Use access key #2 to skip to page content.

XMFSinchiruna (27.59)

Jim Rogers: Silver will Outperform Gold!

Recs

31

November 07, 2008 – Comments (7)

Yet another thing Jim Rogers and I agreee on.  :)

http://www.bi-me.com/main.php?id=26866&t=1&c=35&cg=4&mset=1011

INTERNATIONAL. Silver, down 35% this year, will outperform gold as investors turn to the metal as a hedge against inflation, investor Jim Rogers said.

“Silver will do better than gold,” Rogers, chairman of Singapore-based Rogers Holdings, said on Monday in an interview in New York. “It’s been beaten down horribly. If you put a gun to my head and said you have to buy one, I would buy silver rather than gold.”

Gold may drop as central banks and the International Monetary Fund (IMF) sell the metal to raise cash, said Rogers, who correctly predicted in April 2006 that gold would reach US$1,000 an ounce. The IMF in May ratified a plan that included proposals to sell 403.3 metric tons of gold to reduce a budget deficit.

“The IMF has gigantic amounts of gold,” said Rogers, a cofounder with George Soros of the Quantum Hedge Fund. “Maybe gold is going to go down for a while. If gold does go down, I’m going to buy more.”

The IMF’s gold-sale plan needs legislative approval from member countries including the US before it can be carried out. The lender is the third-largest holder of gold reserves, with a total of 3,217 metric tons valued at about US$90 billion. The US has the most, followed by Germany.

Silver futures for December delivery rose 2 cents to US$9.75 an ounce on the Comex division of the New York Mercantile Exchange. From July 31 through October 31, the metal dropped 45%, more than twice as much as gold, which fell 22%.

The recent decline in raw-material prices is a short-term correction and doesn’t signal the end of the commodity bull market, Rogers said. The Reuters/Jefferies CRB index has plunged 44 percent from a record in July, including a 22% drop last month.

The Rogers International Commodity Index Total Return has plummeted 47% from a record in July, including a 25% slide last month. The index fell as much as 2% on Monday.

Supply constraints and inflationary pressures will boost agricultural, energy and metal prices, he said.

“All the commodities are going to go higher,” Rogers said. “Everything’s been killed and they’re due for a rally.”

 

7 Comments – Post Your Own

#1) On November 07, 2008 at 6:54 PM, biotechmgr (36.35) wrote:

I too agree silver will outperform gold. Selloff in silver is overdone vs. gold and a massive int. term buying opportunity. Gold should still come down to 600-650 range.

Report this comment
#2) On November 07, 2008 at 6:54 PM, biotechmgr (36.35) wrote:

I too agree silver will outperform gold. Selloff in silver is overdone vs. gold and a massive int. term buying opportunity. Gold should still come down to 600-650 range.

Report this comment
#3) On November 07, 2008 at 7:51 PM, XMFSinchiruna (27.59) wrote:

biotechmgr

If you're waiting for $600 gold to climb onboard, I;m afraid you'll be left at the station.  :)

Report this comment
#4) On November 07, 2008 at 8:48 PM, DemonDoug (85.49) wrote:

SLW and LMC for the win.

Rogers is also hugely bullish on ag, and I agree.  TNH has zero debt; since i picked it in CAPS a few weeks ago, it's not only beating the market but it's up by a whopping 50%.  If it drops back to 70, it would be a great buy there.  POT, TRA, SQM, and MOS are also poised to shoot up if/when the economy turns around and even if it doesn't their businesses will stay intact.

Deej did a post on agriculture about how short term the prices of everything are falling, which is why he ended his pick on mosaic.  Just like oil, I feel that will be a buying opportunity.

Report this comment
#5) On November 07, 2008 at 8:49 PM, DemonDoug (85.49) wrote:

sinchi do you still like SLW Silver Wheaton as the best silver miner out there?  That would be my pick...

Report this comment
#6) On November 07, 2008 at 9:03 PM, XMFSinchiruna (27.59) wrote:

DemonDoug

Yuuuuuuuup! Without a doubt and without peer.  :)

Report this comment
#7) On November 07, 2008 at 9:04 PM, XMFSinchiruna (27.59) wrote:

My latest on SLW

 

Report this comment

Featured Broker Partners


Advertisement