Jim Rogers: Commodity Fundamentals are Improving – February 10, 2009

by | Feb 11, 2009 | Jim Rogers

Do you LOVE America?


    Jim Rogers is interview on CNBC’s Squak Box.

    Jim Rogers discusses UBS and the banking sector:

    I wouldn’t buy any stock if I were you. I’m still short the investment banks in the United States. Some of them may survive, but why bother.

    One reason the banking system is frozen up is because nobody trusts anybody.

    On rapid decline of commodity prices in 2008:

    We’ve had a period of forced liquidation of everything. It doesn’tmatter about the fundamentals. You’re getting margin calls, you’re getting redepmtions, you’re losing your credit line. So you have a forced liquidation of everything. Even the US Dollar is going up because all the shorts are being forced to cover.

    But the fundamentals of commodities are improving during all of this. Farmers cannot even get loans for ferilizer right now. Nobody is getting loans to open mines.

    On the US dollar defying gravity:

    I expected a rally last year in the dollar. I thought I would get out of all my dollars last year on the rally – i didn’t because it has been much stronger than i expected. there has been a massive forced liquidation. There have been huge short positions in the dollar and everybody is having to cover. I havenot sold the rest of my dollars yet.

    where oil is  heading:

    The oil decline [production] has been going for some time and its going to get worse. what’s going to happen to oil this year? again, i am not a market timer or trader. I know that the IEA recently came out with a study that the world’s oil reserves are declining at a rate of 6.7% per year and that’s after discoveries. So, it doesn’t take much, in 15 years there won’t be any oil available at any price.

    On gold:

    And as far as gold is concerned — i bought some more gold today. If gold goes down, I’ll buy more. If it goes up, I’ll buy more.

    I’m buying gold because i do expect it to be much higher over the next decade.

    I do know that we’ve never had a period in world history that we’ve never had a central bank print money as fast as they can.

    If the IMF sells their gold then gold could go down a fair amount. But that would be the bottom. I hope the IMF does sell their gold because we would get a low price for gold and then we could get rid of the IMF because then noone else is going to give them any money and they would have to dissolve.

    Jim Rogers on CNBC Part 1 of 2:

    Jim Rogers on CNBC Part 2 of 2:


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