Posted on 01/18/2010 8:10:50 PM PST by Comrade Brother Abu Bubba
Legendary investor Jim Rogers remains bullish on commodities and says the world will soon face food shortages.
"The fundamentals (for agriculture) have gotten better," he says.
"The inventories are now at the lowest they've been in decades, not in years.”
And that trend is just intensifying, Rogers tells CNBC.
“ Things are getting worse. Many farmers can’t get loans to buy fertilizer now, even though we have big shortages developing "
And what will be the end result of this dynamic?
"Sometime in the next few years we're going to have very serious shortages of food everywhere in the world, and prices are going to go through the roof," Rogers said.
Agriculture is his favorite sector in the commodity space, but Rogers likes other commodities as well.
Take oil, for example.
“Over the next decade or so, oil is going to go much higher, because known reserves of oil are declining at a very rapid rate,” Rogers said.
He also favors gold for the long term, saying that if it drops $200 an ounce, he’ll buy more.
But if you’re looking for precious metals to acquire now, Rogers recommends silver or palladium, because they haven’t soared as high as gold.
Many experts share Rogers’ bullishness on commodities.
Goldman Sachs, for example, sees the S&P GSCI Enhanced Total Return Index appreciating 17.5 percent this year.
“Demand is growing on a global basis,” Peter Sorrentino, a money manager at Huntington Asset Advisors, told Bloomberg.
Meat prices might rise until finally the unemployed decide that it’s better to raise cows or pigs instead of surfing the internet and watching TV.
They might even...gasp...move.
Until meat prices reach that point, however, the unemployed are just going to idly kvetch about “high food costs” which is their way of telling the world that they don’t have enough money.
Which is to say, food prices aren’t high enough to entice people to change (yet).
Everything is *always* too expensive for the broke-jokes of the world.
To them, costs are always “going up” because it is human nature to blame rising costs instead of blaming yourself for having so little income.
government is not on their side
but they can apply for subsidies and stuff if they grow, don’t grow, grow too much or too little...
In 2012 - 2013, Oil will be selling for $200-300/Bbls." - Comrade Brother Abu Bubba (AKA the singe-most ignorant poster on the entire global internet)
It's 2014 and oil has now fallen...that means "gone down" for you since you have no IQ to grasp the world.
Tonight oil is $68.50 going into December.
On the entire Internet over the past 4+ years, not a single person out of Billions online has *ever* or will ever agree with you.
You, Comrade Brother Abu Bubba, are the dumbest poster on the internet.
Out of billions of people online, you are the stupidest person.
After being in the oil industry for 35 years, I can safely say that no one can predict the price of oil with any accuracy past 3 months. You might as well throw the dice for any timeframe past that.
Oil down to $52.69 today in 2015...
U.S. oil production has now risen above 13 million barrels per day, and the Alarmists are all sad...
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