In an interview with Kitco’s Daniela Cambone, Jim Rogers stated that he doesn’t think gold has found a bottom. “I bought a little more at $1,200 just in case, but I don’t think we made the final bottom.”
Rogers suggested gold might fall considerably in an interview with Max Keiser on RT last week. “It may go down another 20% or 30%. Who knows? But by the end of this decade, it will be much higher… I suspect we are in the process of making a complicated bottom which may take a few days, weeks, months, maybe even another year or two. But then, ultimately, gold will make its fabulous bottom… then it will be off to the races again.
“Eventually, I will start buying again,” Rogers said. “But I’m not selling my gold by any stretch of the imagination.”
Rogers noted the impact of the Fed’s recent decisions on gold prices, lamenting the myopia of policymakers. “The world can get along without central banks,” he suggested. “Fortunately, since they’re making so many mistakes, we’re going to get rid of them eventually,” citing the numerous bad calls made by Bernanke and Greenspan and the de-chartering of the previous two central banks in the U.S.
For now, the future of gold prices remains murky, largely tied to the Fed’s easing plans and its impact on gold futures. In the long term, however, central banks around the globe are quietly stockpiling the yellow metal.
“There isn’t a central bank in the world that wants to go back to a gold standard,” Jim Rickards opined in The Daily Reckoning yesterday. “But that’s not the point. The point is whether they will have to.” Rickards believes central banks are stocking up now to prepare for a storm in currency markets. Read more here .
For The Daily Reckoning
P.S. Despite the recovery, central banks across the globe are stockpiling gold at a breakneck rate. Click here to check out our short video to see why.
Jim Rickards joins Kitco's Daniella Cambone to discuss, the strong dollar, the Chinese yuan run at reserve currency status, the Greece debt crisis and more...
Jason M. Farrell is a writer based in Washington D.C. and Baltimore, MD. Before joining Agora Financial in 2012 he was a research fellow at the Center for Competitive Politics, where his work was cited by the New York Post, Albany Times Union and the New York State Senate. He has been published at United Liberty, The Federalist, The Daily Caller and LewRockwell.com among many other blogs and news sites.
All anyone has to do is pick up a geology book and realize there isn’t enough gold on the planet to back the US dollar and its debt let alone everyone elses. All the gold that has ever been mined would fit into a medium sized office building. Thats not bias on my part just the facts. Assuming the dollar or even everyones currency was backed by gold much of what you see out your window would not exist as there would not have been enough money to create it.
People in our community at American Hard Assets still believe that in the next couple of years, we will be looking at a gold price of around $3,500.
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