Custom Search



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

Posted by

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 Zealllc.com.

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.

Related

BLIND LEADING THE BLIND


Why has the media gotten silver price forecasts so wrong?


THE DAY THE SILVER MARKET DIED


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


SILVER EYING $50/OUNCE


Silver just five trading days away from all-time record high price


ARTIFICIAL MARKETS


Silver market manipulation can’t be ruled out


PUT YOUR MONEY WHERE YOUR MOUTH IS


How to invest in food stocks

1,000 DIFFERENT ANGEL INVESTORS


Crowdcube: How to invest in tech startups

Comments

comments

Powered by Facebook Comments

Tags: , , , ,

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.

Leave a Reply

Name and Email Address are required fields. Your email will not be published or shared with third parties.









Killer Articles

Top 10 best gold and silver ETF funds

Here’s a look at the Top 10 best gold and silver ETFs that trade on major U.S. exchanges. We’ve ranked them by volume, as some of the niche ETFs in the precious metals market are so... Read on.

3 reasons NOT to invest in Groupon’s IPO

An IPO date hasn’t been set, but here are three big warning signs you might want to consider before investing in Groupon’s stock... Read on.

From start-up to titan: The unofficial tech IPO calendar for 2012

From Facebook to Twitter to Groupon, the planned tech IPOs in 2012 could be among the most exciting string of new public companies... Read on.

How to invest in water stocks

Often overlooked as a commodity, water supplies could become increasingly critical as emerging economies around the world improve their diets and demand more agricultural resources for the production of meat... Read on.

World’s largest economies in 2050 will look very different

India’s rapid ascent to economic supremacy will be driven by a surging working age population, which will grow more than 40 percent between now and 2050... Read on.

How to invest in cotton stocks

If you’d like exposure to cotton markets without delving into futures and options contracts, a handful of cotton ETNs and cotton-related stocks are available... Read on.

How to buy Chinese Yuan

The Chinese yuan or renminbi has risen about 5 percent a year over the past five years, and some investors argue that China’s currency is still undervalued by 40 percent. If the dollar suffers ... Read on.

Five cheap franchises to start with less than $10,000

Franchises are so ubiquitous we often don’t realize we’re shopping at one. From McDonald’s to Hampton Inns and doggie day cares to campgrounds, they’re literally everywhere. All told, franchises account for 10.5 percent of all businesses in the U.S, and they... Read on.

Why invest in silver?

Ask 10 people why you should invest in gold and silver, and you’ll probably get 10 different answers – many of which will be accompanied by a shrug. Most investors don’t understand the motivation for holding gold or silver bullion. Nonetheless, it’s been difficult to ignore... Read on.

How to Invest in Copper

Copper isn’t as glitzy or glamorous as gold or silver, but in many ways it feels safer. Since copper is regularly used in electronics, it’s consumption per person (particularly in the developed world) has been on the rise for decades. So how does one invest in copper? Read on.