Jim Rogers on Gold, Dollar, Commodities in 2009

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It is the time of the year, when you love to recollect what others said on things you like and dislike. And on commodities, what better voice to listen to than that of Jim Rogers, the global investing guru on commodities. Rogers’ views on gold, silver, platinum, palladium, dollar, pound and agricultural commodities were the most resounding during the whole of 2009.

Rogers, chairman of Rogers Holdings, and a vocal critic of America and Britain, has been arguing all through 2009 that agricultural commodities are the best investment place to put your money.

His argument on agri commodities is that since farmers cannot get loans, they can not get their fertilizer. “No company is opening a new mine, leaving supply problems open to shortages,” he said pointing out that commodities prices will naturally rebound in the next few years.

In 1998, Rogers launched the Rogers International Commodity Index, a composite, US dollar-based, total return index, designed to meet the need for consistent investing in a broad based international vehicle. The Index represents the value of a basket of commodities consumed in the global economy, ranging from agricultural to energy to metal products.

Rogers also blasted British pound saying: “The charm of United Kingdom is all over and it would be prudent if you sell all their currency (pound sterling) fast.”

With his focus on agricultural commodities, Rogers has been saying that he has great hopes on China because China is an agricultural gaint. Rogers, author of such famous books like Hot Commodities and A Bull in China, recently launched an agricultural commodities index focused on food consumption in China.

Saying that China is a fascinating place to invest in, Rogers said China is on the rise, like America 100 years ago, and the problems the Asian giant is encountering right now in certain, mainly export-driven, sectors of its economy will not alter the country’s long-term trajectory.

According to Rogers, three billion people living in Asia, most of them in India and China, will account for a major portion of the total demand for commodities in the coming years. Rogers, who has been putting money into agricultural commodities in China, also said he is ready to buy gold as and when prices drop. He says silver is a better buy than gold, and Rogers is buying silver also these days.

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Jim Rogers has taught finance at Columbia University’s business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China. See his website.

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