In an exclusive interaction with NDTV's Namrata Brar, Jim Rogers, chairman of Rogers Holdings said that he is looking at every opportunity to buy gold and believes that commodities is a 'no fail' trade.
His outlook on India is bearish. “India is the most wonderful country in the world. Yes, a lot of problems are caused by the Eurozone and America. But a lot other problems in India are self-inflicted,” he added.
Below is complete interview. Watch the accompanying video here.
- At what level would you buy gold? Has it become too attractive to just not miss?
- If gold continues to go as it goes, I would buy a lot of it. If it goes to 1100 per ounce level, I will buy a lot of it.
- As commodities are seeing a bull run, would other assets like oil go up?
- I'm more optimistic about agricultural products but no other commodities, which need a correction right now. I hope I was smart enough to buy more. If the world economy gets better, I’m going to make money in commodities. Even if the world economy does not get better, I want to own commodities because they print a lot of money.
- Since the problem spot is India, it is going to affect the gold prices. Also, the S&P has issued a warning that India could be the first BRIC angel to fall. Do you think that India is going to get its wings cut off?
- There are problems in India. It is going to get worse.
- What according to you is the biggest problem? Is it the politics, policy paralysis, lack of infrastructure?
- Infrastructure; it is also the government, which can't get it right. They are always making things worst. You have a balance of trade problem, you have an inflation problem. India is a single best country in the world but it is not a place for foreigners to invest, at least not for me.
- Is Eurozone to blame for India's mess?
- India is the most wonderful country in the world. Yes, a lot of problems are caused by the Eurozone and America. But a lot other problems in India are self-inflicted. Now, Europe and America are gigantic economies. They combine together a 30-40 times of the Indian economy. So, when they have problems, it is going to affect everybody including India.
- How will you solve the Eurozone's problems?
- I will let to go bankrupt and not allow the banks to bailout. I will stop bailing out the bond holders. German tax payers have made the mistake. Why should they be bailing out banks, while Greece is sitting on the beach drinking wine? So, I would let them go bankrupt; it will cause pain but a lot of other European countries had horrible pains few years ago but now they are booming. You cannot deny reality. You should take the pain and get over with it.