Jim Rogers laughs at those who believe in manipulation..not buying gold
carew4me
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JIM ROGERS: If India Can Successfully Convince Its People To Sell Gold, Then Who Knows How Low Prices Can Go?
Dec. 20, 2013, 12:44 PM2,5375
REUTERS/Brendan McDermid
Gold has had a nice runup for over a decade now, but it has taken a beating this year.
The yellow metal is currently trading at three-year lows.
We reached out to commodities expert Jim Rogers for his take on what will happen next in the gold markets.
Business Insider: How much lower do you expect gold prices to go?
Jim Rogers: I am useless as a market timer/trader. Having said that, a 50% correction is normal in markets so why not in gold? The 12-year rise was an anomaly in markets so the correction may continue to be an anomaly. There will be rallies after big drops, but I expect another opportunity to buy gold.
BI: What do you think is behind the sell-off?
JR: [1] The anomaly of the 12-year rise, for one thing. [2] India as we have discussed before. Indian politicians are blaming their problems on gold, so [they] have added special taxes, tariffs, controls, and regulations. Pakistan and Bangladesh even totally banned imports of gold at one time.
The politicians are now trying to figure out ways to force Indians to sell gold. There are staggering amounts of gold there. The politicians are now trying to hit the temples which have accumulated an unimaginable amount of gold over the centuries. I have no idea if they will succeed at either, but the effort is having an effect. If they are successful to any degree, it will have an even bigger effect. India has been the largest buyer of gold for decades. Cutting back the purchases has already had an effect. IF they can force the largest buyer to become a seller [much less a larger seller], who knows how low gold could go? [3] A lot of people leveraged themselves too which hurts on the downside. Etc., etc.
BI. Are you buying gold? If not when would you buy gold?
JR: No. I hedged some again a little while ago. ... I wish I knew. Read Business Insider to get answers to questions like that.
BI: Do you think the faithful are finally throwing the towel in?
JR: No. Most of them are still denying reality saying it cannot happen, etc. They are also blaming it on manipulation still. They did not blame anything on manipulation on the way up, but are now finding all sorts of excuses. [I also find it interesting that I have not seen a single comment from them or anyone else about changes in India – the largest buyer in the world. The whole thing is “manipulation”.]
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Knowledge is the enemy of fear
I think his comment that no one was complaining about manipulation on the way up is a bit tongue-in-cheek. Since when do people complain about unexpected profits
Speaking of India this story is getting some attention over there The Government wants to know how much gold temples possess
<< <i>One of the guys on my team is in India and we talk metal once in a while. Nobody there is 'selling' gold. >>
Nobody? not a single one of the billion Indians? Must have taken a long time to ask everybody. Plus, we'll assume they were ALL telling the truth.
Liberty: Parent of Science & Industry
<< <i>
<< <i>One of the guys on my team is in India and we talk metal once in a while. Nobody there is 'selling' gold. >>
Nobody? not a single one of the billion Indians? Must have taken a long time to ask everybody. Plus, we'll assume they were ALL telling the truth. >>
Yes he talks to the whole sub-continent, we had him on that project all year.
You know what I meant. Dealers who sell gold are still selling gold. All the tax law changes they implemented aren't spawning the J6P 'stackers' over there to rush out and get rid of what they have unless necessary.
Rogers: "The politicians are now trying to figure out ways to force Indians to sell gold. There are staggering amounts of gold there. The politicians are now trying to hit the temples which have accumulated an unimaginable amount of gold over the centuries. I have no idea if they will succeed at either, but the effort is having an effect. If they are successful to any degree, it will have an even bigger effect."
Sounds like manipulation to me. Also sounds like Rogers is aware that the manipulation does have an effect.
People as smart as Rogers provide as much insight with what they don't say.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I'm surprised his only answer to the sell-off was "Indian politicians." IMO the major reason is the stabilization of the Euro (when is the last time you heard talk of default in Greece, Spain, or other Euro nation), and improved economic outlook in the US.
Knowledge is the enemy of fear
So, same why as most of us here on this board!
Liberty: Parent of Science & Industry
<< <i>There was a great story on 60 Minutes about why Indians buy so much gold. They interviewed two women who stated they would never part with their gold, because it becomes part of their being.
So, same why as most of us here on this board! >>
You would never part with your gold?
Even I have my price.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Knowledge is the enemy of fear
<< <i>All I know is that anyone who bought gold over 1700 has sold it for a small profit at 1800+ or a small loss in the 1500. No one owns any gold north of 1700. I heard this on an internet chatroom. >>
You would know more if you read more than just the chatroom posts. Sometimes the links they offer have good information from knowledgable sources. This, of course, depends on ones ability to objectively analyze differing opinions.
Its not about having faith in gold. It's all about the faith one has in the FED, it's monetary policy, and it's inability to solve economic problems that it creates.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
That's what I heard as well. The problem is, no one can produce a single person that bought at $1700 or higher and is still holding on today. If there is such a person, let them come forward. Jim Rogers seems to blow with the wind. The last interview I read of his was that he was buying small amounts of gold at $1200-$1300. Now he says he won't touch it. I guess it depends on the wind direction. He has a following and can't deviate too far from the media view. We have written proof that govts and the FED manipulated gold in the 1960's and 1970's. Now why in the heck would they NOT manipulate during the period from 1994-2013? You know what they say about something that looks like a duck and quacks like a duck. If I were a member of the FED governors, inner USTreasury elite, etc. I'd sure as heck would be manipulating gold or helping my bankers do it. It's a no brainer.
I'm still waiting for either one of the following as I've heard both of them still exist:
1. Someone who bought gold at $875 in January 1980 and then sold out at the very bottom in 2000-2001.....OR....is still holding on today 33 years later.
2. A Japanese soldier from WW2 still hiding out in the remote islands of the Pacific Ocean that doesn't know the war ended.
I'm not sure which one is more likely.