Don't lose heart on plunging commodities: Rogers

Don't lose heart on plunging commodities: Rogers
2008-08-16 08:45:00

Commodity OnlineMUMBAI: Commodity prices are plunging every day led by the free fall of the hot commodities like crude oil and gold. But don't lose heart on commodities and panic because this is how market behaves, says investing legend Jim Rogers.
Rogers told Commodity Online: "All markets all over the world in all asset classes have corrections all the time. That is how markets work."
Rogers, the best known global guru on commodities, said the commodities market is these days hit by the prospects of growth slowdown in countries like China and and the large-scame economic pessimism in the US and Europe.
On Friday, crude oil prices plunged further to $112.39 a barrel on the New York Mercantile Exchange. In the last one month, crude oil has lost nearly $45. It had reached an all-time high of $147.27 a barrel on July 11. The dollar rose to 110.44 yen, the euro fell to $1.4670 and the pound dropped to $1.8628.
Gold for December delivery dropped $28.90 to $785.60 an ounce on Friday on the New York Mercantile Exchange. Silver for December delivery plummeted $1.33 to $12.90 an ounce on the Nymex, while September copper fell 1.25 cents to $3.2925 a pound.
Rogers said that one reason for the decline in commodities prices is the strengthening dollar index. "Naturally, dollar-based commodities like metals, gold, silver, copper and platinum and several agricultural commodities have been falling. But I would say this is how market operates. So dont lose heart on commodities," he added.

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