Jim Rogers: Silver is going to go much, much higher

Speaking with CNBC’s Geoff Cutmore on Squawk Box in London on Monday, Jim Rogers said the silver price “is going to go much, much higher—much higher, over the next decade.”

The 68-year-old chairman of Rogers Holdings is betting big that central bankers across the globe will continue to debase currencies.  Moreover, global industrial and commercial demand for silver will remain robust throughout the remainder of this decade as the purchasing power among the growing middle class in Asia increases.

When asked for a six-month prediction, the cagey Rogers, as usual, quipped, “Over the next six months, I don’t have a clue.  You should watch CNBC.

“But I own silver; and if silver goes down, I hope I’m smart enough to buy more silver.  Silver is going to go much, much higher—much higher, over the next decade.”

So who’s the big buyer of silver, driving its price to nearly an all-time record?

This time, Roger’s didn’t mention his favorite go-to response by name: China.  But, instead, he pointed to individual investors, collectively, as the cause, as the catalyst for strong demand for gold’s kissing cousin (in addition to gold) in response to central bankers inflating global money supplies.

“Well silver actually has more industrial and commercial uses than gold does, and they’re finding more all the time for silver,” said Rogers.  “So that’s one buyer; but also more and more people are worried about the debasement of currencies.  Currencies all over the world, Geoff, are being debased by politicians.  There are no sound currencies anymore.  And I’m not the only person figuring that out.”

When asked if he’s worried about news reports of gold vending machines popping up around the world, Rogers didn’t miss a beat.

“Gold will end in a huge bubble someday—someday; but that years away right now,” he said, noting little signs of telltale characteristics of a gold bubble entering the mainstream investor community. “Most people still have not owned gold; if you go to the U.S., there are shops everywhere that says we buy gold.  And the public is lining up to sell their bracelets and necklaces and their old gold.”

When any investment moves into bubble territory, the public will tell us by their actions at the retail counters, as was the case during the gold fever of late-1979 and early-1980.  Back then, bullion dealers across the U.S. were swamped with customers waiting in line for the opening of business, much like what takes place today as soon as new Apple product becomes available.

“Someday you’re going to see people queued up outside those shops buying gold,” Rogers predicted.  “Then you start worrying.  But most people still don’t own gold and never have.”

And how far will the gold price go?  Rogers wouldn’t bite.

“Oh gosh, you gotta watch CNBC.  You can’t ask me a question like that.  Two-thousand, 5,000, 10,000.  It depends what happens with the currencies.”

20110715, BeaconEquity.com