Monday, January 27, 2014

Gold to rally a bit and then fall down this year to create a bottom

There are huge shorts that have developed in precious metals as you know. So they are overdue for a rally. We have had a big drop in 2013 and everybody got negative and everybody got short.

So we are going to have a rally, though not too much of the rally. I am not going to either buy or sell that rally, but there will certainly be a rally.

Later in the year, things will go down again and hopefully finally, we will make a nice bottom and we can buy gold again. I would prefer silver to gold. I am not buying either at the moment. Silver is down 60% from its all-time high and gold is down 30% or 35% from its all-time high. 

However, I am not going to buy either at the moment.

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