According to prominent investor and commodities advocate, Jim Rogers, oil prices are projected to continue increasing, given the depletion of worldwide reserves. However, the expert maintains that silver is expected to drift downward, as its initial ascent was too much, too fast.
Rogers, the chairman of Rogers Holdings and Belland Interests, Inc as well as the co-founder of Quantum Fund (along with George Soros), has boldly stated that crude oil prices will undeniably rise in the next ten years because “there is no oil.”
Just because known oil reserves around the world are in steady decline, does not diminish demand. Nations will keep searching until the last few drops of oil have been found and exploited, he asserted, adding that such chaos may ensue before the hunt for alternative energy gains any tangible momentum.
The International Energy Agency has concluded that the world’s oil reserves trend downward approximately six percent annually. Each day, the world uses 86 million barrels of crude oil.
“We will certainly have dips in oil prices, we will certainly have consolidation,” he stated with certainty. “I hope we do.”
Rogers posed the hypothetical that if a sizeable oil field were found; it would only sustain the world for a few years, at best.
Rogers, whom the media calls a “legendary investor” has been extraordinarily vocal in regard to the recent unpredictable rises and falls of precious metals in the market.
“Silver went up 25% in one month and that can’t last…”
He went on to say that these commodities have been going straight up, and characteristically, that which climbs so quickly, falls just as fast.
He believes that a downswing would be beneficial for the market. For now he says he is “just watching,” according to an interview in The Economic Times.
“If it goes down, I hope I’m smart enough to buy more silver.”
In addition, Rogers, a notorious proponent of the free market has recently been a critic of the Federal Reserve and specifically Chairman Ben Bernanke’s performance.
“When he was asked about currency movements, I nearly fell off my chair,” he said in regard to Bernanke’s first televised news conference. “He built his entire intellectual career around printing money and the government has given him control of the printing process.”
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He anticipates that the Fed will intervene in the economy as we close in on the 2012 election cycle.
“The Fed has always been aware of election cycles and tries to make the economy good ever since the 1980s; …I say that with scorn.”
By. David Moenning of Top Stock Portfolios
