ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Why Jim Rogers likes silver so much

Updated on August 21, 2010

If you're an avid reader of financial columns or watch financial television, you've probably heard of Jim Rogers.

Jim is one of the world's most successful investors. When he talks, it's worth listening.

A small country down boy from Alabama, Rogers teamed up with another successful investor, George Soros and started the Quantum Fund in 1970.

Over the next eleven years, Rogers and Soros chalked up a hefty 3,365% return which absolutely creamed the 47% return from the S&P 500 over the same period.

Rogers is one of the world's leading voices on commodities and has been loudly telling every man and his dog that silver is the 'next big thing'.

It's something I've been reading a lot into and have found that it's a rather simple but compelling argument.

I have outlined the case for silver below.

1) The world currency crisis is leading to increased demand for precious metals

Many of the world's currencies are in crisis.

The US for example has been printing the greenback like there's no tomorrow in an attempt to pay down debt.

This inevitably leads to inflation and reduces the buying power of a currency.

Historically, metals like gold and silver have been strong, safe substitutes for holding currencies.

A government can't go out and 'print' more silver and ruin your purchasing power.

It's likely that we'll see more demand for metals like silver as more and more currencies are devalued due to inflation.

2) Gold is overpriced and less attractive to those getting out of currencies

The price for gold is near all time highs, partly due to investors switching from currencies to precious metals.

This has certainly been the case in traditional gold holding nations such as India.

However, the high price of gold makes in increasingly unattractive to new investors.

While silver has often been the less attractive sister to gold, it is a fairly strong substitute. More and more 'would be' gold investors will be looking towards silver.

3) Silver is near all time low prices

Silver has until fairly recently, been stuck near all time low prices, particularly if you adjust for inflation.

Considering the dynamics at play in point two, this only adds fuel to the fire. Silver is becoming a more and more attractive substitute metal.

Word of the street is that countries like China are encouraging the new emerging middle class to buy silver jewellery for this exact reason. 

4) Lack of new mines

Low prices for decades have meant that nobody has been starting new silver mines.

Higher prices will attract new mine exploration, but finding new silver, setting up a mine and selling the silver could take near to a decade.

In the meantime, restricted supply and icnreased demand could see prices syrocket.

Summary, there's a silver lining in silver 

Nothing's certain in investing, but the environment for a big jump in silver prices looks like it's in place.

Like any investment, you should do your homework to see if it's right for you.

Good investing!


    0 of 8192 characters used
    Post Comment

    • profile image


      8 years ago

      Crudeoil Weight in Rogers International Commodity Index IS 21% AND IN CRB 23%, If substitute for oil should do well in the long term then they can realign Indicies.

    • jf_2000 profile imageAUTHOR


      8 years ago from Las Vegas

      Anything that's a substitute for oil should do well in the long term.

    • profile image


      8 years ago

      Jim is also telling to buy natural gas and it's down 25 % this month.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)