Buy silver if price drops: Jim Rogers
LONDON (Commodity Online): Global commodities guru Jim Rogers says that Silver remains the hottest commodity these days. Despite the current downtrend in commodities in the recent weeks, the bull market in the sector is still intact, Rogers said.
In an interview to IndexUniverse.com, Rogers who is regarded as the most authentic voice on commodities investing in the world said that the downtrend in commodities is nothing unusual.
“This is the way the world works. If you look at oil, for instance, it has gone down over 50% three or four different times since 1998. That’s what markets do, and they will continue to do that,” Rogers pointed out.
Rogers is chairman of Rogers Holdings and Beeland Interests, Inc. Rogers, the co-founder of the Quantum Fund with George Soros and creator of the Rogers International Commodities Index (RICI), said that he continues to be long on commodities.
Rogers said he regards Silver as the hottest commodity and like the white metal for the rest of the decade and is ready to buy Silver if the price comes down. He had said in May that the surge in Silver price to nearly $50 in April didn’t look healthy and hoped for a pullback to kill the froth.
“Well, I’m long silver, and if it goes down more, I hope I’m smart enough to buy more,” he said. “I didn’t particularly like seeing it spike, because anything that turns into a parabolic move has to be sold. And I don’t want to sell my silver. I want to own it 10 years from now. Fortunately, that spike did break, and I find that encouraging and bullish.”
Rogers, who is the author of the best selling books like Hot Commodities and A Bull in China, said that commodities prices will continue to rise in the years to come as populations are growing in size and prosperity in Asia, bringing with that growth an upgraded and voluminous diet—the demand side of the price equation.
On the supply side, Rogers noted the aging of farming personnel will pose challenges to the restocking of qualified talent.
“We know that there are huge shortages of agriculture developing. I don’t know if you knew this, but the average age of farmers in America is 58 years old. In 10 years, they’re going to be 68, if they’re still alive. Throughout the world, we have serious, maybe even catastrophic developments in agriculture, which is going to hurt us all over the next couple of decades,” he said.
On the Crude Oil market, Jim Rogers said: “I do not see any major new sources of supply of oil. We know that the known reserves of oil continue to decline worldwide.”
NYMEX Crude Oil (Light)
Story by the Excellent CommodityOnline.com