Sunday, January 9, 2011

Jim Rogers: I would own silver than gold

Jim Rogers: I would own silver than gold

LONDON (Commodity Online): Which is the best investment asset in commodities? Gold or Silver? It is an ongoing precious metals debate to which leading global commodities investors and bullion analysts are partaking these days.

Among them, the wisdom in investing in commodities comes sharp and clear from Jim Rogers, chairman of Rogers Holdings. The celebrated commodities investor and founder of the Rogers International Commodity Index says he would love to own silver than gold.

In an interview to India’s business television channel ET Now, Rogers said that by the way of the precious metals investment, “I would rather own silver than gold.”

Asked if he expects soft commodities to outperform precious metals and base metals, Rogers said this: “Well, as a generalization, yes. I would rather own agriculture and so other commodities in 2011, but silver may outperform a lot of things.”

He said that silver is a metal and it is still depressed. “Silver is still 40% below its all-time high. So silver has not been any sort of great bubble compared to perhaps some other assets we know. I, as a class between agriculture, energy and metals, would rather own agriculture and by the way of the precious metals, I would rather own silver than gold.”

Rogers, a veteran commodities investor who has penned such fascinating books like Hot Commodities and A Bull in China, disclosed that he still owns silver.

“I still own my silver. I am not sure if I would buy it today as it has gone up so much so fast, but I am not selling it and if it goes down, I will buy more silver. Likewise for the rice, if rice goes down, I will buy more rice. So both the silver and rice have a great future for the next few years,” Rogers added.

On US bonds and China real estate, Rogers had the following words of wisdom:

“I am selling short United States government bonds, the long bonds. Everybody seems to be optimistic. Even I felt unsure when Mr. Bernanke said he was going to buy them. I thought I was being foolish, but I am making a little bit of money right now. But as I look around the world, that is one of the few bubbles or potential bubbles that I see."

" Well, one should go the other way where there is a market, there may be a bubble in Chinese urban real estate. It is not really many ways for me to play that but the only bubble that I see in public markets is the long-term government bond market in the United States.”

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