Thursday, November 19, 2009

Jim Rogers: Avoid Mining Stocks

A large number of investors have looked to Jim Rogers for advice on how to play the ongoing rise in silver and gold, as it looks like there's no end in sight as to how high the prices of the two precious metals will go in the years ahead.

Rogers has cautioned that he wouldn't by gold through mining stocks unless you're a great stock researcher and picker, as investing directly in gold and silver over the years has proven to be the best way to make money.

He applies that to all commodities as well, where studies confirm investing in commodities in and of themselves outperform commodity companies.

Even though gold is far below its high when adjusted for inflation, it is hovering near its all-time highs as far as price goes.

Rogers says while he's not buying, neither is he selling, as price will go up without a doubt, even if there are the usual corrections.

Concerning gold, Rogers recently stated that there is no doubt in his mind that gold will surge past the adjusted for inflation high of about $2,000. Peter Schiff has said he could see it going as high as $5,000 in the current commodity bull market.

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