Tags: Rogers | gold | europe | india

Jim Rogers: Gold May Plunge 40% to 50% on Fears of Europe, India

Wednesday, 16 May 2012 07:07 AM

By Dan Weil

Investment icon Jim Rogers thinks gold’s correction has a long way to go – perhaps as far as 40 percent to 50 percent from its peak, thanks to bearish trends in India and Europe.

That could send the metal as low as $957 an ounce from around $1,540 recently.

In India, "there's some movement to really curtail the purchase of gold,” Rogers tells Business Insider. “Some people in India say we should stop importing gold period, which would be draconian.”

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

India accounts for 27 percent of global demand for gold jewelry and investment, according to the World Gold Council.

Boycotts, new taxes, and a drop in India's rupee have boosted gold prices there, stifling demand, The Wall Street Journal reports.

"There's an element in India in the last several months which is very strongly saying we've got all this money tied up in gold which is not good for the economy,” Rogers says.

To India’s west, “There are Europeans who are talking about the need to sell their gold or at least to start offering gold backed-convertible bonds,” Rogers says.

To be sure, given that gold has seen only one significant pullback in 11 years, a correction would be healthy, he says.

Many think Rogers will get his wish. "The weakness of the rupee . . . is likely to act as a drag on demand in the world's biggest market," Jeffrey Rhodes, head of precious metals at INTL Commodities DMCC, tells The Journal.

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

© 2015 Moneynews. All rights reserved.

Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.

You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved