Sell Bonds, Buy Precious Metals, Rice as 'Refuge,' Rogers Says
2010-07-07 10:49:06.466 GMT
By Ranjeetha Pakiam
July 7 (Bloomberg) -- Investors should sell bonds and buy
commodities like silver and rice as a "refuge" as the world
economy may continue having problems, Jim Rogers, chairman of
Rogers Holdings said.
"Bonds are not a good place to invest in," Rogers said at
a conference in Kuala Lumpur today. "You should own commodities
because that's your only refuge" whether it's silver or rice,
said Rogers, who predicted the start of the global commodities
rally in 1999.
Gold has gained 8.3 percent this year, leading advances in
precious metals, as investors seek haven assets to protect their
wealth amid concern the global economic recovery will falter.
Still, commodities overall capped their worst quarter in more
than a year on investors' concern that slower growth from China
to the U.S. will sap demand.
The best place to be is in commodities and other natural
resources, including precious metals like silver, platinum and
palladium, said Rogers, who co-founded the Quantum Hedge Fund in
1970. Commodities are good to buy as supply shortages are
already developing, the Singapore-based investor said.
Gold prices will rise to more than $2,000 per ounce, said
Rogers, without giving a timeframe. Bullion for immediate
delivery declined 0.4 percent at $1,187.85 an ounce at 6:34 p.m.
in Singapore. It reached a record $1,265.30 on June 21.
'Straight Up'
"I do own gold," he said. "Gold has been extremely
strong of late, but I'm not rushing out to buy gold. I don't
like to buy things that have been going straight up."
While gold has been trading at all-time highs, silver
remains 60 to 70 percent below its peak and is a better
investment, he said. Silver reached an all-time high of $50.35
in New York in 1980.
Silver for immediate delivery fell 1 percent to $17.6413 an
ounce at 6:22 p.m. Platinum dropped 0.6 percent to $1,507.68 and
palladium declined 1.2 percent to $433.35.
Still, agricultural commodities are better than metals as
prices are "very depressed," he said, pointing to sugar which
is 75 percent below its all-time high in 1974. Raw sugar for
October delivery slid 1.2 percent to 16.49 cents a pound on ICE
Futures U.S. in New York. It reached a record of 66 cents in
November 1974.
"Not many things are 75 percent cheaper that 36 years ago,
but that's true of sugar," Rogers said. "Agriculture
commodities are desperately cheap compared to 20, 30, 40 years
ago."
Rice futures on June 30 touched $9.55, the lowest price
since October, 2006, on rising production and declining demand.
The contract for September delivery gained 0.7 percent to $9.935
per 100 pounds on the Chicago Board of Trade at 6:15 p.m. in
Shanghai.
For Related News and Information:
--Editors: Barry Porter, Richard Dobson.
To contact the reporter responsible for this story:
Ranjeetha Pakiam in Kuala Lumpur at +603-2302-7856 or
rpakiam@bloomberg.net
To contact the editor responsible for this story:
Richard Dobson in Shanghai at +86-21-6104-7025 or
rdobson4@bloomberg.net
2010-07-07 10:49:06.466 GMT
By Ranjeetha Pakiam
July 7 (Bloomberg) -- Investors should sell bonds and buy
commodities like silver and rice as a "refuge" as the world
economy may continue having problems, Jim Rogers, chairman of
Rogers Holdings said.
"Bonds are not a good place to invest in," Rogers said at
a conference in Kuala Lumpur today. "You should own commodities
because that's your only refuge" whether it's silver or rice,
said Rogers, who predicted the start of the global commodities
rally in 1999.
Gold has gained 8.3 percent this year, leading advances in
precious metals, as investors seek haven assets to protect their
wealth amid concern the global economic recovery will falter.
Still, commodities overall capped their worst quarter in more
than a year on investors' concern that slower growth from China
to the U.S. will sap demand.
The best place to be is in commodities and other natural
resources, including precious metals like silver, platinum and
palladium, said Rogers, who co-founded the Quantum Hedge Fund in
1970. Commodities are good to buy as supply shortages are
already developing, the Singapore-based investor said.
Gold prices will rise to more than $2,000 per ounce, said
Rogers, without giving a timeframe. Bullion for immediate
delivery declined 0.4 percent at $1,187.85 an ounce at 6:34 p.m.
in Singapore. It reached a record $1,265.30 on June 21.
'Straight Up'
"I do own gold," he said. "Gold has been extremely
strong of late, but I'm not rushing out to buy gold. I don't
like to buy things that have been going straight up."
While gold has been trading at all-time highs, silver
remains 60 to 70 percent below its peak and is a better
investment, he said. Silver reached an all-time high of $50.35
in New York in 1980.
Silver for immediate delivery fell 1 percent to $17.6413 an
ounce at 6:22 p.m. Platinum dropped 0.6 percent to $1,507.68 and
palladium declined 1.2 percent to $433.35.
Still, agricultural commodities are better than metals as
prices are "very depressed," he said, pointing to sugar which
is 75 percent below its all-time high in 1974. Raw sugar for
October delivery slid 1.2 percent to 16.49 cents a pound on ICE
Futures U.S. in New York. It reached a record of 66 cents in
November 1974.
"Not many things are 75 percent cheaper that 36 years ago,
but that's true of sugar," Rogers said. "Agriculture
commodities are desperately cheap compared to 20, 30, 40 years
ago."
Rice futures on June 30 touched $9.55, the lowest price
since October, 2006, on rising production and declining demand.
The contract for September delivery gained 0.7 percent to $9.935
per 100 pounds on the Chicago Board of Trade at 6:15 p.m. in
Shanghai.
For Related News and Information:
--Editors: Barry Porter, Richard Dobson.
To contact the reporter responsible for this story:
Ranjeetha Pakiam in Kuala Lumpur at +603-2302-7856 or
rpakiam@bloomberg.net
To contact the editor responsible for this story:
Richard Dobson in Shanghai at +86-21-6104-7025 or
rdobson4@bloomberg.net
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