JIM ROGERS - If GOLD goes BELOW $1,000 I will BUY. GOLD in 1st Year Decline in 13 Years Savvy commodities analysts and participants including Jim Rogers have seen long-running Bull Markets stumble, falter and end, and some not so savvy folks try to predict their end, mostly missing the call. Instead of ending, the Bull Markets turned into a frenzy that finished in a bubble. I havent seen the frenzy yet, say Mr. Rogers, who correctly predicted this Chinese-driven a commodities boom. Ive been around markets long enough to know that when everybodys on one side of the boat, its probably not the right side to be on. I dont see enough supply having come on stream in most commodities to end the Bull Market, Mr. Rogers says. Agriculture inventories are near historical lows because the world has consumed more than it grows for a decade now. Many minerals companies have canceled capital spending programs because they, too, have heard from Wall Street that the boom is over. Mr. Rogers likes raw Sugar and Nat Gas because their prices are depressed in here. While Sugar has been up the past few years, its still down 75% from its all-time high. Regarding Nat Gas, he notes, Many drillers have had to reduce their reserve estimates, and we are finding that production declines very quickly in shale Gas wells. When I see a company like Shell taking a $2-B write-down on its shale Gas assets, I take that seriously. Mr. Rogers believes were going to have huge problems with agriculture and food in the next decade. One way to take advantage of this problem would be to invest in farmland, agricultural commodity indexes and stocks of seed and fertilizer companies. Expecting the Bull Market in commodities to last, Mr. Rogers works in Singapore in order to be closer to China. China has been trying to slow its economy for quite some time now. Theyve had an inflation problem. Theyve had a real estate bubble. But I know . . . that something positive is going on in China and has been for a while. They are growing, they have a high savings rate, they have a high rate of investment, and they have huge international reserves, he says. The last time I bought Chinese stocks in a big way was November 2008. If and when there is a panic, I hope I am smart enough to buy again. My Chinese shares are not for sale. That does not apply to anything else I invest in, Mr. Rogers notes. China is the Key to supporting commodity prices, especially Gold. jim rogers gold oil gold bullion gold etf future trading fed silver market gold trading bull market buy sell gold business investor investment sell gold inheritance long term commodity war ww3 world war 3 sugar obama russia china invest in sugar farming silver etf futures england japan currency forex boom u.s. united states usa america usd 2013 2014 chinese rmb banking 829speedy Chinese demand for the precious Yellow metal has prevented Gold prices from falling. Its Gold imports have almost doubled this year, and the country is on track to become the largest, producer, consumer and importer of Gold, overtaking India as the #1 consumer. Investors should be aware that some big Gold holding may be reduced if the US Federal Reserve pares its economic stimulus effort (QE-3). If and when that happens, Chinese demand may not be able to support Gold prices further. demand from China is related to the fall in Golds price. Like the central bank purchases Chinas consumers have helped establish a higher floor but they will not on their own drive Gold back up on a sustained basis. Stay tuned... The Fed may just have delivered an early Christmas present to the financial markets. After the Fed announced it would not taper its asset purchases, as many investors had expected, financial markets rallied, from stocks to bonds and even gold. While the S&P 500 surged 1.2% to a record high yesterday, gold prices have soared 5% and are at $1,367 an ounce in early morning trading Thursday. In a statement following its meeting the Fed said it decided to await more evidence that [economic] progress will be sustained before adjusting the pace of purchases. Fed Chairman Ben Bernanke explained in a press conference, Conditions in the job market today still are far from what all of us would like to see, and the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and the labor market. Adventures on the Road and in the Markets. The reason: massive currency debasement around the world. Every major central bank in the world is printing a lot of money plus war, chaos, riots in the street, governments failing, says Rogers.
Posted on: Sat, 12 Oct 2013 02:38:08 +0000
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