We had an anomaly in the gold market. Gold went up 12 years in a row, which is very strange and unusual for any market. When the correction came, it too was an anomaly. At the same time, the Indians – who were the largest buyers of gold in the world – Indian politicians started blaming their problems on gold. So they took many measures to cut back their demand for gold, successfully.
Gold is still going down. India was a much bigger buyer than anyone else – so obviously when you take out demand from the largest buyer of anything, it causes a correction. That’s what been happening. Nothing unusual about it.
At the same time, many speculators and investors were cutting back after the 12-year bull market. That plus the Indians overwhelmed Chinese demand.
I still am not buying gold in any big way yet, because there are still too many mystics, too many people who think that gold is holy. I don’t see how the markets can make a bottom until a lot of those mystics get shaken out of the market. Once they throw in the towel, then gold will make a significant bottom, and I hope I’ll be buying a lot more at that time.
via http://www.investing.com/news/commodities-news/investor-jim-rogers-talks-commodities-(q-a)-271156
