Gold, which tumbled into a bear market last week, is in need of a correction, according to investor Jim Rogers, who said that he’s not buying the commodity yet as it hasn’t dropped enough.
“This may be the correction that gold needs,” said Rogers, chairman of Rogers Holdings. “If it goes down enough, I will start buying it,” Rogers told reporters in Singapore today, without identifying a level.
Gold extended losses to the lowest level in two years today after investors cut holdings in exchange-traded products as the U.S. recovers. Rogers, who foresaw the start of a commodity rally in 1999, has previously backed bullion to rally as central banks boosted their balance sheets to stimulate growth.
Bullion for immediate delivery fell as much as 3.9 percent to $1,425.75 an ounce and was at $1,436.10 at 3:55 p.m. in Singapore. Prices tumbled 5 percent on April 12, taking losses to more than 20 percent since the record close in September 2011 and meeting the common definition of a bear market.
Rogers said in April 2006 that a boom in energy and raw- material prices would help drive gold to a then-record $1,000, without giving a timeframe for that forecast. In July 2007, Rogers said that he wasn’t selling his gold position even though there were too many speculators backing further gains.
In October 2009, Rogers said that gold may top $2,000 in the next decade, citing the printing of money. In August 2011, Rogers said while he wouldn’t buy more gold “right now,” the metal was still poised to rally to $2,000 “over the years.”