One reason I’m not buying gold at the moment or silver or gold, specifically, is that gold has not had a 50% correction in many years. Now, you know, Bob, as well as I do that most things correct 50% every few years. It’s just the way markets work. It’s normal. They may correct 50% – within the context of a bull market even.
Gold has not done that for several years, which is why I’m waiting. I don’t know that it’s going to correct 50%. But if it does, I’ll certainly be buying a lot more. But that’s a very good point. Gold back in the ’70s went up 100% in a year or two, and then it turned around and went down 50%. It scared the socks off a lot of people before it turned around and went up 850%.
So, in my view, the same sort of thing is happening with gold now. A difference is we have a lot more bulls on gold now than we did in the ’70s. In the ’70s, gold hadn’t traded in most markets, or certainly not in the U.S. in the big Western market for decades. So you didn’t have many people who even knew gold could trade.
Now, you have a lot of people who think that gold is holy, who are very faithful to gold. In my view, we gotta shake out a lot more of those people before gold can really have its ultimate bull market top. But gold will end in a bubble someday, in my view. But we cannot really hit that solid bottom until we shake out some of the faithful.
- Jim Rogers via Investing.com