Jim Rogers on Silver vs Gold Debate
Legendary investor Jim Rogers, whose conversion to commodities as an investment class back in 1999 preceded the end of the 20-year bear market by a couple of months, is backing silver over gold as an asset class to beat inflation
He told journalists that if pushed to choose between the two precious metals he would choose silver over gold. Rogers has moved to Singapore and he has sold all his dollar holdings because he believes the resumption of the US dollar’s long term devaluation is imminent. He is even shorting US treasury bonds.
Jim Rogers admits that silver has been particularly battered down, and perhaps that is why he likes this precious metal. Silver is leveraged to the gold price, so when gold goes down, silver goes down further. But equally when gold prices rise, silver will rise even higher.
And why is silver leveraged against the gold price? The answer is simple. Both are precious metals but the available supply of silver is less than one-tenth the size of the gold market, and the dynamics of supply and demand in such a situation are obvious.
Really? I didn't know the supply of silver was so weak. Thanks!
ReplyDeleteI bougth shares in Barric Gold at 37,75 USD, which gives me a loss just now(33,45 USD) on 16% in euro. I believe I should sell and buy silver, For 20.000 USD how should I invest in the silver ?
ReplyDeleteJust buy SLV it's the easiest and cleanest way.
ReplyDeleteI"m not convinced about the advantage of silver over gold although I've heard the arguments.
ReplyDelete