Stay with Silver, Rice, Other Real Assets

by Justin Rowlatt Wall Street Pit      

Jim Rogers, CEO & Chairman of Rogers Holdings told CNBC on Wednesday that the recent decline in commodity prices have little to do with fundamentals, or concerns about the strength of the global recovery, and everything to do with the collapse of brokerage firm MF Global.

According to Rogers, the sell-off is “artificial.”

CNBC: “With MF Global going bankrupt [MF Global declared bankruptcy nearly 4 weeks ago] – which was a gigantic commodities firm – there was a lot of artificial forced liquidation of commodities. People have to sell whether they like it or not. It’s artificial selling right now,” Rogers said.

Agricultural commodities have been the hardest hit from the collapse of MF Global – with rice futures currently printing the tape at 4 1/2 month lows; falling more than 14% and wheat futures down 9% in the period.

Rogers says the recent weakness in commodity prices isn’t surprising. CNBC: “This happened before in 2008, when Lehman and AIG went bankrupt, they were both huge in commodities and everybody had to sell,” he said.

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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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