Commodity traders, get ready for the ride of your life says Jim Rogers.
There’s no way supply for many commodities can keep up with the massive demand coming over the next two decades. Thus the long-term trend will be your friend.
In Mr. Rogers view is that if there’s a bubble right now, it’s not in commodities, it’s in treasuries.
So, again, can we please get this man in a room with Bill Gross?
Gold bugs: He sees your metal hitting $2,300.
Bloomberg: Agricultural commodities are among his favourites, because demand for food, including grain and sugar, is rising in countries such as India and China. Rogers said cotton may gain as farmers produce less fibre in favour of growing biofuel crops such as corn.
“I own some cotton,” Rogers said. “I own some sugar,” he said. “Sugar will go much, much higher over the course of the bull market.”
Sugar futures in New York have surged 91 per cent this year and touched 25.43 cents a pound on Sept. 30, the highest price since February 1981, partly fuelled by rising oil prices. Ethanol is made from sugar cane in Brazil.
“Oil could reach between $150 and $200 a barrel,” because known reserves of crude are declining, Rogers said. He said international relations, particularly between the U.S. and Iran, will help guide prices.
“Natural gas is very cheap,” he said in the interview between sessions at an ETF Securities Ltd. investor conference.
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