The gold selloff could last for several weeks, months maybe, which is normal after a 10-year rally but investors shouldn't ditch the asset altogether but buy amid price dips, says international investor Jim Rogers.
"Gold has been up 10 years in a row, which is very unusual in any asset class. So if it is up this year or 11 years in a row, gold is overdue for a correction and it could have a nice substantial correction given that it has been so strong," Rogers tells the Economic Times.
"I doubt if it will go to $2,000 an ounce in 2011, it is more likely to have a correction which will last for several weeks, several months," he said. [more]
It’s one of the great mysteries of the market this year. For the first half of the year, the HUI Gold Bugs Index — made up of gold mining stocks — was down 9%, despite the fact that the price of gold was up 30%. What gives?
Normally, gold stocks give its investors some leverage to the gold price. Historically, gold stocks move 2-3% for every 1% move in gold. Not so in 2011. [more]
Loose monetary policies designed to increase jobs demand and ultimately, economic growth, may open the way to just a little inflation.