Business Insider : The price of gold is now below the cost of production for many mines. Do you think that could cause tightness in supply and push prices higher?
Jim Rogers : Of course that would happen eventually. I've
been in the investment world a long time and I know that things can stay
below the cost of production for years. It takes a long time for people
to believe they have to close their mines. It costs money to close a
mine, it costs money to re-open a mine so people are reluctant to close
mines. So you can see any commodity staying below the cost of production
for a while, especially if it's something like a mine which is
expensive to close and expensive to open.Some people are not going to be able to open mines because of what's happened. But then you're going to eventually have people close mines, and eventually, like I said it's going to work its way out
in 2014, 2015, gold will make a nice bottom and off we'll go again with the assumption of a bull market. - in Business insider
Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.
