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Jim Rogers: Gold Correction Could Last for Weeks

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September 26, 2011 – Comments (11) | RELATED TICKERS: GLD , CEF

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.

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11 Comments – Post Your Own

#1) On September 26, 2011 at 12:47 PM, kdakota630 (99.93) wrote:

Interesting Grandich update as well.

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#2) On September 26, 2011 at 12:49 PM, cbwang888 (27.32) wrote:

I'll also scratch $50/oz silver in 2011. Maybe 2012 ...

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#3) On September 26, 2011 at 12:50 PM, kdakota630 (99.93) wrote:

Gold Stupidity (worth a laugh)

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#4) On September 26, 2011 at 12:53 PM, SN3165 (< 20) wrote:

OMG to that video. You've got to be kiiding me lol

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#5) On September 26, 2011 at 2:25 PM, djemonk (< 20) wrote:

Excellent video. I had a good chuckle at that one.

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#6) On September 26, 2011 at 2:55 PM, leohaas (98.74) wrote:

So, gold isn't backed by anything? Oh no, so it is yet another fiat currency?

Where am I to put my money now?

Disclosure: long physical gold at the time of writing.

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#7) On September 26, 2011 at 3:46 PM, TMFSinchiruna (56.35) wrote:

Awesome video ... thanks for posting. :)

Sinclair exuded his characteristic confidence Friday when declaring $1,584 as a bottom for the coorrection. We dipped beneath intraday, but he always refers to successive closes when outlining price scenarios. We'll see if he's right, cause if not $1,480 comes up awfully quick.

The timing is interesting, as Europe appears to be prepping for a massive move to steady their debt crisis while providing for a Greek default. Those developments will be wildly bullish for gold and silver, while continued weakness here raises the specter of a momentous equity decline triggering further stimulus and/or policy action. While $2,000 gold / $50 silver just became far less likely for calendar 2011, I'm not yet prepared to suggest it's not possible.

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#8) On September 26, 2011 at 3:51 PM, TMFSinchiruna (56.35) wrote:

Also, fellow veterans of the pm space, when's the last time you observed a selloff like this that was not accompanied by substantial outflows from the bullion proxies? Likewise, when's the last time you saw a severe pm correction led to the downside by bullion rather than by equities? By several metrics, this correction is distinct from others we've seen. Given the margin increases, and the fact that it's been a futures selloff rather than a bullion selloff, I think there's a solid chance this correction will resolve itself in an expedient fashion.

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#9) On September 27, 2011 at 9:11 AM, batmandeadlifts (< 20) wrote:

Not a pm vet by any means but I read the situation as very different correction. The margin increases plus the fact that the market got hammered to new yearly lows dropped prices like a rock. Had very little to do with pm's value. I think we may see prices rise as quickly as they dropped and made a few purchases monday morning.

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#10) On September 29, 2011 at 1:18 PM, rfaramir (97.35) wrote:

"By several metrics, this correction is distinct from others we've seen. Given the margin increases, and the fact that it's been a futures selloff rather than a bullion selloff, I think there's a solid chance this correction will resolve itself in an expedient fashion."

Ah, this meshes with my thinking. (Of course, part of that is that your thinking influences mine.) Going into this year I truly thought we'd hit both $2000 and $50, but then retreat from those highs at the end of the year, then next year blow through them and never get much lower again.

I was surprised at how fast silver nearly hit $50 this spring and at its violent counter-reaction(s). I still don't think it'll be over $50 at year's end, but I was predicting the peak more in November/early December. Same with gold, with the extra surprise that its peak was so much later than silver's (Aug instead of April).

BTW, what are those "several metrics?"

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#11) On September 30, 2011 at 1:59 PM, Frankydontfailme (26.14) wrote: