Friday, October 22, 2010

Jim Rogers Says Commodities Will be Profitable Investment for Years

In an interview with Bloomberg Television, Jim Rogers again reiterated his bullish outlook for commodities, saying Asia will continue to purchase commodities for decades.

Even if the Federal Reserve weren't to print more money (which it will), the underlying fundamentals of commodities would drive the price up. With the Fed sure to inflate, or implement another round of they're now calling quantitative easing, they're just going to make the process happen quicker in U.S. dollar terms.

As Rogers has said in the past, “If the world economy gets better, the prices of commodities will go up because there are shortages developing. We already see shortages developing. You mentioned rare earths, but there are others. If the world economy doesn’t get better, I still want to own commodities because they’re [Federal Reserve] going to print money.”

So whether it's demand or faulty economic policies, the commodity sector will continue to thrive for years to come.

Of course we need to watch for new price highs and be diligent in following the sector, but overall, commodities going to boom for some time.

As for gold, Rogers has said in the past he sees it going as high as $2,000 an ounce, although he has no idea when that may happen.

For now, he's reluctant to acquire more gold because it stands close to historical highs. He's looking to buy more on corrections.

Similar to investing on a monthly basis with stocks, another commodity bull, Marc Faber, recommends investors acquire gold in the same way, acquiring it consistently over a period of time to get a decent average price for it.

Two of Rogers' favorite commodity plays at this time are rice and silver, as they haven't yet reached new highs.

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