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Jim Rogers says stock up on silver chopsticks and rice
By BI-ME staff | Sun October 10, 2010 12:24 am

INTERNATIONAL. Legendary global investor and chairman of Singapore-based Rogers Holdings, Jim Rogers believes commodities stand to benefit whether the economy rebounds or not.

Speaking in a CNBC interview with Maria Bartiromo on Monday, Rogers said: "If the world economy gets better I'm going to make money in commodities. If the world's economy doesn't get better I'm going to make money in commodities, because Mr Bernanke is already talking about printing money".

If there are great opportunities in the stock market, the opportunities will be better in commodities because the shortages are worse in commodities, he argues.

Rogers reiterated his opposition to printing money, saying "it is the wrong thing to do". In a classical 'Rogers runt' he expressed disbelief at people still paying attention to what Fed chairman Ben Bernanke says, given "how dead wrong he has been".

"They've all been dead wrong, totally unadulterated wrong," he said. "Unemployment is higher now than it was before. Everything is worse instead of better. Let people go bankrupt. Let the system clean out and start over."

"The best opportunities right now are in commodities because whatever happens you are going to make money in commodities," he said.

What's the 'big thing' in commodities?

"Look at the ones that are still cheap," said Rogers. Rice will do well among soft commodities, he predicted.

"Get yourself a tractor," he said, predicting that agricultural commodities have another good 5-15 years ahead because of under-investment in the sector. He also likes sugar.

Regarding precious metals, "look at the ones that are still down," he said, adding that silver may be a better buy now than gold because it is well off its historical high and on a percentage basis - will probably go up even more.

"Gold is making all-time highs, silver is still 60% below its all-time highs," he said.

Does this mean gold has peaked?

"Gold is going to go a lot higher over the next decade," Rogers said.

"It may slow down for a while because it's run up so dramatically here in the last few weeks. But gold's going to be much higher," he said, adding "don't sell your gold".

"Adjusted for inflation it should be well over US$2,000 now. When I say something like it's going to 2,000 in 10 years it's not a very dramatic statement given the state of the world. I'm sure it's a given."

The legendary investor said a bubble is forming in US long-term government bonds. If not there yet, we do not have the end of the bubble yet, he argues.

Turning his attention to currencies, Rogers said: "Right now everyone is pessimistic about the dollar, including me, so I wouldn't sell the dollar right now. In the long run though he believes the dollar will keep going down.

"I am pessimistic long-term but I found in life it's better being a contrarian than not be," he said.

Speaking in a Teck Ticker interview on Wednesday, Rogers said: "Central banks around the world are going to print money till we run out of trees". Investors should protect themselves with real assets, he argues.

When you print a lot of money or when you give people a lot of money, the people that are getting the money are better off, but the country and the world as a whole is worse off, he said.

People in the financial markets feel much better but the world is not better, it is getting worse, Rogers added.

How long can the printers go on?

"Eventually, they are going to run out of trees," he said. They can't keep on printing money. "The US government can't triple its debt again".

"Eventually the currency markets are going to get into turmoil...and eventually interest rates will start going up and people are going to realize we have problems and they are not beeing met by printing money," Rogers said.

The only way to build an economy long term is to save and invest while building infrastructure and productivity, Rogers said recently. Nothing else has ever worked, he said, adding that the idea of economies built on consumerism has been discredited many times.

The future has always belonged to the people who’ve got the assets — the people who’ve built up savings and investing.

Any tips for individual investors?

"Buy yourself some silver chopsticks or some silver cutlery, and buy yourself some rice, stock up with rice and you will be very rich in 5 or 10 years," Rogers told India's Economic Times.


Jim Rogers says stock up on silver chopsticks and rice
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