Jim Rogers chooses silver over gold to beat The inflation

Jim Rogers on Silver vs Gold Debate

Legendary investor Jim Rogers, whose conversion to commodities as an investment class back in 1999 preceded the end of the 20-year bear market by a couple of months, is backing silver over gold as an asset class to beat inflation
He told journalists that if pushed to choose between the two precious metals he would choose silver over gold. Rogers has moved to Singapore and he has sold all his dollar holdings because he believes the resumption of the US dollar’s long term devaluation is imminent. He is even shorting US treasury bonds.
Jim Rogers admits that silver has been particularly battered down, and perhaps that is why he likes this precious metal. Silver is leveraged to the gold price, so when gold goes down, silver goes down further. But equally when gold prices rise, silver will rise even higher.
And why is silver leveraged against the gold price? The answer is simple. Both are precious metals but the available supply of silver is less than one-tenth the size of the gold market, and the dynamics of supply and demand in such a situation are obvious.

Buffett and Jim Rogers Warn Inflation Ahead

A parade of luminaries see huge budget deficits and loose monetary policy leading to higher prices. That group includes Warren Buffett, Marc Faber, and Jim Rogers.

Buffett praises government efforts now to stimulate the economy.

Yet he told CNBC that the economy “can't turn around on a dime” and that those efforts could trigger higher inflation once demand rebounds.

“We are certainly doing things that could lead to a lot of inflation,” Buffett says. “In economics there is no free lunch.”

Investment guru Faber also sees the government creating inflation.

“The massive money printing we have and the massive deficits we have now will make it difficult when there are some price pressures for the Federal Reserve to actually increase interest rates,” Faber warns.

Rogers says it’s not just the U.S. government that’s implementing inflationary policy.

“Governments are printing money everywhere, borrowing stupendous amounts,” he told Bloomberg. “Throughout history that has led to problems…and it will this time too.”
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