Jim Rogers Is Bullish On All Commodities, But There's Only One Sector He Would Buy Right Now

Business Insider ^ | 09/26/2011 | Gus Lubin

[SeekAndFind]

Jim Rogers is a long-term bull on commodities based on scarcity in a growing world.

Silver and gold "will both go much higher over the next few years," he tells Economic Times. Oil prices will recover as "known quantities of crude continue to decline." Sugar is going to "at least double or triple before this all is over."

But there's only one sector he would buy right now:

I am thinking about buying agriculture right now. I am not thinking about buying base metals or gold or oil right now, but I am thinking of buying agriculture maybe this afternoon. That's where demand will come first. Probably precious metals second, then the rest of the commodities.

Agriculture is facing some very serious problems whether the world economy slows or not because we have shortages of everything. The inventories are very low. We even have shortages of farmers developing in many countries. The average age of farmers in America is 58, likewise Australia. In Japan, it is 66. You have hundreds of thousands of Indian farmers committing suicide. It has been such a terrible business. Higher suicide rate of any profession in the UK is in agriculture.

So farming has got serious problems facing it. We are going to see much much higher prices over the next decade. So I would buy agriculture soon. The others, I am more watching the world economy and the world markets before I step in.

[SeekAndFind]

WHO IS JIM ROGERS?

James Beeland Rogers, Jr. (born October 19, 1942) is an American investor and author based in Singapore. He is chairman of Rogers Holdings and Beeland Interests, Inc. He was the co-founder of the Quantum Fund with George Soros and creator of the Rogers International Commodities Index (RICI).

Unlike his ex-partner Soros, Rogers is an outspoken proponent of the free market, but he does not consider himself a member of any school of thought. Rogers acknowledged, however, that his views best fit the label of Austrian School of economics

[SeekAndFind]

CAVEAT... On November 4, 2010, at a talk in his alma mater, Oxford University’s Balliol College, he urged students to scrap career plans for Wall Street or the City, London’s financial district, and to study agriculture and mining instead. “The power is shifting again from the financial centers to the producers of real goods. The place to be is in commodities, raw materials, natural resources.”

In February 2011 Rogers announced that he has started a new index fund which focuses on “the top companies in agriculture, mining, metals and energy sectors as well as those in the alternative energy space including solar, wind and hydro.”

The index is called The Rogers Global Resources Equity Index and according to Rogers, only the best and most liquid companies go into the index.

[Lazlo in PA]

Oil prices will recover as "known quantities of crude continue to decline."

People keep saying this, but we keep finding new areas and technology keeps progressing to get reserves that were inaccessible previously. I am starting to think this idea is a bit of a canard.

[youngidiot]

People keep saying this, but we keep finding new areas and technology keeps progressing to get reserves that were inaccessible previously. I am starting to think this idea is a bit of a canard.

Whats more, they've gone back to old, dry wells, only to find them full again. Oil is made by some natural process, I'm not sure how. But it stands to reason that it continues to be produced today.

[webstersII]

Rogers hasn’t had a good call in years.

[silverleaf]

Nice talk, if you can afford to buy vast tracts of Canada, Brazil or Zambia

[silverleaf]

look up abiotic oil

the Russians have known about this for years and are not too crippled by PC to take advantage

[SeekAndFind]

Or you can go with Exchange Traded Funds (ETF) that track the price of food commodities.

[Lazlo in PA]

A number of years back, a Soviet scientist argued that oil is being produced as we speak and this concept that oil comes from dinosaurs and is finite is silly. Most laughed at that guy, but there is more and more evidence every day that oil may somehow be a renewable resource. Hard to say either way right now.

[cuban leaf]

Did I mention I bought my first tractor last weekend?
8-D

[cuban leaf]

—I am starting to think this idea is a bit of a canard.—

Especially since the theory that oil is constantly produced by the planet, as opposed to the bodies of dead dinosaurs, is gaining real support.

It may be almost as renewable as water. Well, “almost” may be a stretch.

[cuban leaf]

Oops. You beat me to it.

[cuban leaf]

Thomas Gold. Google his name with the word “oil”. He seems to be the Peter Schiff of oil.

[SomeCallMeTim]

People keep saying this, but we keep finding new areas and technology keeps progressing to get reserves that were inaccessible previously. I am starting to think this idea is a bit of a canard.

Here's an interesting write up on a report about the fallacy of "peak oil".... be sure to check out the embedded link to the actual report...

http://blogs.marketwatch.com/fundmas...mpending-doom/

[familyop]

Mr. Rogers’ hints are the only sane and honest ones coming through from the carnival of cloak and dagger market foolery. They’re terrified of the panic to come from realization of the truth about global consumption, which is rapidly increasing anew in “developing” countries. Another thing: shutting Iran’s nuclear weapons plans would require enormous quantities of oil. So our fearless leaders are allowing Iran to continue mounting them.

Natural resources in particular, my friends—especially oil. Many in the market are hoping that no one else notices.

[Longbow1969]

A number of years back, a Soviet scientist argued that oil is being produced as we speak and this concept that oil comes from dinosaurs and is finite is silly. Most laughed at that guy, but there is more and more evidence every day that oil may somehow be a renewable

The Russians have largely abandoned that theory. I believe it was called Abiogenic petroleum origin theory or something along those lines. It has been mostly discredited and very few people buy into it.

I think there just happens to be far more oil than people imagined. Peak Oil is probably a bunch of crap. I am no way concerned we are near running out of fossil fuels.