Tags: Jim Rogers Oil to Keep Rising | Silver to Extend Plunge

Jim Rogers: Oil to Keep Rising, Silver to Extend Plunge

Thursday, 05 May 2011 09:42 AM

Oil prices are going to keep rising because reserves are dwindling, while meteoric silver is due for a break because it rose too fast, says legendary investor and commodities guru Jim Rogers.

"You know why the price of oil is going up? Because there is no oil," Rogers tells CNBC.

The International Energy Agency says the world's oil reserves decline by six percent a year, Rogers points out.

jimrogers200.jpg
Jim Rogers
(Getty Images photo)
"Say they decline by four percent. That means in 25 years there's no oil at any price," Rogers says.

Silver is also a hot commodity, although it may be due for a breather.
"Silver went up 25 percent in a month and that can’t last so that’ll have to come down," Rogers says.

"I hope we have a pullback, I hope it goes down for a while, it’ll be good for the market," Rogers says, adding doing so will unveil good buying opportunities.

The Comex exchange in New York just made trading for silver speculators more expensive by raising the minimum amount of cash that must be deposited when borrowing from brokers to trade silver futures.

Higher margins may cool demand.

"You’re talking about a very volatile market, a very significant run up in a very short period of time," says Michael Cuggino, who helps manage $12 billion at Permanent Portfolio in San Francisco, according to Bloomberg.

"It went too high too fast, and exacerbating it on the downside is the increased margin requirements."

© 2017 Newsmax Finance. All rights reserved.

1Like our page
2Share
StreetTalk
Oil prices are going to keep rising because reserves are dwindling, while meteoric silver is due for a break because it rose too fast, says legendary investor and commodities guru Jim Rogers. You know why the price of oil is going up? Because there is no oil, Rogers...
Jim Rogers Oil to Keep Rising,Silver to Extend Plunge
247
2011-42-05
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved