Business

Thursday October 8, 2009

Jim Rogers wary of buying gold at new high


But he sees further gains in the long term

SINGAPORE: Renowned investor Jim Rogers, one of the biggest bulls on this decade’s commodities rally, is not so bullish on gold a day after the precious metal set a record high, although he does see further gains in the long term.

“Gold has hit a new high and I don’t like to buy something at record prices unless there are extremely strong fundamental reasons. I am not jumping on board,” said Rogers, whose bearish views on the dollar and bullish views on commodities and China have been widely broadcast for years.

Global renowned commodity investor Jim Rogers. Also, author of "Hot Commodities: How Anyone Can Invest Profitably in the World’s Best Market”. He says ... I am not jumping on board".

“I can’t say what will happen to gold tomorrow or next month. But if you ask me whether gold will go up in the long term, maybe in the next decade, I would say yes,” he told Reuters by telephone in Singapore, where he now lives as an independent investor.

Spot gold prices surged to a record above US$1,040 an ounce on Tuesday, topping the previous March 2008 peak as investors moved to preserve the value of their dollar-denominated assets against the weakening currency and the risk of inflation.

Rogers has long been down on the dollar, which he has called ‘terribly flawed’. Dollar weakness has been one of the main drivers of the recovery of commodity prices this year, and also cited as one of the factors explaining the strength of gold.

He is also renowned as a long-time commodities bull, repeatedly predicting higher prices for raw materials and also author of a book titled Hot Commodities.

Rogers rose to fame after co-founding the now-closed Quantum Fund with George Soros nearly four decades ago. The fund returned 4,200% over the 1970s and famously bet against the pound in the 1990s. — Reuters


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