Gold price tumbles on reports of de-escalating Middle East tensions
Gold plunged 3% after Axios reported that Israel and Lebanon have accepted the terms of a ceasefire agreement.
Jim Rogers told Kitco (video embed below) that if gold closes 2012 higher, it will be an unrivaled accomplishment.
“If gold stays up this year, this will be the 12th consecutive year that gold rises. That is extremely unusual,” says Rogers.
“I don’t know of any asset in history that has gone up 12 years in a row without a down year. There may be some, but I don’t know about it.”
Spot gold finished 2011 at $1,566/oz.
Last week gold dropped to four-month lows, but it is still up 3.1% from a year ago to the current price of $1,657.80.
Despite the run Rogers says he is not a buyer or a seller of bullion.
“Gold has been correcting for 15 months. And it has been going sideways since September 2011. It would not surprise me if that correction continues,” says Rogers.
“If gold goes down more, I hope to buy more. If it goes down a lot, I hope to buy a lot more.”
Rogers cautions investors about 2013. Difficult times like ahead, and investors better know what they are doing.
“Only invest in what you know a lot about. If you don’t know anything about stocks, don’t invest in stocks.
“It’s better to do nothing. Put your money into a bank and earn 1/2 percent if that’s what it takes. It’s better to do that then lose 1/2 percent per year. If you don’t believe me, try it for a few years.”
Image by N1NJ4 from Flickr’s creative commons
2 Comments
Joseph
This guy is talking out of both sides of his mouth. First he says that he is not a buyer or seller of Gold ( Bullion), is their a difference? Then he says if the metal goes down he’ll buy and if it goes down more he’ll buy more….? How are we to take this expert’s advice here, wow.
Highwind Cid
With the cooked numbers on inflation (based on CPI that which no longer considers food & energy) you’ll probably lose money by keeping it in the bank at “0.5%” seeing as inflation is more than that, especially when looking at the real non-cooked numbers.