Don't worry about silver until it hits at least $100, says Jim Rogers
Commodities bull Jim Rogers has admitted he is worried that silver might go 'parabolic' and crash later this year.
Commodities bull Jim Rogers has admitted he is worried that silver might go "parabolic" and crash later this year. The 69-year-old investor remains confident that gold will continue to rise but says that if silver continues to rise at its recent rate, "you've got a bubble".
Rogers is well known for attracting press attention, famously moving his family to Singapore because Asia is "how Europe used to be". However, investors will particularly interested in his view on silver as he has made several well-timed calls on commodities in the past.
Rogers made his name by co-founding the Quantum Fund with George Soros in the '70s but it was the launch of his first resource fund in 1998 which benefitted from rising commodity prices in the following decade that established him as a 'commodity guru'.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Speaking to a US radio station, Rogers acknowledged that "people are starting to notice gold" but remains confident that gold has plenty to rise. "Eventually everybody's going to be owning gold, and then we'll have to sell our gold. But that's a long way from now."
He denied that recent purchases by institutional investors, such as Texas University, marked the top of the market. "Gold's been going up for ten years in a row. I'd hardly call this a tipping point."
Rogers, however, was a little more cautious on silver. He noted that it has been "skyrocketing" recently and warned that if it hit $100 or more (it's currently trading at around $45 an ounce) this year, he "would probably start to think about selling".
On the one hand, "maybe the US dollar is going to become confetti in 2011, and if that's the case and silver goes to $150, then obviously I wouldn't sell my silver." But if silver "goes parabolic" this year without an accompanying currency collapse, "I would be very worried."
Recalling how he had begun to short gold when it "went parabolic in 1980" he reminded listeners that "there's never one [a bubble] in history that hasn't popped".
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published