(OroyFinanzas.com) – Felix Moreno interviewed one of the most important investors of the moment, Jim Rogers. Recently, Rogers has published a new book, Street Smarts in which he collects his experiences from his origins in Alabama to Singapore. The main object of interest in an interview or in a statement by Rogers is to hear his recommendations and analysis of the gold quotation and, in general, of the rest of precious metals. In recent months it has been one of the gold bugs – analysts who devote their time to constantly recommend the gold market – which has asked for a “healthy” correction of the price of gold and, in view of the results, has achieved it.
In this sense, Rogers believes that the price of gold will continue in the coming months, following twelve years of continuous price growth: “The abnormality was that gold would rise for 12 years in vertical.” This is not normal, it is not a typical action. “It’s abnormal, which worries me, and I should worry about the other gold bugs.”
This correction in the price of gold has taken by surprise many investors, faithful believers imbued in the mystique of gold, which believed that the price of gold could not fall 30%. After this, the agents are taking more cautiously the movements of the market. The gold is once again a commodity, ceasing to have the leading role it has had in recent years. However, Rogers himself recognizes that there is a very large difference with respect to other raw materials such as oil or natural gas.
Rogers is also known for his analyses of developing countries and, most notably, woth the Asian giant. China is the country that has a brighter and more promising future of the whole of the BRICs. However, the main problem of these emerging countries is institutional chaos and respect for property rights. This problem does not exist in Singapore, country of residence of Jim Rogers. Singapore is a country in which, despite extreme climatic conditions, an impossible terrain and a quota of minimum arable land; Legal certainty and the clear definition of property rights have been responsible for the prosperity of this country.
The example of economic freedom given by Singapore, has nothing to do with what happens, for example in the United States. The American nation, in the judgment of Rogers, is the paradise of debt. He underscores the weak will of the authorities to stop the debt growth and start adjusting the public budget. As long as QEand extraordinary measures of monetary expansion exist, the debt will not stop growing and it also becomes a trip to nowhere since there is no Plan B not to plunge the economy into hyperinflation.
“Mr. Bernanke’s escape plan is to quit your job.” He doesn’t want to participate in the “hangover.” “He does not want to partake of the consequences he is causing.” With these words, Rogers makes it clear that there is no plan to exit the QE and, if there is, he doesn’t know about it. The currency war will continue with “more wood” from the Fed, the Bank of England or the Bank of Japan.
Source: Zero Hedge