The 70-year old retired hedge fund manager, who co-founded the Quantum Fund with George Soros, has made a series of accurate market predictions, which have increased his standing with investors.
So anyone holding gold might be worried to hear that Rogers thinks the yellow metal, which is already in a bear market, is set to fall another 25%.
However, don’t panic: Rogers isn’t selling – he thinks gold’s best days still lie ahead of it.
Rogers first came to mainstream attention when he correctly predicted the bull market for commodity prices at the start of the century. As that prediction turned to fact, it eventually became a pretty crowded trade, but Rogers marked himself out again when he turned bearish on gold around January 2012.
At the time, gold was riding high at around $1,600 an ounce, but Rogers predicted it would drop to $1,200-$1,300. That’s more or less exactly what happened.
Now Rogers thinks that gold will fall further – to $900 per ounce. As he explains in a recent Financial Times interview, his reasoning for this prediction is very simple: “Gold has gone up 12 years in a row, which is terribly unusual for any asset, so it would be an anomaly if there was not a correction.”
- Source, Money Week, Read the full article here: