Famed investor Jim Rogers advises investors to purchase silver as its price is substantially low compared to all-time high. Photo courtesy of Jim Rogers

Legendary investor warns of stock market bubbles in 2021

Famed investor Jim Rogers, the founder of the Quantum Fund, recommended investment in silver in the New Year as its price is substantially lower than historic high.

The financial commentator made the advice in a recent joint interview with the Korea News Plus and E-Trend, a YouTube channel focusing on economic and stock market news.

“Silver is down 50 percent from its all-time high. Gold is down 10 percent from its all-time high, less than 10 percent. I will buy both, but I will buy more silver than gold,” he said.

The gold price has moved below $1,900 per ounce over the past month compared to its historic high of $2,069.4 this August.

That of silver approached $50 an ounce in the late 1970’s to fluctuate below the historic high after that. Silver struggled over the past decade but turned around after the virus outbreak to trade at around $25 last month.

Rogers also said that he had bought stocks of companies hit hard by COVID-19 on the belief that things will get better this year.

“I have been buying travel, entertainment, tourism, wine, and restaurant companies because people did not go out and could not go out, but in 2021, people will go out again, and people will travel again,” he said.

The Rogers Holdings chairman also warned about the bubble in the global stock markets, which remained strong last year despite the novel coronavirus.

“I am not very good at market timing, but I would imagine the bubble will pop later in 2021 because bubbles don’t go on forever, and bubbles are already developing in Korea, Japan, America, and some places,” he said.

“Some stocks like Amazon never go down; they go up every day. That is not a good sign; that means that the bubble is beginning. Not here yet; many stocks in Korea and many stocks in America have not gone up yet. Once everything goes up, and the bubble is here, then you should get very worried.”

Asked whether he would invest in big U.S. tech companies like Tesla and Apple, he said that he also worried about bubbles in those stocks.

Readers can check the interview video by clicking on this link.

The publisher studied Korean history in Seoul and management of business administration in the United Kingdom. He has 20-year experiences in the media business. Kim can be reached at voc200@gmail.com or 82-2-6956-6698.