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.