In an interview with India’s television program, ET Now, Jim Rogers said he wants more silver, but won’t consider another purchase until the silver price “calms down.”
“I’d rather see silver go down, yes, for a while,” said Rogers. “And I don’t know how far down, again, depending on what causes it to go down. Then, I hope I’m smart enough to step in and buy some more.”
As the co-founder of the famed Quantum Fund, the 68-year-old Roger has witnessed various commodities get overstretched in prices throughout the years, so he remains cautious after a 149% rise for a Troy ounce of silver to as high as $49.79 on Apr. 25, from a closing price on Sept. 14 of $19.99.
But, according to Rogers, the price of silver has not gone “parabolic,” yet, but he’s worried that the silver price may continue its breathtaking climb, turning him into a seller of the monetary metal.
“Well, I hope it stops going up so fast. I own silver,” he said. “But if it keeps going up it will turn into a problem. If it goes parabolic, I certainly hope silver calms down and goes down for a while. I say that as somebody who owns it.”
Rogers has repeatedly stated he’s heavily invested in commodities—especially, now, holding those commodities which have not reached nominal all-time highs, as is the case for silver—for the duration of the bull market—a duration that he has previously suggested could run another decade, maybe longer.
“If it [silver] goes down, I hope I’ll buy more, and ultimately it will go much, much higher,” he said. “But if it goes up too much too fast then I’ll have to sell.”
When asked about a short-term outlook for the commodities rally—as investors weigh the prospects of a U.S. Federal Reserve jumping on the interest-rate-hiking bandwagon—Rogers facetiously responded by suggesting that investors should take advice from proclaimed market timers on television programs.
However, on a longer-term investment horizon, Rogers expects he’ll make money in all commodities, including silver, in one way, or another. If the world’s central banks are successful restarting an overall sluggish global economy, demand for commodities is forecast to continue outstripping supply. If the world’s largest and second-largest consumer-driven economies, the Eurozone and United States, continue to struggle, then the prospects for an acceleration in the rate of currency devaluations of the euro and dollar will re-emerge, according to Rogers.
“If the world economy gets better, I’m going to make money in commodities because shortages are developing,” he said. “If the world economy does not get better, I’m going to make money in commodities because they’re going to print a lot of money.”
When asked to comment about what would make him a seller of silver, Rogers doesn’t take cues from a chart. The time to sell silver depends upon a context of fundamentals by which the price is driven, he said.
“If silver went to $150 this year, I’d have to think about selling because then obviously it would be getting parabolic and it would be very, very dangerous,” said Rogers. But, “If suddenly WWIII breaks out, I wouldn’t sell silver at $200 this year. It depends on what’s happening and what causes it.”
For the past couple of years, Rogers has underscored silver as a commodity whose time has yet to come because of its relatively low price compared with the metal’s all-time high price of $50.35 set in the first quarter of 1980. If, or when, the price of silver eclipses its 31-year all-time high, the only commodity left behind the all-time record price parade would be natural gas.