Commodity prices including that of crude, agri commodities, steel, aluminium have taken off over the last week or two. Jim Rogers, global investor, chairman of Beeland Interests Inc. spoke with ET Now on what he believes are going to be the trends that shape up the world as we grow out of the pandemic.
Jim tells us that crude prices will continue to rise as known reserves are on the decline. He believes there will be corrections along the way but the trajectory is upwards. He continues to be bullish on all of the energy and says that while they have run up in strong fashion, once they cool, it will offer an opportunity for investors to buy.
Among other commodities, he believes copper to be an excellent opportunity especially given that EVs use 3 to 4 times more copper and supply problems continue. He believes that currency printing has not helped commodities and will further fuel the rally for all commodities going forward.
On the inflation front, he criticises central bankers blaming them for the manner in which they have printed currency over the last couple of years and saying that entrenched inflation is going to be the reality. On that front, he believes commodities will benefit in a big way since consumption push coupled with inflationary conditions should push prices higher. In this regard, he says he is not worried about increasing rates and in fact believes that central bankers are scared. He believes bonds are overvalued and yields are the lowest they have ever been.
Among other commodities, he recommends silver but is quick to caution that prices have run up quickly. His hypothesis, over the longer term though, is that silver and gold is the old school currency and will work very well in this age of unlimited money printing. He also recommends buying ETF and agri funds and believes that even agri commodities are going to be in short supply.
He says that the war will push prices of all commodities higher as has always been the case in every war. He also predicts that the markets will rise one last time before a big crash and that he will wait for the markets to rise so as to short the market and buy commodities at that time. He, however, emphasizes that an Investor must know what he is doing and must not invest in assets he does not fully understand.
