Four reasons for the gold sell-off: Jim Rogers
Legendary US investor Jim Rogers has weighed in on the debate about what exactly caused the gold price fall from grace in mid-April, which is likely to end the precious metal's longest winning streak in over nine decades.
Rogers points to four key forces that helped push gold off the cliff:
1) India raised its gold import tax from 4% to 6%, which has limited the demand for gold in the world’s largest market for the metal.
2) Technical analysts and chartists have been arguing that prices would fall.
3) The collapse of the Bitcoin over the past two weeks coincides with many of the digital currency’s owners also owning gold.
4) Germany’s demand that Cyprus sell part of its holdings in gold to alleviate debt concerns.
Two glaring omissions are the ETF sell-offs, and the surge in US equities that has reduced the perceived need for safe-haven investments such as bullion.