This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Jim Rogers: Abolish the Fed, Buy Commodities, Short Stocks

What would your criteria be for buying gold somewhere near a bottom?

Rogers: Well if gold were $1,200, I would rush out and put a lot of money into gold. And that's not such a strange statement, by the way. Many assets go down 40% or 50% over a year or two period. That's not unusual at all. In the 70's gold went up 600%, went down 50% -- scared everybody out. After everybody got scared and sold, it went up 850%. That's not unusual in markets. So if gold went down a lot, I'd buy a lot more. If it went down, I don't know, $1,500, I'd certainly start buying. If it went to $1,400, I'd buy more and if I was still solvent at $1,200 or $1,100, I would buy a lot more.

Speaking of $1,200, it would break a long term trend line, a lot of traders would be scared of it because the chart would look broken. What would $1,200 gold mean?

Rogers: Well, see you know all of these things about charts. I don't know all this stuff. I don't pay attention to them. But it certainly scared them in the 1970's when gold went down 50%, I guess it broke all the charts and scared everybody and they sold out.

All it would mean is that some speculators were dumping their gold or losing their faith. Right now we've got a lot of correction in the commodities markets because MF Global went bankrupt and there's a lot of forced, artificial liquidation but liquidation is liquidation whether it's artificial or not. And that's what happening. If gold went to $1200, it might just mean that -- that there was forced selling.

A lot of people say, gold's not at $2,000 and it should be because Europe is falling off a cliff.

Rogers: For whatever reason, gold is not at $2,000 with Europe falling off a cliff like you said. But as I said, I own the euro. I expect them to paper it over for at least for a while. Maybe that's why gold is not at $2000.

Let's say on that logic -- let's say that Merkel does something that seems reasonable and logical and everybody says the worst is over. Stocks around the world will go up including in the U.S. I'll lose money on my shorts. Gold will possibly go down too. Then combined with forced liquidation and if you have somebody else who is over extended and they would have to dump their gold. You can come up with all kinds of scenarios. You are a reporter, that's what you are paid to do. You come up with the scenarios; I am just a simple investor.

What's your gold outlook for 2012. What do you think is going to happen in the market?

Rogers: I don't have one. You should watch I don't have one. I am a terrible trader in the short term and I am a horrible market timer.

If you had to pick one commodity, you had to own right now, if you could only pick one, what would it be?

Rogers: Well, it would be agriculture -- something in agriculture.


Going back to the U.S., what should the Federal Reserve do at their upcoming meeting, aside from quantitative easing round three, or QE3. We've seen more Fed presidents come out and call for more monetary easing. What should they really do?

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CNY $42.79 0.00%
FXE $109.94 0.00%
JYN $48.15 0.00%
UUP $25.24 0.00%
UDN $22.35 0.00%


DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs