Gold will rally, but silver will do better: Jim Rogers
The yellow metal took a big hit in 2013, registering its biggest drop in last three decades, as the super cycle in commodities got challenged and the basket made a U-turn.
How will 2014 be for gold?
"There are huge shorts that have developed in precious metals as you know. So, it's overdue for a rally. We had a big drop in 2013. Everybody got negative, everybody got short. So, we are going to have a rally," says Commodities Guru Jim Rogers.
"After the rally, the year will see it going down again and hopefully finally we will make a nice bottom and we can buy gold again," he says. Is
silver looking a better investment than gold?
"I would prefer silver to gold. I am not buying either at the moment. Silver is down 60% from its all-time high, gold is down 30-35% from its all-time high. But i won;t buy just because they are down," says Jim Rogers.
On the last trading day of 2013, the yellow metal slipped to a six-month low, making for its biggest annual decline in 32 years.
The reason is attributed to rising prospects for global economic recovery, which is making investors switch to riskier assets.
After seeing a bull run over the past 12 years, the metal shed 28% in 2013, with the US Federal Reserve deciding to begin the
tapering of its 85-billion-dollar-a-month easy monetary policy. This undermines an investor's rationale for holding the metal.