Commodities guru Jim Rogers is predicting that “poor man’s gold” may outperform the real thing in the future. According to a Bloomberg piece that appeared on BusinessMirror (Philippines) yesterday:

Silver, down 35 percent this year, will outperform gold as investors turn to the metal as a hedge against inflation, investor Jim Rogers said.

“Silver will do better than gold,” Rogers, chairman of Singapore-based Rogers Holdings, said on Monday in an interview in New York. “It’s been beaten down horribly. If you put a gun to my head and said you have to buy one, I would buy silver rather than gold.”

Still, that doesn’t mean the former partner of George Soros is turning his back on the yellow metal. From the piece:

Gold may drop as central banks and the International Monetary Fund (IMF) sell the metal to raise cash, said Rogers, who correctly predicted in April 2006 that gold would reach $1,000 an ounce. The IMF in May ratified a plan that included proposals to sell 403.3 metric tons of gold to reduce a budget deficit.

“The IMF has gigantic amounts of gold,” said Rogers, a cofounder with George Soros of the Quantum Hedge Fund. “Maybe gold is going to go down for a while. If gold does go down, I’m going to buy more.”

Source:

“Silver likely to outperform gold as inflation hedge, Rogers says”
BusinessMirror (Philippines), November 4, 2008

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