?I would not be buying at the moment. And I am certainly not selling. However, if something happens, such as America invading Iran or who knows what, I guess I would then jump in and buy more too.? Singapore based, commodities investment guru, co-founder of the Quantum Fund, and creator of the Rogers International Commodities Index (RICI), Jim Rogers got candid with Sarika Malhotra.
Will India ASEAN FTA impact gold hubs?
Conceivably new hubs will emerge as more become interested in gold. Singapore imposes a 7% tax on gold coins as well as all silver, platinum, and palladium in any form so it will be more difficult for them to generate broad precious metals trading. The world is moving East, so new hubs will develop away from Switzerland. The money is in Asia so someone will emerge. India has so many restrictions that it is unlikely to be an international hub. Many are afraid of Dubai. Singapore would be the logical choice, but for its taxes on precious metals.
Do you think that the withdrawal of 10% duty due to the FTA would benefit consumers in the long run?
It will benefit consumers as the price will be lower without the tax, but will probably increase ultimate demand so prices will continue rising over the decade.
What do you feel about RBI buying 200 tonnes of gold from the IMF?
Everyone should be diversifying away from paper currencies in an era when huge quantities of money are being printed all over the world. It makes India more visible and gives a bit more credence to your currency down the road perhaps.
Does it signal that the dollar is finally getting redundant?
It is another step in the process of the US$ losing its status as the world?s reserve currency.
Why is gold rising? Does it indicate that a gold bubble is building up?
More are worried about all the money being printed worldwide and the debasement of paper money. Aren?t you? Gold may be too high for the moment and need a consolidation, but it is nowhere near a bubble yet. There will be a gold bubble in the next decade or so, but not yet. However, if gold should suddenly shoot on up to $2,000-3,000 in the coming year or so, then perhaps the bubble will arrive sooner rather than later.
Till what time should retail investors hold on to gold?
I do not plan to sell mine until there is a full fledged mania/bubble, which is probably still a several years away.