March 13, 2012 – Jim Rogers, legendary trader and co-founder with George Soros of the Quantum Fund, prefers silver to gold. Often, in investment circles gold is given a preferential treatment over silver for several reasons including silver’s status as a historically industrial metal. Lately, however, several notable investors have publicly stated their belief in the performance of silver over gold based on recent activity.
Rogers, who currently resides in Singapore after selling his New York mansion in 2007, is well-known for making moves and bets against the grain of conventional investment wisdom. “If you were smart in 1800 you moved to London, if you were smart in 1900 you moved to New York, if you were smart in 2000 you moved to Asia,” he said. Rogers is a particularly prominent “gold bug,” as gold investors are known in the market, and he has also been a very vocal critic of the Federal Reserve Chairman Ben Bernanke and his administration’s policy.
So it comes as no surprise that Rogers regards only market performance, and not necessarily his own reputation, when he states his preference for silver over gold. Silver Trust ETFs are up 25.32 percent year to date, far outpacing the 20.46 percent increase in SPDR gold shares ETF over the past fifty-two weeks. Given, that gold has nominally outperformed silver at only 1.02 percent increase over a fifty-two week period, silver is possibly the most under-recognized performing asset in the market today and Rogers knows it.
Rogers is long all commodities, stating that the printing policies of Ben Bernanke ensure the performance of gold and silver well into the future. Rogers is also a well-known China bull, which should be clear from his current residence in Singapore. He has stated that he would like his daughters to speak Mandarin natively so they are competitive in a global market. China is the second-largest market for gold and silver on the planet, but looks to overtake India for the first place in the coming year.
Scarcity, Rogers has stated, will fuel a bull market in gold and silver if the economy improves. If the economy continues to stagnate as a result of Federal Reserve policy, gold and silver will gain in value. For competitive investors in a global, yet reasonable, market, silver perhaps more than gold has the greatest earning potential.
Senior Staff Writer – GoldSilver.org