With silver near multi-year highs, famous commodities bull Jim Rogers warned silver prices could become dangerous if they rose even further to “parabolic” levels, telling The Times of India he is keen to buy more, but would sell if the price rose too fast.
Silver futures surged to a multi-year high of $49.45 per ounce on Monday, but on Tuesday the May silver contract recorded its largest one-day fall in a month.
Silver steadied somewhat on Wednesday .
The price is on track for a 21 percent gain this month and a 47-percent rise this year, making it the top performing precious metal, Reuters said.
“I own silver, but if it keeps going up, it could turn into a problem if it goes parabolic,” Rogers told the newspaper.
“I certainly hope silver goes down for a while. I say it as somebody who owns it because if it goes down, I hope I would buy more and if it goes up too much too fast, then I have to sell,” he added.
He said prices would be “very dangerous” if silver went to $150 this year. But what constituted such "dangerous" levels was dependent on geopolitical and economic factors, Rogers said.
“I do not have any prices in my targets. If suddenly World War III breaks out, then I would not sell silver at $200 this year. So it depends on what's happening and what's causing this,” Rogers said.
“I would have to think about selling because then obviously it would be getting parabolic and it would be very dangerous,” Rogers told the newspaper.
“I hope it does not happen that way. Again I own silver, I would rather see silver go down, yes, for a while, I do not know how far down, but then depending on what causes it to go down, then I hope I am smart enough to step in and buy some more,” he said.