Archive for the ‘Jim Rogers’ Category
However, if the theory of reversion to a previous high means anything in markets then silver has greater upside than gold. The present price of $18.50 is still way off the $50 an ounce it touched in 1980. No other commodity costs so much less than in 1980.
Goldmoney’s James Turk says he sees a real possibility of a short squeeze in silver this year or in 2011: ‘That short squeeze will propel silver to – and probably over – its January 1980 record high of $50 per ounce. That event will mark an important step in silver’s bull market. Everything that has occurred in silver over the last thirty years is simply base- building.’
Gold bug supremo Jim Sinclair has early 2011 in his diary for a 50 per cent rise in the gold price from current levels. Silver usually moves in leveraged step with gold and could easily double in price or even treble in such circumstances.
Once silver has cleared its old all-time high then the sky is the limit, according to Mr. Turk. At that point he sees the lift-off for silver prices, just as $1,000 was an important base for gold prices over the next few years.
It is important to appreciate that the silver market is much smaller and restricted than the gold market, and that therefore the potential for a massive price spike is always there. Skeptics might turn to Mr. Turk and ask why has this not happened in 30 years?
Well, to be fair silver is up from $3.50 in February 1991 to $18.50 today so that is a five-fold increase. This is the base-building for the big price surge to come, according to Mr. Turk.
Jim Rogers is another investment commentator who strongly believes in holding silver over gold because of the low price relative to the previous all-time high. But if you put all your money into silver then last year you would have seen the price fall to almost $8 before rebounding to current levels, and that is volatility indeed, so buy both.
Jim Chanos, president and founder of Kynikos Associates, has the kind of short- trading record to make disbelievers gasp. From Enron to sub-prime he has got it right. And now he is shorting China.
How can that be? Everybody knows China is the global power house of the future where nothing can go wrong. Just like Enron was going to become the world’s biggest energy trading company, or nobody could lose by buying a house!
China fans like Jim Rogers are up in arms and say Mr. Chanos has got it all wrong. But has he? His argument is not that China does not have an amazing future. It is rather that Chinese asset prices are massively over-priced due to a stimulus package equivalent to half of national GDP last year.
With the benefit of hindsight he will be seen to have been so obviously right, just as he was on sub-prime mortgages. (click here for a more detailed story)