Having said that, I don't know when the correction will stop. It's normal in my experience for corrections to go down 30 or 40 percent.”

A 40 percent drop from its peak would send gold to $1,154.

“It's only gone down that much once in the past 11 years, and even then it ended the year up,” Rogers says.

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

“If it goes down a lot, I hope I'm smart enough to buy a lot more. I’m certainly not selling my gold, because I suspect gold will be much, much, much higher over the next decade.”

The global economic slowdown is hurting gold, quelling fears of high inflation. "Deflation at this particular point is the overwhelming worry," Frank McGhee, head precious metals trader at IBS
Metals, tells Reuters.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
269
2012-42-06
Friday, 06 Jul 2012 07:42 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved