Jim Rogers hedges gold holdings

I'd rather buy silver (SLV -3.8%) says Jim Rogers, when asked to choose between precious metals. Gold (GLD -2.1%), he says, is off about 30-35% from its highs while silver is down more like 60%. Rogers is an owner of both, but not adding just yet, and while he's hedged his gold holdings, he hasn't done so for silver because it's already down so far.

"If it goes down more, I hope I'm smart enough to buy."


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Comments (20)
  • SivBum
    , contributor
    Comments (2790) | Send Message
    Have to give him credit for sticking with strategy ... One of these days, PM will double from today's prices, as Gold blasted off from $50 when Nixon disengaged linking the dollar to gold in by 1973.
    12 Dec 2013, 03:26 PM Reply Like
  • weaherne
    , contributor
    Comments (2) | Send Message
    I think August 1971.
    13 Dec 2013, 09:05 PM Reply Like
  • 6151621
    , contributor
    Comments (1172) | Send Message
    good catch weaherne. Here's the Pres. Nixon statement "temporarily" suspend convertibility of dollar into gold:


    14 Dec 2013, 02:35 AM Reply Like
  • chcc
    , contributor
    Comments (156) | Send Message
    Hedge one because it drops less, and don't hedge against another because it drops more. That doesn't seem to have much insight.
    12 Dec 2013, 03:54 PM Reply Like
  • 6151621
    , contributor
    Comments (1172) | Send Message
    It's the markets, no need to make sense. Rogers must do something right trading otherwise he wouldn't have so much $$$ from trading.
    12 Dec 2013, 04:31 PM Reply Like
  • Stephen Aniston
    , contributor
    Comments (3476) | Send Message
    It's pointless to hedge when the price is already cheap. You hedge at the top, not at the bottom.
    13 Dec 2013, 10:44 AM Reply Like
  • filipo
    , contributor
    Comments (4680) | Send Message
    Sometimes a bottom later appears to have been a top.
    13 Dec 2013, 11:00 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2087) | Send Message
    Bot some more scrap metal today. 30 odd Canadian silver dollars, and a few more Morgans. Not fooling around. Adding 15 more $2.5 Indians 1908 - 1929, (third set) a Pan Pac Commemorative, (all gold and silver stuff)
    Better not wait too much longer. Price action is giving us a warning of higher prices. I don't know what more has to be sorted out, but it is sure sorting.


    People love end of times things of all kinds: economic, social, wars, and so on...
    The world was supposed to end twice recently, [2000 & the other one]. A Bing search JUST now:http://binged.it/1bB0HFp of "collapse" will yield 100,000,000 results today. Now many are saying 'Yellen will cause the end. I have been reading/hearing for years now how America is doomed, collapsing along with the DOW and the early recession many were calling for the mother of all depressions. (2007 circa) Along with it would go our currency, {last I checked, folks were gladly taking my dollars} Hmmm, last time I checked, all who called for the DOW to collapse.....And the USA is still here. What about all the conspiracies to 'do us in'?? The doers us in, ain't doin' so good. Now I do agree we are going downhill, but no collapse in sight that I notice. If some are right, the entire global financial system is going to collapse. Besides anyway, I know people don't take iceberg warnings seriously.
    What is happening is a slow erosion of our money's value, what it will buy. And what it is compared to what it was. These things we can track easily with a little time for looking back. It starts with the U.S. dollar, and the fact that it's a piece of paper and not actual money [sometimes called 'fiat' currency]. To be considered money, it must be a store of value and a medium of exchange. The dollar is only the latter, so it is not money. Like all notes, your mortgage for example, a dollar is a promise to pay. Try buying something with your mortgage note. The dollar is a note — a debt instrument. To think it has inherent value is absurd.
    I mean, read what it says on the top of any of your folding money. It is a NOTE isn't it? So what is its promise to pay? Nothing I can see. It used to be a store of value and you could get gold or silver for it. Not now buddy, cause there isn't enough gold in the land to redeem all the scrap paper out there for gold.
    Now, aren't the following statements true?
    1)Dollar Down,
    2)Wages Down,
    3) Savings Down,
    4) Costs Up
    5)Median household income is down more than $4,500 since 2008, from $56,000 to $51,500.
    6)Personal savings rate down
    7)Amount of personal savings dropping more
    8)The of increase in goods and services is well documented as rising while incomes and savings drop.
    9) Actual employed down ( this simply gives less taxes to government to fund rising costs. ) Try that at home.
    As of this year, fewer than 64% of working-aged adults are choosing to participate in the labor force. Is it any wonder that federal tax revenues have remained flat for decades. And with federal spending up over 30%, is it any wonder we are watching a slow death of our financial system. BUT it is not collapsing.
    But it probably will. You just all of a sudden wonder what happened and your biggest wonder will be why didn't you buy silver and gold as I told you to when it was not wanted and falling in price.
    I bought more today, and made a date to buy more from the same person. Told him to call me when ready. His wife is gonna need $15K for a new baby, I will give him the money for some silver.
    Go to the debt clock and watch what I just said happen before your eyes if you think I'm goofy.
    Capt. Brian
    The Lost Navigator


    12 Dec 2013, 05:11 PM Reply Like
  • Hendershott
    , contributor
    Comments (1894) | Send Message
    Contrarian tactics like buying FU before it was halted?
    12 Dec 2013, 08:34 PM Reply Like
  • Hendershott
    , contributor
    Comments (1894) | Send Message
    If it all collapses Brian, your gold and silver won't help. Perhaps you should stockpile cartridges instead. Something everyone would need.
    12 Dec 2013, 08:38 PM Reply Like
  • 6151621
    , contributor
    Comments (1172) | Send Message
    "cause there isn't enough gold in the land to redeem all the scrap paper out there for gold" -- unless gold were much higher in price.
    13 Dec 2013, 03:24 AM Reply Like
  • filipo
    , contributor
    Comments (4680) | Send Message
    Quo usque tandem abutere, Bernanke, patientia nostra ?
    12 Dec 2013, 05:57 PM Reply Like
  • Leroyboy66
    , contributor
    Comments (34) | Send Message
    He has done well over the years using contrarian tactics which seem to mystify even himself...
    12 Dec 2013, 06:27 PM Reply Like
  • Starman1
    , contributor
    Comments (19) | Send Message
    Brian knows. To get more info on this Google in
    Hidden Secrets of Money Episode 4 YouTube.
    The leaders will attempt pull a rabbit out of the hat or some other magic to save us all. I hope the rabbits ears don't come off in the process. Perhaps there will be a global currency reset or some other global feat.
    Carl Spletzer
    12 Dec 2013, 09:23 PM Reply Like
    , contributor
    Comments (21) | Send Message
    In Silber Phyzz I Trust!
    13 Dec 2013, 04:54 AM Reply Like
    , contributor
    Comments (21) | Send Message
    Silver, A Better Bet Than Gold!
    13 Dec 2013, 04:55 AM Reply Like
  • Tom Durek
    , contributor
    Comments (111) | Send Message
    To The Lost Navigator:
    You are not as lost as you may think. Thanks for explaining that money can be either a medium of exchange or a store of value. Governments and banks control it as a medium of exchange by issuing it as coins, paper bills, or credit/debit accounting-book entries. Some inherently durable things such as gold and silver can act as a store of value. They maintain their value because they maintain a nearly constant total supply because of the nature of producing them. Unlike other commodities there is only a small increase over time. This makes them a unique commodity to store and maintain value as money. Governments' and banks' demand for this store of value appears to be declining except in China and India. People's demand has not yet picked up the slack in gold and silver as people pay off debt or buy other goods or services. People's demand foe gold and silver may increase if higher inflation occurs or there is a financial crisis in other assets such as real estate, equities, bonds, or money funds. The prudent investor holds insurance for these by holding some gold or silver. Usually about 5%. I hope this discussion will put us back on course and that fewer people will be lost about the true value of gold and silver.
    13 Dec 2013, 08:29 AM Reply Like
  • Breakout Theory
    , contributor
    Comments (3) | Send Message
    Jim a smart guy. It's obvious he's starting to get bearish of precious metals. However, I think it's a little too late. Gold has been bearish for over a year now.
    13 Dec 2013, 01:41 PM Reply Like
  • redsalmon
    , contributor
    Comment (1) | Send Message
    I'm in basic agreement w/ Jim. Inflation is rising faster than we are led to believe. I usually trade in and out of silver & bullion but, I have been in the accumulation faze for the past year or so. It's a great way to make tax free dollars when selling at a positive. Bullion aside, I actively trade just 2 ETF's, DUST & NUGT. I don't believe in being diversified beyond these 2 in the markets, period. Diversification does not make you money. I make 1 trade with all the apples, pay the fee of $7 in and $7 out for the entire lump. When you get some movement in the share price, it's good to be holding a lot of shares, as I do. The simple formula for an example is, by owning say 10,000 shares, a 1 cent move up is $100, 10 cent rise is $1000, a 1.00 move up is $10K, etc. My preference is to trade within my ROTH IRA where there are zero tax implications(if you are over 50 and have had your Roth for 5+ yrs) no matter how much or how often you trade(there is that SEC ruling that prevents you from accessing the proceeds for 3 business days from the sale, so you have to wait to trade again...) but that issue aside, whether you hold a stock or etf for minutes, hours or days there never will be taxes due on the proceeds. I like that I can get a lot of bang out of a $7 trade by using this simple method. good luck guys!
    13 Dec 2013, 10:10 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11388) | Send Message
    You'd better listen to Jim.
    14 Dec 2013, 12:00 PM Reply Like
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