INTERNATIONAL. Legendary global investor and chairman of Singapore- based Rogers Holdings, Jim Rogers said he is concerned some institutional gold reserves may be sold, affecting prices in the short term.
In an interview with Bloomberg radio, Rogers said: “I own some gold, but I am not buying at the moment because the IMF, which is one of the largest owners of gold in the world, is desperate to sell its gold.”
“I’m not selling my gold,” Rogers said.
The IMF “is trying to get permission from everybody,” Rogers added.
“If and when they sell their gold, they may set a bottom. Who knows? It may go down to US$700. They got a lot of gold to sell. If it does, I hope I’m brave enough and smart enough to buy more.”
In an earlier interview Rogers said whether the IMF sells gold or not, the world is expecting them to sell it.
G20 leaders agreed earlier this month that the International Monetary Fund (IMF) should sell gold from its reserve to help stimulate the world economy.
"Additional resources from agreed sales of IMF gold will be used, together with the surplus income, to provide US$6 billion additional concessional and flexible finance for the poorest countries over the next two to three years," a G20 statement said.
The IMF’s board approved a proposal in April 2008 to sell 403.3 metric tons of bullion as part of a plan to close the Washington-based lender’s annual deficit.
The IMF is the third-largest holder of gold reserves after the US and Germany, with 3,217 tons in deposits, according to the World Gold Council (WGC)
Rogers has spent a career being one step ahead of mainstream investment thinking. Amongst his many accomplishments, Rogers was co-founder with George Soros of Quantum Fund. During his ten years with the fund, the portfolio gained more than 4,000%, while the S&P rose less than 50%.
Rogers retired from Quantum in 1980 and became a guest professor of finance at Columbia University Graduate School of Business and in 1989 and 1990, the moderator of The Dreyfus Roundtable and The Profit Motive with Jim Rogers. In 2002, Rogers became a regular guest on Fox News' Cavuto on Business. In 2004, Rogers wrote Hot Commodities.
In 1998, he founded the Rogers International Commodity Index and in 2007, the index and its three sub-indices were linked to exchange-traded notes under the banner ELEMENTS. The notes track the total return of the indices as an accessible way to invest in the index. In 2008, Rogers co-founded the Rogers-Van Eck Hard Assets Producers Index, an equity index focusing on pure play commodity producers.