Written by Nicholas Larkin & Chanyaporn Chanjaroen
Thursday, 19 November 2009 11:39
LONDON: Commodities are the “best place to be” whether the global economy improves or deteriorates, as energy, metals are “real assets”, said investor Jim Rogers.
Low food inventories and ageing oil fields, as well as a growing population, mainly in Asia, will continue to boost commodity prices, the chairman of Singapore-based Rogers Holdings said yesterday in a conference call hosted by ETF Securities Ltd.
“If the world economy does not get better, governments are going to print even more money,” said Rogers, who predicted the start of a global commodities rally in 1999. “A lot of money printing will lead to higher prices.”
The Rogers International Commodity Index, founded by the investor in 1998, has returned 27% this year as lead, copper, gasoline more than doubled. US Treasuries lost 1.92% for investors this year, according to Merrill Lynch data. The S&P 500 Index has advanced 23%.
The US dollar’s 7.8% decline against a basket of six major currencies contributed to the raw-materials rally.Rogers. Photo by Bloomberg
“The US dollar is a terribly flawed currency,” Rogers said, citing increasing debts by the world’s largest economy. “Many people are figuring out ways to move away from the US dollar.” — Bloomberg
