Jim Rogers: ‘Sell Any Sterling You Might Have. It’s Finished’
January 21st, 2009WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Sterling holders, consider reducing or eliminating your exposure to GBP denominated assets immediately.
A bit late, don’t you think, Jim???
I’m glad that some Cryptogon readers in Britain have defended themselves by turning their pounds into gold on BullionVault. Well done!
Via: Independent:
Fresh concerns about the British economy and fears for the stability of the UK’s financial system pushed sterling to new record lows against the dollar, euro and yen yesterday.
One of the world’s leading investors voiced the markets’ concerns. Jim Rogers, of the Singapore-based Rogers Holdings and co-founder of the Quantum fund with George Soros, told Bloomberg Television: “I would urge you to sell any sterling you might have. It’s finished. I hate to say it, but I would not put any money in the UK.”
Mr Rogers added that the pound will fall below its record low of $1.0520 reached in February 1985. Given near parity with the euro, it raises the intriguing possibility that the pound/dollar/euro exchange rate could yield a “triple parity”.
…
In trading, the pound crashed as much as 4 per cent to lows of around $1.386, in its biggest one-day slide against the dollar since Britain fell out of the European Exchange Rate Mechanism in 1992.
Neil MacKinnon, director and chief economist at ECU Group, said: “There’s a real danger of the decline in sterling becoming a full-blown crisis. The Government and the Bank of England have to change their tune on the pound pretty quickly.”
