Jim Rogers has always been bullish on commodities over the long term, however, his sentiment is currently changing. Mr. Rogers notes that in strong bull markets, a 30% correction every two to three years should be expected. "Just be careful, there're too many bulls, including me, but I'm very cautious," Rogers told CNBC. "Gold is having a correction it's been correcting for 15-16 months now which is normal in my view, and it's possible that [the] correction is going to continue for a while longer." The safe haven asset has only seen a major correction once during the global financial crisis back in 2008 when bullion fell 32 percent. [youtube]http://www.youtube.com/watch?v=zRmCYCAbRRk[/youtube] In addition, India the largest consumer of gold globally could pose a threat to the price if it pulls back on demand. India's finance minister has blamed gold imports as primary drivers of the country's current account deficit, which could mean import duties on gold could double. Mr. Rogers is not buying gold at the moment, however he ends the interview with his iconic quote. "If gold goes down I hope I'm smart enough to buy more. If it goes down a lot, I hope I'm smart enough to buy a lot more." Source: http://wp.me/p2hryu-l3
^ to be honest I thought it was just his way of placating the inevitable cries of the PM bulls. Faber does it too, but he is a PM bull himself. Rogers is a trader.
I predicted this the other day..... If the U.S raises the debt ceiling again it will put off for at least a few years the huge bull market rush we 'were' all anticpating the sheeple would be discovering next year..... But now the whole ball game is up in the air again and Obama is trying to do very dodgy deals with the Repuclicans to buy more time..
come again? raising the debt ceiling is just what you want to see if you are looking for the bull market to continue.
Jim, the "Indiana Jones of Finance" is right, gold is having a correction. Marc Faber said the same thing. What did I say a few days ago about a 2013 crash? http://forums.silverstackers.com/topic-34159-potential-gold-crash-in-2013-page-3.html I am wondering how low this will go. If it dips below 1,500 $, that would hit a psychological limit and the "ordinary small investors" will panick. It's not selling that I'm worried about, but rather of "not buying enough". So the cascade might be getting more abrupt. Last summer it traded horizontally for a long time, but now it might even go lower. Some started talking about 1,200 - 1,400 per ounce.
If it hits the main stream media and my wife gets to hear about it I am going to have a grief filled christmas that's for sure. Ultimately it is not how much you buy it at but what you sell it for which is going to make the most difference. If it goes to $3000 no one will remember if they bought at $1500 or $1600.
I feel the same, there's a strong sense of Dj vu about the recent price action, press releases, sentiment etc etc - seems we have been here before!
Hmmm. I smell something in the room, and it ain't 'correction'. How much is the value of the high-frequency paper gold sell trades that come out of nowhere in thin trading after the London fix closes? What possible reason could exist for this activity apart from hammering the market price and destabilising gold as a value store? Has anyone made any form of reasoned analysis as to the profitability of these raids (if any?). If the Chinese are, as reported, stocking up on physical this seems to be a classic example of short-term gain leading to long-term pain as all the gold heads east, unless there is a honking great big red lever that is due to be pulled in Switzerland by the on-duty central banking mafia that trashes the markets as soon as a gold-backed Renminbi is announced.
It's already started gaining price. We had lows in May-June 2012, but also, let's not forget about December 2011. It skyrocketed after each dip. Kitco participants are bullish more than 60 %. My question is: won't Christmas, New Year, "End of the World", whatever influence the prices even further down? Personally I think there's a chance that the downtrend will continue.
I agree treasure hunter, a move lower is very likely IMO. There are other people on this forum however who believe that a move higher is more likely. I'm curious to see what plays out.
That's really interesting to hear because quite recently I was reading the exact opposite... i.e. gold always goes up quite significantly each and every time the debt ceiling is raised. In fact this makes sense to me - not the other way around as you have it.
And it is for this reason that I am hesitant to get too involved in gold. Government involvement...often ends...poorly
