"Gold needed a correction. And, if it was going to happen, where should it go? $1,200 was between 35% and 40% (lower, from its high of more than $1,900 in 2011) and 35%-40% reactions are commonplace, so that was the first number. I wish I could tell you I had a formula."But I’m not sure we’ve found the final bottom yet; it would make a lot of sense for gold, having had 12 years up, to have at least a longer consolidation, a longer correction ... my view is that gold is in the process of making a complicated bottom, which could take a while.
"There were lots and lots of mystics who were convinced that gold was holy. That gold could not go down, that gold had to go up. And that’s the reason I think gold hasn’t made its final bottom yet. It’s because there are still lots and lots of people who tell me gold cannot go to $1,200 … people who think this can’t be happening or it’s being manipulated and there’s all sorts of excuses for what’s going on.
"You know, when you have true believers you usually don’t hit a true bottom until most of those people get washed out. I suspect that is still to come. I don’t think many have sold their gold yet.
"I expect gold may go down even more, to $1,000, to $900. A 50% correction would be $960 or whatever it is. Now 50% corrections are quite normal in markets. And that might go some way towards shaking out some of the faithful...."
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%.
