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."
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.