“It’s coming again” warned commodity legend Jim Rogers earlier this week. When asked about the future of the U.S. economy Rogers had a pessimistic outlook, as he feels that the global financial landscape is simply too volatile to avoid another recession. And what’s more, Rogers thinks this next one will be worse than 2008. He cites the recessions in 2002 and 2008, stating that the 2008 recession was so much worse because of higher debts. Now, in 2012, debts are even higher, leading Rogers to believe that the coming recession will be even worse [for more commodity news and analysis subscribe to our free newsletter].
Just how high is our current debt? Economists project it will top $16 trillion by the end of the fiscal year, which would bring us to a debt-to-GDP ratio of over 100%. Rogers was quick to note, however, that the major problems likely won’t surface until 2013 and 2014, as this year is an election year, and Rogers feels that Obama will be forced to print money to get us through the election. His final plea to investors came in the form of a dismal warning: “if you are not worried about 2013, please — get worried“.
Buy Commodities!
Several weeks ago, Mr. Rogers went on the record stating that he feels that stocks and bonds are not the way to go, as a capital flight could send interest rates soaring and wreak havoc on our financial system. Instead, the hard assets guru put his money where his mouth is by stating that he owns gold, silver, and agriculture, as he feels that these assets have the most potential to either provide a positive return or preserve value in the coming years. He also noted that he feels that the U.S. dollar has strong potential for short term gains (as money flows out of the indebted European nations), but will eventually lose its status as the world currency and exhibit a similar fallout of the British pound sterling [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].
This advice comes at a time when gold has been faced with a number of hardships, as the precious metal had been rapidly losing value for the majority of the past month. Sitting at what seems to be a low, it seems that Rogers is suggesting to buy gold at its current price as he feels that the gold bubble won’t pop until the end of the decade. In light of this dire warning from one of history’s most respected investors, we outline several options for making an actionable play on the advice of Jim Rogers:
- Gold/Silver Bullion: Plain and simple, the safest way to own gold and silver is by physically holding the commodities. Note that this is also the most illiquid option, as selling large amounts of physical bullion can be a daunting task [see also Forget Gold, Why Your Portfolio Needs Silver].
- GLD/SLV: Your next two options for making a play on these precious metals will likely come from these physically-backed ETFs. GLD represents gold bullion with over $65 billion in assets while SLV holds silver bullion and is home to $8 billion in assets. These two options will be extremely liquid and allow for easy movement of positions.
- Market Vectors-Agribusiness ETF (MOO): This ETF will be a perfect play for those looking to take advantage of Rogers’ advice on agriculture. This fund provides exposure to publicly traded companies worldwide that derive at least 50% of their revenues from the business of agriculture, putting an equity spin on a commodity investment [see also Invest Like Jim Rogers With These Three Agriculture Stocks].
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Disclosure: No positions at time of writing.
[...] Domestic equities broadly got off to a strong start only to fall victim to profit taking pressures in the final hours of trading. Stimulus hopes and employment data paved the way for back-and-forth trading for major equity indexes on the home front; the Dow Jones Industrial Average managed to clinch a gain of 0.37% as the closing bell rang , while the Nasdaq and S&P 500 Index both finished the day with minor losses in red territory [see also Jim Rogers Says: Buy Commodities Now, Or You'll Hate Yourself Later]. [...]
[...] Back-and-forth trading dominated equity markets for most of yesterday as stimulus hopes collided with weekly jobless claims data. Fed Chairman Bernanke was reluctant to hint at any more stimulus until a further review of the economic recovery has been conducted, which inevitably paved the way for profit taking. During the first half of the trading day however, investors on Wall Street cheered on the latest employment report which showed 377,000 people filing for unemployment benefits last week, which beat analyst estimates of 380,000 as well as the previous reading of 389,000 [see also Jim Rogers Says: Buy Commodities Now Or You'll Hate Yourself Later]. [...]
[...] Equity markets appear to have regained their footing after enduring a rather painful correction over the past few weeks. Confidence has returned to the markets thanks to growing hopes that the Fed will offer up further stimulus this month, although looming Euro zone debt drama has proven that it can resurface in a moment’s notice. Amidst the flurry of trading activity this week, Zacks and Direxion have filed plans with the SEC to launch several new ETFs [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] suggest you make investment decisions based solely on the words or deeds of a central banker [see: Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. This sustained buying by central banks however is no longer a “scoop” for Web [...]
[...] UNG was able to gain nearly 15% for Thursday’s trading session, as traders set the fund on fire with abnormally high volumes to match the abnormally high gains. UNG has been known to move roughly 3% or 4% in one day, but a 15% movement is largely unheard of. With a number of investors betting against this ultra-popular fund, today’s gains come as a disappointment as well as a mystery to many. UNG’s big day started off with the weekly EIA Natural Gas Inventory Report, which is generally a large mover for the fund. Today’s report was expected to show NG stockpiles of 75 billion cubic feet (bcf), but the actual report came in at 67 bcf, far lower than anyone expected [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Another week and another frenzy of trading on Wall Street. The past five sessions have been defined by more eurozone woes as Spain officially received a 100 billion euro bailout over the weekend. While the news came as a relief to some, others simply saw it as postponing the inevitable. As one British official pointed out, 20% of the bailout is financed by Italy, who is lending at 3%. But in order to finance the bailout, Italy must borrow at a rate of approximately 7%, setting up a potentially disastrous situation. Looking to the week ahead, a key Fed meeting seems to hold the fate of markets in its hands, as many are hoping for news of QE3 [see also Jim Rogers Says: Buy Commodities Now, Or You'll Hate Yourself Later]. [...]
[...] Trading platinum has become a lucrative opportunity for investors as this precious metal has quickly become one of the most popular assets in the world. With its heavy use in the industrial world as well as its relatively volatile supply chain, platinum makes for an ideal trading instrument (although it can certainly be used as a part of a long-term strategy) for those who can stomach futures exchanges. One of the best ways to stay on top of platinum markets and trends is to utilize Twitter. It may be difficult for some to view Twitter as a viable source for trading info, but there are a number of professionals who aim their tweets at keeping their followers in-the-know. Below, we outline seven must-follow platinum Tweeple to give you the best information for your commodity trades [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Enter the American Gold Eagle coin. For small to medium sized investors, these golden discs will offer the best means of adding physical gold to your net worth. Note that it is possible to buy bars and much larger gold deposits, but these come with a hefty price tag that is often above the heads of your average Joe. Instead, investors around the nation have embraced these ultra-popular coins as their main outlet for gold exposure [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] First things first, those looking to invest in futures will need to decide which exchanges they would like to utilize. Below we outline three of the most popular options in the world for trading natural gas futures. [...]
[...] Investor interest in commodities has surged in recent years, the result of both a prolonged rally in natural resource prices and the development of new vehicles that facilitate access to this asset class. Specifically, the launch of a robust lineup of exchange-traded products that utilize both physical commodities and commodity futures contracts has brought commodities to the masses; they’re no longer reserved for the largest and most sophisticated investors [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] To be sure, fiat-based fixed income securities have been “the” investment of the past generation. Many believe this megatrend has run its course, but it hasn’t reversed itself yet on a large scale. The strategy of investing the majority of a portfolio in fiat-based fixed income products will of course keep working–until it stops working! [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] With the first half of the year officially in the books, investors have plenty of data and developments in the commodity world to talk about. With natural gas jolting back and forth and speculators calling tops and bottoms in crude oil and gold, it has certainly been a busy six months for commodity traders. One of the biggest sticking points for commodities was the speculation of QE3, which was eventually announced in the form of “Operation Twist”, which will likely shape prices for the latter half of the year. But when it comes to some of the best and worst performers from that time period, some of the results may surprise you. Below, we outline the three best and three worst commodity performances from the first half of 2012 [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] The past few months have put gold in the spotlight, and for good reason. The metal has shot up from below $1,000 per ounce in 2009, all the way to its current levels above $1,500. As markets around the world continue to falter, gold has seen a massive amount of inflows as it has long been the popular safe haven investment. Now that the Swiss franc is pegged to the euro, many consider gold to be the last remaining safe haven, as the once strong franc will now be dictated by the movements of the drowning euro. But with gold seeing its price nearly triple in the last several years, many investors are formulating strong opinions as to whether or not the precious metal is overvalued and due for a huge correction in the near term [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] In the world of commodity investing gurus, few can match the track record or fame of Jim Rogers. The investment legend is probably best known for his work with George Soros in creating the Quantum fund, but Rogers has been more active in the commodity space as of late with the creation of several indexes and a book on the subject as well. Lately, Jim Rogers has been on the precious metal bandwagon, pushing many investors to buy up these products to defend against further dollar weakness and fiat currency debasement by central bankers around the world. Yet, with gold hitting fresh highs on a seemingly weekly basis, Rogers has begun to advocate for investors to look to other corners of the investing world for gains in the future [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Commodity investing has been extremely popular in recent years as investors have discovered the benefits that these investments can offer for an individual portfolio. Exposure to commodities offers benefits like low correlation, inflation hedges, and also heavy exposure to some of the world’s fastest growing markets. But there is still something of a disconnect between income investors and commodities, as these investments are typically seen as growth plays or simply left for active traders. But those who overlook commodity stocks with even mediocre yields could be missing out [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Inflation is one of the most talked about phenomenons of the financial and economical world. Central banks have spent years trying to push and pull at inflation rates, much to the dismay of a number of analysts who feel that it should simply run its course. From hyperinflationary environments in Zimbabwe, where banks were issued $50 million bills and billionaires could go hungry, to more tame examples like the U.S. in the 1970s (though this was still a pretty serious bout of inflation). Still, for all of the attention that inflation receives, its sister environment, deflation, gets the short end of the stick [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Commodity investing has been around for decades, but it was only recently that their popularity has spread to the general public. It is now generally recommended that investors set aside anywhere from 5% to 10% of their capital for a commodity allocation, as these hard assets generally offer uncorrelated returns essential to diversification. While there are a number of funds and stocks that can be used to gain exposure to commodities, futures investing has long been the most popular and direct means of establishing a position [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Commodity investing has been around for decades, but it was only recently that their popularity has spread to the general public. It is now generally recommended that investors set aside anywhere from 5% to 10% of their capital for a commodity allocation, as these hard assets generally offer uncorrelated returns essential to diversification. While many investors utilize stocks, ETFs, and futures to obtain their commodity exposure, options contracts can often be a better alternative to not only your commodity holdings, but for the remainder of your portfolio as well [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] As one of the most popular industrial metals in the world, copper has cemented its place into the commodity world as a prime trading instrument for many. The metal is used in everything from circuit boards and plumbing, to brakes and even makes an appearance in the Statue of Liberty (copper in fact makes up 80 tons of Lady Liberty). For those looking to dabble in copper futures, there are a number of options available, leaving some to wonder where to begin. Below, we outline strategies for trading copper futures as well as a few other products that offer similar exposure [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] When it comes to commodity trading, few words are more serious in an investor’s vocabulary than contango. This phenomenon has been known to burn a hole in positions and cause problems for those who were not amply prepared. By definition, contango is the process whereby near month futures are cheaper than those expiring further into the future, creating an upward sloping curve for future prices over time. The reason behind this is most often attributed to storage costs; storing barrels of oil or bushels of corn isn’t cheap and the costs have to be passed down the line. Below, we outline three commodities currently exhibiting contango to help keep investors up to date on the current futures environment [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
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[...] In recent years, gold miner ETFs have become some of the most popular investment tools, offering “indirect” exposure to gold prices without the headache of futures trading or physically holding the precious metal. Considering today’s rocky environment, gold mining stocks can be a more appealing option than investing in physical bullion since these securities tend to generate meaningful cash flows. But like every other company, the profitability of gold miners depends on the price of the products they are selling, meaning that spot gold prices are a major factor in the cash flows of the underlying company. And with the evolution of the ETF industry, there are now a number of products that allow investors to add gold miner exposure to their portfolio with ease. Below, we outline the three most popular gold miner ETFs and which one will fit your investment objectives [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] In the past 12 years, global consumption has increased at an average of 2.5% annually. In 2011, there were nearly 131 million bags of coffee exported, weighing over 132 pounds each. However, demand outpaced supply with consumption of coffee at nearly 138 million bags [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] The last two years have seen a tremendous surge in the number of exchange-traded products available to U.S. investors. While there have been several “copycat” products to hit the market, the vast majority of new fund launches have focuses first-to-market ETFs unlike anything already out there. Skeptics have been saying for a while that all the good ideas are taken, but these theories have been repeatedly shot down as new ETFs have burst on to the scene and rapidly accumulated assets [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
Hmmm great information from the oracle
[...] Another relatively impervious commodity, tobacco certainly has its grips in the world. In fact, some people use tobacco more during tough times to help get them through. In good times and in bad, tobacco investments tend to perform relatively well compared to overall markets. One favorite investment of many comes from Phillip Morris International (PM), as they have a gargantuan market share as well as an enticing dividend yield [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Sugar is another of the so-called breakfast commodities, along with coffee, cocoa and orange juice. Like the others, it also has a rich history. It is thought to have been first used by humans in Polynesia many centuries ago, but was not discovered by Europeans until the 11th century thanks to the Crusades. It was first brought to the Americas by Columbus in 1493 and soon thereafter it was found that the sugar cane plant grew extremely well in tropical environments [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] years to near all time highs. In fact, the price of gold has surged from about $800/oz. in 2008 to their current level, nearly two times that mark. Given the continuation of easy money policies by the Fed and other [...]
[...] Each year farmers adjust the amount of each crop they will plant in their fields. The USDA predicted this year to be a larger than normal corn crop due to the increasing demand of corn for use in the manufacture of ethanol. Beans and wheat are not only in shorter supply because of a smaller crop but when corn prices rise, farmers use more of these crops to feed their livestock. This, along with a smaller yield due to the drought, will cause other crops to have some degree of correlation to the price of corn [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Copper’s numerous applications make the commodity a potentially lucrative play on both the manufacturing and industrial goods sectors. And with the rapid development of the exchange-traded fund industry, investors now have several ways to gain access to the arguably most useful industrial metal. Below, we outline the three most popular copper ETFs and which one will fit your investment objectives [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] One thing that often is overlooked by investors are the tax ramifications of physical gold investing [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Since lead deposits can be found around the globe and extraction of the metal is relatively easy, its market and global demand has tremendously risen over the years. And thanks to the development of the exchange-traded fund industry, investors now have several ways to gain access to this popular industrial commodity. Below, we outline the two most popular lead ETFs and which one will fit your investment objectives [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] his mind, whether he is right or wrong. Some of his previous statements included the fact that anyone who doesn’t invest in commodities is a fool, that gold will surely drop 20% from its [...]
[...] his mind, whether he is right or wrong. Some of his previous statements included the fact that anyone who doesn’t invest in commodities is a fool, that gold will surely drop 20% from its [...]
[...] his mind, whether he is right or wrong. Some of his previous statements included the fact that anyone who doesn’t invest in commodities is a fool, that gold will surely drop 20% from its [...]
[...] it seems like a matter of when, and not if, for another hefty round of money printing. Luckily for commodity traders, this represents a great opportunity to cash in on a market trend [for more commodity news [...]
[...] agricultural investments, sugar is known to exhibit significant volatility, making the commodity a lucrative investment tool for those looking for a sweet return. Additionally, sugar has been shown to maintain a fairly low [...]
[...] agricultural investments, sugar is known to exhibit significant volatility, making the commodity a lucrative investment tool for those looking for a sweet return. Additionally, sugar has been shown to maintain a fairly low [...]
[...] lowest point we’ve observed in a century of data. There is no way to view this as something other than a warning, but it’s also a warning that I don’t want to overstate. This is an extreme data point, but [...]
[...] agricultural investments, sugar is known to exhibit significant volatility, making the commodity a lucrative investment tool for those looking for a sweet return. Additionally, sugar has been shown to maintain a fairly low [...]
[...] operates in the U.S. and Latin America, providing energy for millions of homes each year. With legendary commodity investor Jim Rogers sitting in the CEO’s chair, it’s no wonder that Duke has become such a successful firm. [...]
[...] “The idea that you prop up people who are bankrupt is what Japan did. Japan had two lost decades, America will have a few lost decades” said Rogers. That kind of bearishness from a world-renown expert has some investors worrying, as if they weren’t already on the edge of their seats. Luckily, Rogers has been very vocal about which investments he sees performing well in the coming years, allowing those who follow his claims to protect themselves from the possibility of another lost decade [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] is by far the most popular cocoa ETN available on the market, offering investors exposure to the sweet commodity by investing in a single futures contract on cocoa. Since its debut in 2008, NIB has grown in [...]
[...] “The idea that you prop up people who are bankrupt is what Japan did. Japan had two lost decades, America will have a few lost decades” said Rogers. That kind of bearishness from a world-renown expert has some investors worrying, as if they weren’t already on the edge of their seats. Luckily, Rogers has been very vocal about which investments he sees performing well in the coming years, allowing those who follow his claims to protect themselves from the possibility of another lost decade [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later | Commodity HQ. Tags: advice, gold, jim rogers, jim rogers [...]
[...] to $45,000, or 4.5% of your original investment. Saving yourself a quick 4.5% could have been as simple as buying IAU over [...]
[...] Rogers has long been a commodities bull who is not afraid to share his opinions with the rest of the world. While he admits that he is not one to endorse “top picks”, [...]
[...] Rogers has long been a commodities bull who is not afraid to share his opinions with the rest of the world. While he admits that he is not one to endorse “top picks”, he does [...]
[...] Rogers has long been one of the most influential names in the commodity world, as his insights and strategies have been well documented. His name is [...]
[...] Rogers has long been one of the most influential names in the commodity world, as his insights and strategies have been well documented. His name is [...]
[...] Rogers has long been one of the most influential names in the commodity world, as his insights and strategies have been well documented. His name is [...]
[...] Alabama native, Rogers began his entrepreneurial career early, collecting soda bottles at the ripe old age of five. He [...]
[...] that’s just me. Until then, I’m going to ride the gold and silver bull run to its end. Jim Rogers is riding the train too and as far as I can tell, he’s still bullish on precious metals since [...]
Farm land is really the number one commodity during recessions. Prices of food is going to be higher so if you can produce your own food that’s gonna be the new gold. I backup my computer every night for this recession that’s about to come in less than 10 years.
[...] Rogers has long been one of the most influential names in the commodity world and he’s never been shy about vocalizing his love of precious metals. [...]
[...] Trading futures contracts is widely considered the most direct means of obtaining exposure to your favorite commodity. Among the most popular futures are gold contracts, as investors have adopted these securities for a number of reasons. First and foremost, gold futures and options are highly liquid as they are among the most actively traded futures in the world. Gold’s appeal is also from the fact that it is a popular speculative instrument used to make bets on the overall economy and recovery efforts. Trading gold futures, however, may be a bit difficult given the wide variety of choices that investors have. Below, we outline the different kinds of gold futures to help you find the most appropriate option for you [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]
[...] Crude oil trading is one of the most prominent aspects of the commodity industry. With this fossil fuel having such a deep impact on our everyday lives, it’s no wonder why it is among the most heavily traded commodities in the world. Though most people think of West Texas Intermediate (WTI) crude when the hear the word “oil”, savvy traders also know that Brent crude has an established place in the investing world, and has vastly outperformed its WTI counterpart. For those looking to add exposure of this light, sweet crude to their portfolio, we outline the different types of Brent crude futures available on the market, and which ones will be most appropriate for your investment objectives [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. [...]