“I think Gold shares are very inexpensive. So a basket of Gold shares I think next year could easily appreciate 30%.”
Saturday 21 December 2013
ROGERS: If Indians Start Selling their Gold, Then Who Knows How Low Prices Can Go? (GLD)
Jim Rogers : [1] The anomaly of the 12-year rise, for one thing. [2] India as we have discussed before. Indian politicians are blaming their problems on gold, so [they] have added special taxes, tariffs, controls, and regulations. Pakistan and Bangladesh even totally banned imports of gold at one time.
The politicians are now trying to figure out ways to force Indians to sell gold. There are staggering amounts of gold there. The politicians are now trying to hit the temples which have accumulated an unimaginable amount of gold over the centuries. I have no idea if they will succeed at either, but the effort is having an effect. If they are successful to any degree, it will have an even bigger effect. India has been the largest buyer of gold for decades. Cutting back the purchases has already had an effect. IF they can force the largest buyer to become a seller [much less a larger seller], who knows how low gold could go? [3] A lot of people leveraged themselves too which hurts on the downside. Etc., etc.
The politicians are now trying to figure out ways to force Indians to sell gold. There are staggering amounts of gold there. The politicians are now trying to hit the temples which have accumulated an unimaginable amount of gold over the centuries. I have no idea if they will succeed at either, but the effort is having an effect. If they are successful to any degree, it will have an even bigger effect. India has been the largest buyer of gold for decades. Cutting back the purchases has already had an effect. IF they can force the largest buyer to become a seller [much less a larger seller], who knows how low gold could go? [3] A lot of people leveraged themselves too which hurts on the downside. Etc., etc.
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