Gold prices may plunge even further with the potential to fall as low as $960.00 an ounce. At least, that’s the gold price forecast of legendary investor Jim Rogers.
“Gold has not had a 50% correction for many years which is strange in markets.” He told Every Investor, “I have no idea if and when I will buy, but if gold does have a 50% correction; it would be to US$960.”
Historically, gold has served as a safe haven for investors. But since 2011, prices have been in steady decline, destroying billions of dollars in investor wealth.
“There are still too many mystics in the gold market who think gold is holy so cannot decline. When/if they give up and throw their gold out the window because ‘she lied to me,’ gold will make a firm bottom,” Rogers said.
“I have explained for five years that I am not a buyer of gold or silver [except a few coins as gifts] since I expect a lower bottom. I own both and have not sold any, but I have hedged some.” (Source: everyinvestor, last accessed July 21, 2015.)
However, despite his pessimistic perspective, Rogers concluded with some encouraging words for precious metal investors. In his view, reckless monetary policy could lead to a U.S. dollar collapse, which could be bullish for gold.
“In the end, gold will turn into a bubble when people lose confidence in governments and paper currency again, which will happen in the coming financial turmoil down the road.”