Are you an exchange traded fund (ETF) investor worried about how our country’s loose monetary policy could affect the economy? Then you may want to listen to the advice of investment guru Jim Rogers.
Sitting down with Judge Andrew Napolitano on Investment Postcards, venture capitalist Jim Rogers discusses his take on how to profit in times of reckless monetary policies.
Rogers remarked that “[Federal Reserve Chairman Ben] Bernanke, he does not understand finance, economics and currencies; all he understands is printing money and now that we have given him the printing presses, he has run those printing presses as fast as he can.” [Silver ETFs: Catch ‘Em on the Rebound.]
Rogers says playing this is simple: find things that will protect your assets by investing in things that will hold value in inflationary environments. He likes metals, particularly silver.
iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver (NYSEArca: SIVR) are the two ways to get your physical silver exposure. Rogers notes that silver is 40% below its all-time high, and going forward, silver is relatively cheap and undervalued.
He also espouses gold and silver futures, which can be owned via PowerShares DB Gold (NYSEArca: DGL) and PowerShares DB Silver (NYSEArca: DBS).
Rogers cautions investors to be careful when trading in the futures market – and we agree. Do some due diligence before jumping into ETFs, even if you’re acting on an expert’s advice, because ETFs are not one-size-fits-all.
Max Chen contributed to this article.