Silver undervalued; invest in silver: Jim Rogers

Published on: February 22 2011


LONDON (Commodity Online): Precious metals are the commodities that investors are piling their money into these days, as gold and silver have been leading the commodities super cycle boom. Noted commodities expert and investing legend Jim Rogers says that investing in silver is the best opportunity these days.

According Rogers, who founded the Rogers International Commodity Index, investing in gold and silver is going to lead to long-term rewards.

Recently, Rogers sat down with Judge Andrew Napolitano on Investment Postcards, discussing how to profit when reckless monetary policies are ruling the world, especially the United States.

In the interview, Rogers says: “Federal Reserve Chairman Ben Bernanke does not understand finance, economics and currencies; all he understands is printing money and now that we have given him the printing presses, he has run those printing presses as fast as he can.”

Writing in Seeking Alpha, precious metals experts on ETF trends Tom Lydon has the following to say on Rogers:

Are you an exchange traded fund (ETF) investor worried about how our country’s loose monetary policy could affect the economy? Then you may want to listen to the advice of investment guru Jim Rogers.

Rogers says playing this is simple: find things that will protect your assets by investing in things that will hold value in inflationary environments. He likes metals, particularly silver.

iShares Silver Trust (SLV) and ETFS Physical Silver (SIVR) are the two ways to get your physical silver exposure. Rogers notes that silver is 40% below its all-time high, and going forward, silver is relatively cheap and undervalued.

He also espouses gold and silver futures, which can be owned via PowerShares DB Gold (DGL) and PowerShares DB Silver (DBS).

Rogers cautions investors to be careful when trading in the futures market – and we agree. Do some due diligence before jumping into ETFs, even if you’re acting on an expert’s advice, because ETFs are not one-size-fits-all.

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