Jim Rogers sees gold moving to new highs
Ace investor forecasts crisis in next 2-3 years to support gold
Veteran investor Jim Rogers believes gold will surpass its previous alltime high and go "much, much higher" as the equities plunge into bear market and the world moves into a recession. The cofounder of Quantum Funds with George Soros and chairman of Rogers Holdings has been accumulating gold and will keep accumulating as and when opportunities emerge.
"Gold will go up very very high. When people lose confidence in governments and money, they will buy gold. Sometime in next two-three years we are going to have crisis and gold will definitely go higher. For the next two-three years are going to see a bear market in equities,"
Rogers told Financial Chronicle in a telephonic interview from Singapore. He has also predicted that he would see the "worst bear market" of his lifetime as the outbreak has saddled governments and companies with enormous debt.
"Gold will go above alltime highs during the times of turmoil. For the next two-three or five years it is going to go very high.
It might be higher than what everybody expects," he said when asked whether gold will move beyond $2,000 an ounce. Gold had touched its alltime high level of $1,920 an ounce in September 2012.
According to him, it can happen this year or next year. But the next few years will see the yellow metal shining much brighter than other asset classes. The designer of Rogers Commodity International Index has been using dips in the market to accumulate the yellow metal.
"I own gold, I buy and I have been buying gold since summer. If there are opportunities to buy gold, I will buy more," he said.
However, gold too has seen a slump along with equities as the Covid-19 spread across geographies, raising concerns about the health of global economy.
"In a bear market of stocks and other assets, gold will also go low as people have to sell everything and they sell gold too. But eventually, gold will go up much, much higher and this will happen. This time too when the markets fell, they sold their gold and silver. But they will turnaround," he asserted.
Rogers also believes the dollar too will remain firm, though gold and the greenback usually have an inverse correlation. "Sometimes gold and dollar go together, sometimes they do not. I think, going ahead, both will be strong. But I don't know which will be stronger," he said.
Rogers too has accumulated dollar and is holding on to it. "I don't think dollar will ease from these levels,” he said.