While gold has had a rough time this year, it doesn't matter, as legendary investor Jim Rogers is keeping his gold holdings and he shares his reasons why.
NANCY: Welcome and thanks for joining us. My guest today is Jim Rogers and we’re talking about the price of gold. Hi Jim, thanks for being here.
JIM ROGERS: I’m delighted to be here Nancy.
NANCY: So are we having a rally in gold right now? A mini rally?
JIM ROGERS: Yes and no; it depends on which day you’re talking about. I own gold and I’ve owned gold for many, many decades. The situation with gold, gold went up 12 years in a row and Nancy, I know of no asset in history that’s gone up 12 years without a down year, so the anomaly has been how strong gold was, so gold is now correcting. In my view, the correction will be an anomaly too, because of the previous 12 years, so I would suspect you’ll gold have correcting for a year…two….three, I don’t know how long, and how low it will go, but it’s not going to be normal. There’s still too many people who believe and not enough people who’ve given up on gold yet. So I own gold. I haven’t sold any gold. Every once in awhile when it’s down, I buy more. But the bottom, I don’t think is in. The final bottom is not in yet.
NANCY: But if you were an individual investor and, you know, one view of the market’s been really great for individual investors up until just recently, but some people are getting a little scared that we’re topping out here, so would you be a buyer of gold and, if so, what would you be buying—ETFs, mining shares, the bullion?
JIM ROGERS: Well, I wouldn’t be buying anything and you said gold’s been good. No, everybody who bought gold in the last three years is losing money, so gold has not been good.
NANCY: Right…not the market, the stock market, not the gold market.
JIM ROGERS: Oh, the stock market…..okay. Well, I am not buying gold. When it went to $1200 I bought a little bit just in case, and if it’s goes back to $1100 or something, I’m sure I’ll buy more just in case, but no I expect the bottom, the market bottom, to be sometime maybe later this year or next year. I think there will be another chance to buy gold.
NANCY: Then how high do you think it will go. Are you even forecasting that?
JIM ROGERS: Well, I’m not forecasting because if the value of the papered money, if the value of the dollar becomes debased – if it turns into confetti – there is no high.
NANCY: Sure, yeah exactly.
JIM ROGERS: It’s astonishing how high the price would go, and they are continuing to debase paper money all over the world. It’s a conscious policy by everybody, so no, I expect the ultimate price of gold to be who knows, partly because the money everywhere is going to be debased more and more.
NANCY: Do you hold bullion primarily? Is that what you buy?
JIM ROGERS: I own ETFs and I own physical gold, yes.
NANCY: Okay, well thank you, appreciate having you here.
NANCY: Thank you.
NANCY: Thanks for being with us on the Moneyshow.com video network.