Jim Rogers May Buy 'A Lot' Of Gold Under $1,000

HardAssetsInvestor: If you look at the broad commodity indices, they've fallen for four-straight years. A lot of analysts are out there right now talking about how, given this poor performance, commodities are in a bear market. Do you agree with that?

Jim Rogers: I would disagree that the fundamentals are like that. If you look back at the bull market in stocks between 1982 and 2000, there were plenty of periods when stocks went down a lot and stayed down a while. You may remember in 1987, stocks went down 40 to 80 percent around the world. Many people said the bull market was over. Likewise, they said the same thing in 1989, 1990, 1994. I could go on and on.

HAI: While the dollar has been rallying, another safe haven, gold, has been going the other way. Are you buying now? If not, at what level would you be comfortable buying?

Rogers: I own gold, but I’m not buying more gold at the moment. If gold goes under $1,000, I hope I'm smart enough to step up and buy more gold—maybe even a lot of gold. Gold has not been down 50 percent at all in at least 15 years. That's very unusual because most assets have 50 percent corrections every few years; there's nothing unusual about that.

That has not happened to gold. It doesn't have to happen, but I'm just pointing out that it's been a very long and unusual market for gold. It's mainly gone up, except for the last three years.

If a major decline comes, which would be normal, and which would be a proper correction, I hope I'm smart enough to step in and buy a lot more. But I'm not buying at the moment.

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