Tuesday, July 28, 2015

Gold could bottom once China crisis passes

Many stocks in China are closed, so one cannot trade in those. The people who had margin calls and who had borrowed money had to sell anything to raise money, as they could not sell stocks.”

Once this artificial liquidation is over, I suspect base metals would be a good place to be in. The Chinese have borrowed against their copper and other base metals, so they were forced to sell when they got huge margin calls. I suspect we will see some kind of bottom going forward.

via ValueWalk

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.