Jim Rogers - on the hit to Gold, Currency wars, Global de-risking & Recession

[edwardtang1977]

the US just have to turn everything into a war, don't they?

[MrNChoudhury]

@edwardtang1977

It is slightly ironic that for all its benefits the free market has now turned into a global weapon of warfare. On a scale nobody ever dreamed of.

It is exactly a repeat of how the Great Depression affected countries in the 1930s.

[jezza1789]

@MrNChoudhury No is way worse

[EMPIRE0FLIES]

Metals were hit by margin hikes to stop the rush toward gold and into the dollar.

[MrNChoudhury]

@EMPIRE0FLIES

Yes that's a major reason for the move in gold. I think there are 3 things going on at the same time:

1 - Liquidity crunch resulting from margin calls causes immediate demand for cash to cover positions. People are playing with capital that isn't theirs. This is as much a fault of investors as it is the authorities.

2 - Macro effects across inflation, currencies and the price of gold. This is the realm of central banks.

3 - Fear. People are afraid.