Commodity Online
"India's got a big balance of trade deficit ? some Indian politicians are starting to blame it on gold," said Jim Rogers in a programme on CNBC.
"[If they] figure out a way to cut or crimp imports of gold ? if something like that happens, that will be a big shock to all those bulls on gold and who knows how low it can go." the legendary investor added.
India has recently aired concerns regarding its trade deficit getting aggravated as one of the biggest importers of crude oil is forced to balance the ship even as gold imports are also jostling for space. India, on close heels to China, is a consumer of the bullion in gigantic scales. Nonetheless, the nation imports more than a lion's share of its gold consumption.?
The country, in a bid to curb imports of gold had recently doubled the duty on gold.
"I'm very cautious"
"Just be careful, there're too many bulls, including me, but I'm very cautious," Rogers told CNBC on gold's Tuesday correction.
Gold fell to a 3.5 month low on Tuesday as fiscal cliff pessimissm set in.?
"Gold is having a correction? it's been correcting for 15-16 months now? which is normal in my view, and it's possible that [the] correction is going to continue for a while longer." Jim Rogers added.?
Rogers as of now is not buying any gold and has even hedged some of his positions.
"If gold goes down ? I hope I'm smart enough to buy more. If it goes down a lot, I hope I'm smart enough to buy a lot more," he added.
The China bull still stands by his positive long term outlook for gold.
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