Jim Rogers was recently interviewed by The Economic Times about the need to own real assets in India. During this interview, Mr. Rogers explained how he is not buying gold at these levels because he expects further downside to come. Excerpts from his interview below.
Q: How much further do you think gold can move up to – internationally or possibly in India?
Jim Rogers: “I bought some internationally when it collapsed. When it got to $1200, I bought some just in case I suspect that there are going to be future opportunities in the international markets. India has got their situation with your currency which makes it more and more difficult for you to judge the timing because you have to get the currency and the western price of gold right. I am not buying gold in the west at the moment. I am just watching, expecting another chance to buy. But if war breaks out in the next week or month or something, who knows how high India is going to go and it looks like war might break out.”
Q: If indeed there are these Middle Eastern tensions that come out as well, do you think prices of both gold and crude will go up in the near term?
JR: “They will absolutely move up. They will certainly move up. They might move up so much that one will have to sell them. They may spike up depending upon what kind of war it is and how the war evolves. If oil goes up to a couple of hundred dollars a barrel on the war, then I would probably have to sell it because it would be a spike and no matter how bad the war is, I do not think it would keep the prices that high. Likewise with gold, if it went up a whole lot, I would have to sell it and it could happen. But at the moment, I am not buying gold or oil in the west. In India, you have a serious problem because of your economy and your currency. You do need to own real assets in India.”
If you have been following what Mr. Rogers has been saying about gold for the past few months, these recent statements might have come as a surprise to you. Back in June, Mr. Rogers was calling a possible bottom for gold as he publicly stated that he was a buyer. Watch the video below for more information on his June calls.