Now Jim Rogers is Bearish on Gold

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Mike Swanson
Mike Swanson's picture
Last seen: 1 hour 34 min ago
Joined: 10/15/2010 - 06:21
Now Jim Rogers is Bearish on Gold

Rogers, who co-founded the Quantum Fund with George Soros in the 1970s and is a well-known commodities bull, also said he remains bullish on commodities in general but expects gold will drop further given the run-up over the last 10 years.

"In my view, gold could go to $1,200-$1,300 (an ounce)... Gold has been up 11 years in a row which is extremely unusual in any financial asset so gold is overdue for a correction," he told Reuters Insider in Singapore where he now resides.

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Last seen: 4 hours 22 min ago
Joined: 03/31/2011 - 11:17

It's true, gold has been in an uptrend for 11 years and maybe it will correct further. Debt has been in a serious uptrend since WW1. It should correct as well. Sometimes these trends defy logic.

kaibo888 (not verified)
Too right!

With what gold did last year in reversal of the 'safe haven' into a 'risk asset' drove many commentators crazy. Goldman Sachs is now calling 'bulls' in 2012. Bank of America called 'bulls' the other day as well.

The article is a report by Przemyslaw Radomski who seems to like calling the upside. Maybe he can take Jon Nadler's job at Kitco to support what we want - 2000 dollar gold and 100 dollar silver in 2012.


What a difference a day made, twenty four little hours
Brought the sun and the flowers where there used to be rain

It seemed all doom and gloom for gold bulls which further lends weight to SENTIMENT as a key driver for PMs. "Trends sometimes defy logic" - too right they do Glen! It may yet do a 'dip' but a big downtrend seems unlikely. Especially as QE is perpetual and oil is forecast to rise. That will be my 'best call' of 2012 and one that has been echoed since I called it before all the reports are echoing the forecast. It will feel good to be right!

Jeb Handwerger had this to say:

We believe that the markets are reacting irrationally to rational fears of deflation compounded by a flight to cash in fear of risk. Gold Stock Trades has reiterated on many occasions that it is inadvisable to fight the Fed. On numerous occasions we said with one stroke of the pen the Central Bankers could reverse the entire market.

This year’s surprise twist resulted in reversing a precious metals market that was on the verge of a runaway upward move.

There was also a coordinated effort by the Japanese (FXY) and the Swiss (FXF) to boost the dollar and devalue their supposedly, safe haven yen and franc over the past few months and at the same time revive their own struggling economies. It may be that the Fed wanted to lower gold and silver prices and lift the dollar before instituting its next round of QE3 in the 2012 election year. This year may not have been the right time to weaken the U.S. dollar, especially as Europe struggles with its own debt crisis and China deals with its own weakening economy.

To avoid a domino contagion effect in Europe and to prevent nations from collapsing, actions were taken by the Fed to stall rising commodities, prevent a collapse in the U.S. dollar and keep a cheap Euro so peripheral nations have an easier time paying down debts. Best to save the PIIGS, through a cheap Euro and reserve QE3 for later.

See excerpts from Radomski below:

Gold prices will rally again in 2012 to reach $2,000 to $2,500 per ounce according to a commodities strategist at Bank of America Merrill Lynch.

UBS has reiterated its bullish outlook for gold and believes gold will average $2,050/oz in 2012.

Barclays Capital says gold will average $2,000/oz in 2012 – which is 25% above today’s spot price.

John Embry, chief investment strategist of Sprott Asset Management, said the price of the yellow metal could possibly exceed $2,500 in the next 12 months.

Australia's Bureau of Resources and Energy Economics forecast in its December quarterly report that gold prices in 2012 would still go up 17 per cent to $1,850 an ounce.

Predictions about silver in the first quarter varied from $24.35 per ounce to $57.50 with a mean average of $34.04, and from $23 to $130 with the average of $48.73 by the end of 2012.

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rileysmith44's picture
Last seen: 1 day 1 hour ago
Joined: 11/14/2010 - 12:15
Nice post

This simpleton could clearly note all the ambiguity in gold and silver markets. Thanks Riley

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