Popular investor Jim Rogers, who co-founded the Quantum Fund in 1973, recently told Indian outlet ET Now that he expects a financial downturn, and it will “be the worst in my lifetime.”
Rogers, 81, is pessimistic about global markets for two reasons: it’s hard to find any asset class that hasn’t risen, and the world’s debt problem continues to grow.
Holding cash, waiting to buy
The co-founder of the Quantum Fund said he is heavy in cash and is not currently deploying his money into any major investments.
“The U.S. has not had a problem since 2008 and 2009. That’s the longest in American history, so America, and therefore the world, is long overdue for a problem,” he said. “World markets have had problems every few years for centuries, but (right now) everyone is strong except China, so we’re overdue.”
Is the time for gold and silver now?
Rogers split his opinions on gold and silver during the interview with ET Now. While he owns gold, he said he is waiting for the yellow metal to drop in price before purchasing more, noting that it could be an excellent investment during a financial downturn.
“Gold and silver often make the first bottom and start going up before the markets start to (recover),” he said.
However, he noted that he is closely watching silver for an entry point simply because the metal is one of the few assets that isn’t nearing all-time highs.
“Silver is down 40 to 50% from its all-time high. Silver is down, China is down, some agriculture is down, but most things have been very strong,” Rogers said. “I would rather have my money in silver than many other things right now."