Jim Rogers Likes Silver More Than Gold at This Time

Billionaire commodity expert Jim Rogers reiterated his current stance on gold, saying he's looking more towards silver than gold as the better investment at this time, citing the fact that silver is down more than gold, and gold has also had a decade of increases, which means it is susceptible to a major correction.

As measured by an historic basis, silver is about "40 percent below its all-time high," says Rogers, adding that "gold is 10 percent to 15 percent below its all-time high."

In other words, he sees more upwards potential.

Even if there is more stimulus around the world, which is highly likely, and if gold gets a boost from that, silver is likely to get an even bigger boost from stimulus, especially as it would at least appear to renew industrial demand from manufacturers around the world.

Gold would benefit mostly from the safety and defense against inflation factors, while silver, on a secondary basis, would also benefit for the same reasons.

BHP (BHP), RIO (RIO) Jump on Rising Commodity Prices

Rising gold, silver and copper prices are pushing up the share price of diversified miners BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO), as safe haven status and growing copper demand offers the commodities support and growth.

Copper demand and prices are rising on the fact that Japan will need a tremendous amount to rebuild the country. Other commodities like aluminum and steel will also generate strong demand over time.

Gold is up on the various geo-political and economic crises around the world, with the never-ending sovereign debt crisis in the EU again adding fuel to the fire.

Silver continues to rise on an alternative to gold as well as demand as an industrial metal.

BHP was trading at $ 90.94, gaining $0.92, or 1.02 percent, as of 2:20 PM EDT. Rio Tinto was at $68.57, up $1.05, or 1.56 percent.

Is Silver Rally Real of Just a Tease?

Silver seems to be exceptionally good at taking as few people along for the ride as it can. This can be frustrating for silver investors, but is great for the health of the long-term bull market in silver. The only way bull markets sustain themselves over the long term is to rebalance sentiment along the way, to prevent overwhelming bullishness from extinguishing the long-term rally.

Silver bucks investors off its bull run by trading in the following three ways: First, it has long and flat consolidations that shake off investor confidence and eventually cause them to bailout of their positions, often at the wrong time. Second, when it does rally, it does so in a non-stop runaway-train manner, right from the start to finish into a spike high. Third, once the spike high is over, silver immediately has a big correction, temporarily wiping out a big portion of the previous gains.

Although silver recently had a down month in January, it has recovered to a new high so far in February. This is a good sign that silver could be in rally mode still, and not ready for another long multi-month consolidation. Whatever the future holds for silver, it will do its best to take as few people with it as it can.

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Citigroup (NYSE:C) Sees Silver Outperforming Gold

Over the medium term, Citigroup (NYSE:C) says silver prices could outperform gold prices, as industrial demand for silver continue to rise.

Citigroup analyst David Thurtell said this, "Gold is likely to encounter repeated resistance at the US$1,250 mark over the coming month. The seasonal low period for buying in India is upon us, which will take some of the heat out of the market."

Over the six to twelve months, Citigroup thinks silver could reach $20 an ounce.

I'm not that impressed with the idea Thurtell is making his decision in what appears to be seasonal fluctuations in demand from India, which is high during their seasonal wedding periods.

To tie the existing gold market into India gold jewelry demand doesn't compute, and doesn't account for any of the factors as to why gold prices continue to rise.

That being said, the possibility silver will rise higher than gold in the medium-term is definitely a possibility, although it has nothing to do with whether the people of India are buying gold jewelry.