by Forrest Jones
Tues 4th Jan 2011 09:23AM
Silver is becoming a better investment than the one of the hottest commodities of the past few years, gold, says investment guru Jim Rogers.
Rogers, a commodities champion, says silver prices have more room to grow than do gold prices.
“I would rather own silver than gold," Rogers tells India's ET Now.
“Silver is still 40 percent below its all-time high. So silver has not been any sort of great bubble compared to perhaps some other assets we know."
Other commodities make for good investments as well, including agriculture.
“Likewise for the rice, if rice goes down, I will buy more rice. So both the silver and rice have a great future for the next few years,” Rogers says.
Precious metals tend to rally when the world's reserve currency, the dollar, weakens.
The U.S. Federal Reserve has been printing money in an effort to spur economic recovery, sending the value of the greenback down in the process.
While the dollar has erased some losses in recent trading, concerns over expansionary monetary policy on top of deficit spending in Washington are fueling inflationary fears, which has investors rosy on the outlook for precious metals, gold especially.
"The majority of factors for gold are very positive," Credit Suisse precious metals analyst Tom Kendall tells Reuters.
"If you were looking for negatives, you would have to say the lack of any sizable de-hedging program this year from the miners would be one that you could pick up on, but from the investment community, sentiment is still very much bullish towards gold."
Source: Moneynews.com at Jim Rogers: I Would Rather Own Silver Than Gold.
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