News - Economics / markets
Categories: Economics / Markets
Investors should ready themselves for a stronger gold price correction, said investment veteran Jim Rogers.
The famous investor also said the US does not deserve its triple A status as Fitch downgrades its outlook for the world's largest economy.
Gold hit record highs of nearly $1,900 per ounce this year, as investors flocked to the safe haven over mounting concerns about the eurozone sovereign debt crisis and fears central banks would print more money.
However, prices have fallen back over recent months, and the price today stands at $1,714 per ounce.
"I own gold and I am not selling my gold," Rogers told Investment Week.
"I have no idea how strong the correction will be. It is very unusual for any asset to go up for 11 years in a row with no correction. It has been correcting for the past three months so it is overdue for a stronger correction, but I have no idea how much by," he added.
"The price I buy will depend on the circumstances, if it is going down because the world is going bankrupt then it would need to be priced at $900 for me to buy it. If there is an artificial occurence then maybe between $1,200 and $1,400, it depends what is going on in the world."
Rogers told CNBC today that if the gold price retreated to $1,200 he would get "extremely excited".
"I would probably get more interested at $1,600. At $1,710 or whatever it is today I am not buying gold, I am just watching. And likewise for silver," he said.
He also said the US dollar was set to strengthen because there has been too much pessimism on the currency.
"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," he told CNBC.
Rogers also voiced his opinion on Fitch Ratings' downgrade of its outlook for the US today to negative.
"Where has Fitch Ratings been for the past six years?" he said. "There is no reason for the US and France to be rated AAA."
Rogers is extremely bearish on the outcome of the eurozone sovereign debt crisis and on global growth in general. He reiterated his view the current crisis will be much worse than 2008.
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