Thursday, December 08, 2005
An Interview With Jim Rogers
The Business Day site has this interview with Jim Rogers. "LINDSAY WILLIAMS: Jim, can we maybe start..the precious metals, and base metals. What do you think the prospects are for this particular complex?"
"JIM ROGERS: You haven’t seen anything yet. Copper needs to correct, but the shortages of raw materials is going to get much worse over the next 10 to 15 years, and we’re going to have an unbelievable bull market. There’s been no major oil discovery anywhere in the world in over 35 years. Most metals companies have not been exploring for metals, and certainly not opening many new mines, except for gold that’s continued to expand."
"Gold is certainly going to participate, but I think you’re going to make more money in in sugar or coffee than you will in gold. In previous bull markets of any asset class, everything makes a new all-time high. That means gold has to go to at least $900, and silver has to go much higher if history is any guide to how bull markets have always worked."
"LINDSAY WILLIAMS: Is there any problem perhaps with the US dollar when it comes to the dollar price of commodities, we’ve seen the gold, platinum, silver and copper prices and everything else dislocating from the strength of the US dollar, does that mean that we should ignore the dollar’s strength and just buy commodities?"
"JIM ROGERS: The dollar is fundamentally very flawed, and it’s going to be a serious problem in the next five or 10 years, it’s having a big rally in 2005 for some technical reasons. It was beaten down in 2002, 2003 and 2004 and there’s a special tax incentive for American companies to bring their money back into the US this year, but that incentive ends this year, and so you will see the dollar resume it’s decline, and that is bullish for commodities, but that’s not the main reason commodities will be going up. The main reason is supply and demand are out of whack, but a weak currency like the dollar is going to help commodities."
"JIM ROGERS: You haven’t seen anything yet. Copper needs to correct, but the shortages of raw materials is going to get much worse over the next 10 to 15 years, and we’re going to have an unbelievable bull market. There’s been no major oil discovery anywhere in the world in over 35 years. Most metals companies have not been exploring for metals, and certainly not opening many new mines, except for gold that’s continued to expand."
"Gold is certainly going to participate, but I think you’re going to make more money in in sugar or coffee than you will in gold. In previous bull markets of any asset class, everything makes a new all-time high. That means gold has to go to at least $900, and silver has to go much higher if history is any guide to how bull markets have always worked."
"LINDSAY WILLIAMS: Is there any problem perhaps with the US dollar when it comes to the dollar price of commodities, we’ve seen the gold, platinum, silver and copper prices and everything else dislocating from the strength of the US dollar, does that mean that we should ignore the dollar’s strength and just buy commodities?"
"JIM ROGERS: The dollar is fundamentally very flawed, and it’s going to be a serious problem in the next five or 10 years, it’s having a big rally in 2005 for some technical reasons. It was beaten down in 2002, 2003 and 2004 and there’s a special tax incentive for American companies to bring their money back into the US this year, but that incentive ends this year, and so you will see the dollar resume it’s decline, and that is bullish for commodities, but that’s not the main reason commodities will be going up. The main reason is supply and demand are out of whack, but a weak currency like the dollar is going to help commodities."
# posted by Ben Jones @ 6:52 AM 
