December 14, 2011

Jim Rogers Says Gold Due for Correction; Owns Dollar

The price of gold is due for a correction and this could be used as an entry point by investors eager to get exposure to the precious metal, while the dollar is likely to strengthen as there has been too much pessimism about it, famous investor Jim Rogers told CNBC Tuesday.

"I own gold and I'm not selling my gold," Rogers said, but pointed out that the price of the commodity has been up for 11 years in a row.

He advised that a drop in price wouldn’t be such a bad thing. "Somewhere down the line gold will have a correction. Gold will continue to do what gold does best. Just give it a chance."

If the gold price retreats towards $1,200 per ounce, Rogers said he would get "extremely excited."

"I'd probably get more interested at $1,600. At $1,710 or whatever it is today I'm not buying gold, I'm just watching. And likewise for silver" he said.

“If I had to buy one today, I would buy silver just because silver is 40 percent below its all time high, gold is 20 percent near its all time high. But I’m not buying any of the four precious metals today.”

On currencies, Rogers explained why he bought the US dollar "I own the dollar, I own some other currencies as well," he said. "A year ago everybody was pessimistic about the dollar, including me…when everybody is on the same side of the boat, you go to the other side of the boat for a while."

But Rogers warned against piling into one currency. “If you have all of your money in anything, be very careful. Some are going to totally disappear.”  Rogers said he also owns the Chinese renminbi and the Japanese yen and criticized governments for their ongoing drive to print money and inability to cut debt.

“Governments around the world continue to print money. Paper money everywhere is being debased. If the US dollar turns into confetti, there is no high for the price of gold, because the dollar will become worthless,” he warned.

Rogers is still optimistic on commodities and said it was understandable that in the wake of major financial derivatives broker MF Global’s recent bankruptcy there would be some uncertainty.

“When a huge player goes bankrupt, it has a lot of ramifications. Once this is past, I would suspect that commodities would continue to go higher and that you would continue to see more inflation. I own all commodities; I especially own food and precious metals,” he said.

What is Rogers' tip for a high performing asset class over the next three to six months?

“I am wildly bullish on Myanmar, if I could find a way to put all of my money into Myanmar, I probably would. It is at the place where China was in late 1978; they are opening up, they’ve changed. They’ve got 60 million people, they are right there between China and India," he explained.

“I cannot think of anything in the world about which I’m more bullish than Myanmar.”

Jim Rogers is an great investor, author and respected financial commentaror. He is a regular guest on different TV programs like these of Barron's, FT, Wall Street Journal, New York TImes, Fortune and CNBC. Rogers is the president of Rogers Holdings and Beeland Interests.