Maverick investor Jim Rogers has revealed that he waiting for gold to go below US$1000 before buying more.

In response to Monday’s fall in the price of gold to US$1,088 (£697) an ounce in Asian trade, its lowest level since March 2010, Every Investor asked Rogers for his view on the precious metal.

His response was typically forthright and we have reproduced his comments in full below:

“I have explained for 5 years that I am not a buyer of gold or silver [except a few coins as gifts] since I expect a lower bottom. I own both and have not sold any, but I have hedged some.

Gold has not had a 50% correction for many years which is strange in markets. I have no idea if and when I will buy, but IF gold does have a 50% correction, it would be to US$960. There is nothing which says anything must decline 50%, but it is common. IF gold goes below US$1,000 I hope I am smart enough to buy more and close my hedges, unless something else is happening.

I have no idea what will happen: e.g. if America goes to war with Iran, I suspect I will be buying gold much higher.

There are still too many mystics in the gold market who think gold is holy so cannot decline. When/if they give up and throw their gold out the window because ‘she lied to me’, gold will make a firm bottom.

In the end gold will turn into a bubble when people lose confidence in governments and paper currency again, which will happen in the coming financial turmoil down the road.”