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Gold has actually had a nice runup for over a years now, but it’s taken a beating this year.
The yellow metal is currently trading at three-year lows.
We connected to products expert Jim Rogers for his take on exactly what’ll occur next in the gold markets.
Business Insider: Just how much lower do you expect gold costs to go?
Jim Rogers: I’m pointless as a market timer/trader. Having stated that, a 50 % correction is regular in markets so why not in gold? The 12-year rise was an anomaly in markets so the correction might continue to be an anomaly. There will be rallies after big drops, however I expect another opportunity to buy gold.
BI: What do you think lags the sell-off?
JR:  The anomaly of the 12-year increase, for one thing.  India as we’ve discussed in the past. Indian political leaders are blaming their issues on gold, so [they] have added special taxes, tariffs, controls, and regulations. Pakistan and Bangladesh even totally prohibited imports of gold at one time.
The political leaders are now trying to identify methods to compel Indians to offer gold. There are shocking amounts of gold there. The politicians are now trying to hit the temples which have actually built up an inconceivable quantity of gold over the centuries. I’ve no idea if they’ll prosper at either, however the effort is having a result. If they succeed to any degree, it’ll have an even bigger result. India has been the biggest purchaser of gold for years. Cutting back the purchases has already had an effect. IF they can force the biggest purchaser to become a seller [much less a bigger seller], who understands how low gold could go?  A lot of people leveraged themselves too which harms on the drawback. AND SO ON, and so on
BI. Are you buying gold? If not when’d you purchase gold?
JR: No. I hedged some again a little while earlier. … I want I understood. Read Business Expert to obtain responses to questions like that.
BI: Do you think the faithful are lastly tossing the towel in?
JR: No. The majority of them are still rejecting truth saying it can not take place, etc. They’re likewise blaming it on manipulation still. They didn’t blame anything on adjustment on the way up, but are now finding all types of reasons. [I likewise discover it intriguing that I’ve actually not seen a single comment from them or any individual else about changes in India – the largest purchaser in the world. The whole thing is ‘adjustment’.]
SEE ALSO: 10 Countries Sitting On Massive Quantities Of Gold
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