Posted on 04/21/2009 2:53:58 AM PDT by TigerLikesRooster
Commodities to return: Rogers
‘The world’s food reserves are [low,] so higher prices will occur.’
April 21, 2009
Jim Rogers
The global commodities market is about to make a comeback after years of price declines, which have devastated the food and metal markets around the world, according to billionaire American investor Jim Rogers.
Rogers, in an e-mail interview with the JoongAng Ilbo from Singapore, where he has recently moved to teach his children Chinese, stressed now is time for investors to return to commodities, and warned them to stay away from U.S. currency.
He emphasized that some of the world’s massive government stimulus packages is likely to flow into the commodities market at a quickening pace.
Q. Prices of major commodities like oil, copper and wheat have rebounded so far this year. Do you believe the commodities market has hit bottom?
A. It has hit bottom. But all markets consolidate, so there will be more corrections in the future. If the world will now get better, commodities are the place to be. If the world gets worse, commodities will suffer less.
Oil prices, which sunk from $147 a barrel to some $30 a barrel last year, have rebounded to the $50 mark this year. Do you think this recovery is stable?
The surprise for many will be how high the price of oil stays and how high it goes, since the world is running out of known oil reserves.
The International Energy Agency’s recent study shows the world’s known oil reserves will be all gone in about 20 years unless something major happens soon.
What about the price of gold? It’s falling as global financial markets show more signs of recovery.
Yes, that is perhaps part of the reason for the change.
Another reason is the IMF is trying to sell its huge gold holdings and the market is declining in anticipation.
The United Nations has repeatedly warned of a constant shortage of grain. Do you think the price of grain will rebound?
The world’s food reserves are the lowest in decades, so higher prices will occur.
What investments look most attractive and least attractive to you right now?
Commodities are the best place to be if the world economy is going to get better, as the supplies are declining.
Those who have British pounds should also sell. And the U.S. dollar is a terribly flawed currency that will decline for years.
By Lee Hee-sung [hawon@joongang.co.kr]
Ping!
Anyone who thinks food prices are falling really shouldn't be taken seriously when it comes to financial commentary.
Are you talking food as a commodity, or food at the grocery store?
Once the 'energies' spike upward to very inflationary price levels, the precious metals group will follow due to the fear factor of a far wider war. Stock indexes will plunge. Those with properly positioned put options on stock indexes will greatly gain, as well as calls on the commodity sectors which will be soaring.
Most nations will predictable & disgustingly blame the victim (Israel) for financial pain of skyrocketing energy & food costs along with ultra-bearish share prices, when they should be directly faulting Iran's pack of Islamic killers for provoking the defensive Israeli air strikes.
It could be an extremely deleterious summer and autumn overseas & domestically too, considering Obama Inc have already demonstrated their true colours, vengefully regarding conservatives as 'terrorists'.
“where he has recently moved to teach his children Chinese”
What? THe Internet wasn’t good enough?
He called Tim Geithner the worst Traesury pick ever.
He’s been saying that for more than a year. He was heavily invested in commodities when the bubble burst.
Look for artificial bubble creations to come very soon in basic necessities for living.
The rich hate it when there's few places to 'invest'....'hedge funds for food' for the next gang rape of the consumer, average Joe, Joe the plumber.
It's about power, control, smoke and mirrors and a very few becoming wealthy during global recession.
I am referring to food at the grocery store. I still don't believe that food as a commodity is cheap either. If it was, then such a price drop would be reflected in the retail price of food at the grocery store.
Contrast this with gasoline. If gasoline were priced the same way as food is, it would still be well over $4 a gallon regardless of the price of oil being $40 a barrel or $150 a barrel.
I heard on John Batchelor that Rogers is recommending farming as a future profession that will be more renumerative than financials.
fwiw-
>>I still don’t believe that food as a commodity is cheap either.
Prices of commodity food items are a matter of historical record.
I'm just going to have to be a Doubting Thomas on this one. Or maybe I will start grocery shopping where the people who write those records shop.
uh, ... so you doubt the prices for which these commodities have been trding for are real? i.e. people are not really selling / buying at those prices in the merc’s pits?
No, I simply doubt that these prices are “low” as the article claims.
Thanks for the ping.
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