According to Jim Rogers, chairman of Rogers Holdings, investors should be sinking their money into silver during this turbulent economy. Mr. Rogers recently told attendees at a Kuala Lumpur conference, “You should own commodities because that’s your only refuge.” He was one of the experts who successfully predicted the beginning of the world commodities rally.
Though commodities recently saw the worst quarter in over one year, gold has gained 8.3 percent so far this year. This precious metal led the pack in its class and Mr. Rogers believes that purchasing other precious metals such as palladium, platinum, and silver is a good move right now. He stated that commodities are a wise purchase because the world is already seeing the development of supply shortages.
Mr. Rogers predicts that the price of gold will reach $2,000 per ounce at some point in the future. Gold is trading at historical highs, but silver, which is trading around 60 to 70 percent below its high point, represents a better investment. The price of silver peaked at $50.35 on the New York Stock Exchange in 1980. Gold peaked on June 21 of this year, trading at a price of $1,265.30.
Despite gold breaking price records, Mr. Rogers is fonder of silver as an investment at this point. “Gold has been extremely strong of late, but I’m not rushing out to buy gold. I don’t like to buy things that have been going straight up,” stated Mr. Rogers. The prices of both silver and gold for immediate delivery fell slightly on Wednesday.
There is concern that slower growth in major economies such as the U.S. and China will decrease demand for commodities. These investments represent a safe haven in troubled economic times such as these. Investors should consider purchasing silver while the supply is still abundant.
Source: The Daily Crux. Jim Rogers: Silver is one of the few refuges left
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