3 Min. Gold News – Jim Rogers – Kitco News & Fox News Interviews July.2013

Economics has its own language.

For those busy keeping the world humming or new to gold and economic goings on in the world – a quick 3 minute synopsis of two recent interviews with Jim Rogers, chairman of Rogers Holdings and author of Street Smarts: Adventures on the Road and in the Markets

Jim Rogers
Fox Business News Interview – July 12, 2013
Kitco News Interview – from FreedomFest July 10 – 13, 2013

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Jim Rogers owns gold. He hasn’t sold any gold, and bought a little more recently at $1,200, where he expected it to go.

Gold is in the process of making a complicated bottom (low price in a cycle of high and low). It will continue to fluctuate, certainly with rallies, for another year or two, and then make its final bottom.

Jim thinks it will make a bottom this year, or next, or maybe 2015. He claims to be a bad market timer and hopes he is able to recognize the bottom. At that point he expects to buy a lot of gold.

Normally bottoms look somewhat the same:

people give up
there’s panic and desperation
people are throwing things out the window and never want to buy gold again

Gold has risen for twelve years in a row. That’s very strange. An anomaly. Jim expects that the bottom will be an anomaly too.

What made it go up for so many years was a twenty year bull market, along with absurd policies around the world: money printing, deficit spending, and wars.

What’s making it go down now is India. The politicians want the Indian people to stop buying gold. The French are doing things, and Germans, to try and prevent their people from buying gold.

In India’s case, they have a large trade deficit in oil and gold, so they are trying to curb gold buying. In France and Germany, they are trying to take the gold, the money, from the people for socialist policies.

It took a long time for gold to reach its recent high so it would not be strange for it to take a long time to go back down, and for its bottom to lose 50% of its high.

A bottom of $900 or $1,000 per ounce would not be strange. Things go down 50% all the time.

There are still a lot of people who have mystical faith in gold, thinking it will never go down. To set a firm bottom some of those people need to lose faith and dump their gold. Then it’s a true bottom.

Bernanke has said that he will continue to print money if things are bad. This is the first time in recorded history that all central banks, Japan, Europe, England, and the U.S. are all printing money. It is a very artificial.

The world is floating on a lake of artificial money.

As long as it’s there some people are going to have a lot of fun.

It has always ended badly when you have a lot of artificial money printed. Never a time in history when it hasn’t ended badly.

This time we have all central banks printing money so it’s going to end double badly, or quadruple badly.

Jim suspects that sometime by the end of this year or next it will start ending. Then we’ll have a bad patch. It may be a temporary bad patch because the Fed will print more.

Certainly before the next American election this is going to be a big mess.

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Another Week on Wall Street

See the bankers wave the Wall Street wands
See the conjured piles of paper green
Now they’re betting all their tricks go wrong
They’re betting the world as you know it
If they win
You lose the whole world as you know it

Ever seen a long con?
Ever seen a tampered wand?
Ever seen the betters sipping tea?
Making bets just sipping tea
Well don’t talk back
Your betters
Your bankers are having a tee, hee, hee

Heyo heyo, just another week on Wall Street
Heyo heyo just another week on Wall Street

A little grease (Greece) is floating out to sea
Little PIGS (Portugal, Italy, Greece, Spain) are bobbing up and down
So send a storm and we’ll see
when the tide goes out who’s naked on the beach

Ever seen a long con?
Ever seen a tampered wand?
Ever seen the betters sipping tea?
Making bets just sipping tea
Well don’t talk back
Your betters
Your bankers are having a tea, hee, hee

Heyo heyo, just another week on Wall Street
Heyo heyo just another week on Wall Street

Who’s that wizard hiding behind that hedge?
Who’s that wizard hiding behind that hedge (fund)?

Ever seen a long con?
Ever seen a tampered wand?
Ever seen the betters sipping tea?
Making bets just sipping tea
Well don’t talk back
Your betters
Your bankers are having a tea, hee, hee

Heyo heyo, just another week on Wall Street
Heyo heyo just another week on Wall Street