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Could we see $100 silver prices in 2011? Jim Rogers says yes

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In an interview with Financial Survival Radio, the creator of the Rogers International Commodities Index Jim Rogers was asked point blank this week whether or not he thinks silver prices could run into the triple digits.

“If it does, then we’ll all have to sell because then you’ve got a bubble, you’ve got a parabolic move and all parabolic moves end badly,” Rogers says. “I certainly hope it doesn’t happen because I own silver and want to buy more.”

Still, Rogers refuses to rule out the possibility that a parabolic move could be starting up. “I’m worried about silver, if silver continues to go up the way it has been in the last two or three weeks, yes, then it would get to triple digits this year, but then we’d have to worry. It’s not parabolic yet. I hope something stops it going up in the foreseeable future and we have a correction.”

What is a parabolic silver move?

Parabolic moves in any commodity – whether it be stocks, silver or tulip bulbs – typically occur at the tail end of a bull market. Investors begin piling into a trade after watching a strong and sustained uptrend in prices. As more and more investors jump aboard, prices rise even faster. Eventually, panic buying sets in and stocks charts show nearly vertical appreciation.

The best example in the silver market occurred in 1980 when the Hunt Brothers, the sons of a rich Texas oil tycoon, almost single-handedly cornered the silver market. At one point, they owned or had rights to $4.5 billion of the white metal.

Silver prices climbed throughout the 1970s before blowing up late in 1979. As the Hunts amassed more and more of the metal, the general public got in on the act, too.

“The gains were so fast they defied belief,” writes Adam Hamilton at

Between mid-August 1979 and early October, silver prices shot up 100 percent. By December, prices were up 300 percent. Then, on the first day of trading in 1980, silver shot up an unbelievable 33 percent in a single day. The price of silver kept climbing from there until it had quintupled from its mid-August lows.

By March 1980, prices fell back to their pre-parabolic highs wiping out millions of dollars in investment in a few brutal weeks of trading. Silver hasn’t come close to touching those 1980 highs in the three decades since – until now anyway. Silver ended trading yesterday near $46.50 an ounce; just $3.85 off it’s record high of $50.35 in January 1980.



Why has the media gotten silver price forecasts so wrong?


Silver Thursday, the Hunt Brothers, and the collapse of a precious metal


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One Response to Could we see $100 silver prices in 2011? Jim Rogers says yes

  1. james moylan says:

    I have a web site where I give investment advise on penny stocks and stocks under five dollars. I would like to comment about silver its april 22 and silver is almost 50 dollars an ounce I think theirs a good chance with the way things are going that silver could get to 100 dollars an ounce.

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