In an interview with Kitco News, Jim Rogers spoke about the situation in the financial markets and around gold. He lives in Singapore and believes that a high level of panic has formed around the coronavirus. In the city you can see empty shops, restaurants, airplanes. People try to avoid personal meetings. The tourism business was particularly affected by the current situation.
Many people in both Asia and the West are in a state of panic, although there are very few really infected people. According to Chinese authorities, the peak of the spread of the virus has already been passed, but the negative impact on the economy is still there. Therefore, in many countries around the world this year, a recession may ensue. For more than 10 years, the US has not experienced a recession, which has become the longest period. Usually it happens there more often. However, the coronavirus epidemic contributed to the long-awaited consolidation in the financial markets, which, in his opinion, were resold by 20%.
According to Rogers, the financial authorities of some countries make hasty decisions against the background of the spread of the virus in different countries. They begin to lower interest rates, print even more money and sell part of their gold reserves. All this can lead to the last big financial “bubble”.
Jim Rogers sees the sharp decline in quotations in the precious metals market last week as an excellent chance to increase his investment in gold. He believes that in a panic, some investors will sell gold and silver to take profits. Something similar already happened in 2008, when it became known about the bankruptcy of the investment bank Lehman Brothers. Correction in the precious metals market then continued for several months before growth began again. That is why the current situation can be considered the best time to buy precious metals for the future.