Jim Rogers: “This is Not The 1920s; There is No Reason For The Government To Manipulate Gold Or Silver, I Don’t Buy It”

By Tekoa Da Silva http://bullmarketthinking.com/

I reconnected yesterday with legendary investor and commodities bull, Jim Rogers. He shared thoughts on the US Fed’s recent announcement of over $1.2 trillion in annual debt monitization, the current correction in precious metals & corresponding debates of manipulation, agriculture, as well as the best long and short positions in the world at this time.

Starting our conversation on the recent correction in precious metals, Jim said, “The CFTC numbers show that the number of speculators piling into gold and silver has gone up a lot in the last several weeks. You have twice as many people buying gold calls as buying gold puts—there’s a lot of bullishness in gold, so it’s not surprising to me at all that it’s correcting.” “

In view of further downside, Jim added that, “Precious metals in my view need to continue to correct. Gold has been up 12 years in a row, which is extremely unusual in my experience. Also gold has only had one 30% correction in 12 years. That too is extremely unusual in markets…Most things even in a bull market correct 30% every one or two or three years…India  [for example] is the largest buyer of gold in the world and has been for a long time, so if India does something to hit gold, or to cut imports, it could have a big drop.”

When asked his thoughts on political or trading manipulation in the metals, he quipped, “This is not the 1920s or 1930s, when gold was central to the world monetary system. There’s no reason for them to manipulate it. In my view that’s mainly been disgruntled bulls over the past 30 years…I don’t buy it. There’s no reason for the government to manipulate gold or silver.”...continue reading...