Monday, April 23, 2012

Jim Rogers Ready to Buy Gold

Commodities investor Jim Rogers is poised to add to his gold position as he anticipates a potential systemic shock, such as eurozone bankruptcy or further Indian tax hikes, may lead to further weakness in the spot price, reports UK's Investment Week.

Rogers, speaking exclusively to Investment Week, said a substantial “shock to the system” would lead to it correcting further, creating a buying opportunity.

“If there is a shock to the system, such as a eurozone country like Spain going bankrupt, then everything will go down, and I hope I am smart or alert enough to buy more gold at that point,” Roger said.

Rogers indicated another shock to the gold price might be India increasing taxes on gold. In mid-March, the Indian government already raised the tax level for gold bars, coins and platinum to 4%, up from 2% in January.

“There is talk of India increasing taxes on the price of gold further and therefore limiting its input to the gold market – this would be a point where I would buy more gold,” Rogers said.

[Gold] has been correcting for seven months now so I would not be surprised if it continued to do so. The lower it goes, the more interested I will get,” he said.

1 comment:

  1. I think Jim is on the money here.

    Just from my conversations with others...they're waiting for gold to come in so that they can buy.

    I believe any significant decline (or "shock to the system" as Rogers put it) will be short-lived as many people are licking their chops.

    Central Bankers (of course) will "come to the rescue" with a deluge of money, making gold that much more of a great asset to own.