Why gold went up and now is down

We had an anomaly in the gold market. Gold went up 12 years in a row, which is very strange and unusual for any market. When the correction came, it too was an anomaly. At the same time, the Indians – who were the largest buyers of gold in the world – Indian politicians started blaming their problems on gold. So they took many measures to cut back their demand for gold, successfully.

Gold is still going down. India was a much bigger buyer than anyone else – so obviously when you take out demand from the largest buyer of anything, it causes a correction. That’s what been happening. Nothing unusual about it.

At the same time, many speculators and investors were cutting back after the 12-year bull market. That plus the Indians overwhelmed Chinese demand.

I still am not buying gold in any big way yet, because there are still too many mystics, too many people who think that gold is holy. I don’t see how the markets can make a bottom until a lot of those mystics get shaken out of the market. Once they throw in the towel, then gold will make a significant bottom, and I hope I’ll be buying a lot more at that time.  


via http://www.investing.com/news/commodities-news/investor-jim-rogers-talks-commodities-(q-a)-271156

This is how the how the final rally and collapse will unfold

They [Fed] will continue on the path they have stated until there is a lot of pain in the market, and then they will panic. And they will get in and stop cutting back. Everybody will heave a sense of relief and say its all going to be okay, the markets will get a rally and that will possibly be the final big rally. That may not be until 2015 or 2016, I dont know.

Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.

Pension Plans possibly at Risk of confiscation

The EU banking authorities have already made it possible for the governments to take peoples bank accounts.

The Federal Reserve has also made it possible in their regulation, in a desperate situation, they too will confiscate money from peoples banks account to save the Banks. They have decided the Banks are more important than the individuals and their money. 

Its happened in Poland. Poland has already confiscated some of their Pension plans. Other countries are preparing to confiscate pension plans. So its certainly going to happen in the US. Theres been bills introduced in congress. In 1930's they confiscated peoples Gold. This time they will confiscate pension plans. Theres a lot more money in pension plans than gold. 


Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.

Jim Rogers on John Williams hyperinflation scenario

On the possibility of Hyperinflation in the US in 2014:

John Williams is a smart guy. I certainly admire him. I would be skeptical that there is a dollar collapse in 2014 but anything is possible. My goodness there is enough madness in Washington and other parts of the world. So why not. I am long the US Dollar so I am not expecting it this year. The reason I am long the US Dollar is because there is going to be a lot of turmoil in the world, in the next year, two or three. 

And when there is turmoil people flee to the US Dollar, because they think its a "Safe Haven". 



Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.

China debt problems exist in other countries too

There are debt problems in China, just like debt problems anywhere in the world.

Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.

More risks leads to more problems

All those people doing the right things, they didn't go deep into debt, they didn't buy 5 or 6 houses with no money down. They are now getting wiped out to save the people who did it the wrong way. The people that saved their money are now getting no return. The way the government is talking this is going to continue for a while. This is not good for any of us. Unfortunately many people are taking more and more risks and often that leads to problems down the road.

Jim Rogers on why he owns Japanese Yen

I am watching Japan. I wouldnt mind buying some more Japanese shares. 

I actually also own the Japanese Yen for the first time in a while because there are/were huge short positions in the Japanese Yen.

Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.