Protect Yourself From Debased Currencies, Jim Rogers Style

Last week, Jim Rogers appeared on CNBC to talk about some of the issues in today’s economy. Sporting his typical Orville Redenbacher-like bowtie and suit, Mr. Rogers had plenty to say about recent actions from the Fed and what impacts it will have on our future. One of the main issues that he covered was the devaluing of the U.S. dollar, which has been a hot topic since the quantitative easing programs began in 2008 and our national debt pile quickly surged to nearly $16 trillion.

But as always, Rogers has a solution for those looking to protect themselves against a manipulated and flailing dollar. “The way you protect yourself when governments print money and debase the currency is you own real things” said Rogers. He went on to clarify that real things in his mind included the likes of gold, silver, rice, wheat, oil, and natural gas among other commodities. As always, he left a soft spot for agricultural assets, claiming that the “fundamentals are unbelievably good” [for more commodity news and updates subscribe to our free newsletter].

In the interview, Rogers also reiterated his point that he currently likes silver over gold, though for the time being he is buying neither, as he has previously predicted a 10%-20% drop in bullion prices in the short-term future. Finally, Rogers urged viewers that further money printing and currency debasement was on its way, and that investors should take preliminary actions to protect themselves against it. Short of becoming a farmer, which Rogers actually does suggest, we outline several ways to make a play on the advice of this legendary investor.

  • Rogers Intl Commodity Agric ETN (RJA): It is certainly not the most liquid agricultural commodity fund in the space (DBA takes the cake by a massive margin), but being that it tracks the Rogers International Commodity Index, it seems to be the most appropriate choice given the circumstances. The fund invests in 20 different agricultural commodity futures and is up over 11% this year [see also 50 Ways To Invest In Agriculture].
  • iShares Silver Trust (SLV): A no-brainer given that Rogers has specifically touted this fund in the past as well as his preference for silver in the current environment. SLV is dangerously close to breaking through the $10 billion mark for assets and trades more than 9.4 million times per day.
  • SPDR Gold Trust (GLD): The commodity king and the second largest ETF in the world has been an investor favorite for a number of years, despite controversy surrounding the nature of its holdings. You can use GLD both as a trading instrument and a long-term hold. Note that the fund will be especially volatile today given Bernanke’s speech at Jackson Hole.
  • Market Vectors Emerging Markets Local Currency Bond ETF (EMLC): While Rogers certainly never mentioned anything about emerging markets bonds, this fund will present a strong way to play a dollar debasement. This fund invests in bonds from developing economies all around the world by using the local currency, giving you access to monies like the Malaysian ringgit, Chinese renminbi, and the Mexican peso among others.

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Disclosure: No positions at time of writing.

This entry was posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, Energy, Gold, Natural Gas, Precious Metals, Silver, WTI and tagged , , , . Bookmark the permalink.

Commodity HQ is not an investment advisor, and any content published by Commodity HQ does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities or investment assets. Read the full disclaimer here.

14 Responses to “Protect Yourself From Debased Currencies, Jim Rogers Style”

  1. Felix Mosso says:

    I do enjoy your daily commodity HQ newsletter, it is right to the point.

  2. [...] Poland is not a country that investors normally think of when it comes to commodities, but it is rich in coal, natural gas, copper and even silver, for which last year it was the sixth-biggest producer. It has become the country with the second-biggest silver reserves on the planet. According to the U.S. Geological Survey, this revision in reserves is a recent one and came after new information was given to them by both Polish government and silver industry sources [see also Protect Yourself From Debased Currencies, Jim Rogers Style]. [...]

  3. [...] Jim Rogers is another who has publicly ripped the Fed for their actions in recent years. He feels that Bernanke and company do not know what they are doing and that printing more money will never solve our problems. “Maybe sometimes in the short term printing money has alleviated the situation, but anybody who has studied history or economics knows that printing money in the longer term doesn’t work”says Rogers. Rogers has long been warning of a deep recession in the next few years, putting him right in line with Schiff, as both feel that we are heading for a financial crisis [see also Protect Yourself From Debased Currencies, Jim Rogers Style]. [...]

  4. [...] “that will just be icing on the cake” as far as Rogers is concerned. Money printing will debase the dollar and should allow for real assets like ag to make a nice jump. For those of you who buy in to [...]

  5. [...] because the potential exists for a market correction if and once the market falls. Rogers has been highly critical of expansionary monetary policy, which increases the money supply and can lead to asset bubbles, [...]

  6. [...] Bernanke and the Fed continue to print more money and debase the dollar, investors are becoming increasingly concerned with the potential impact this will have on [...]

  7. [...] Bernanke and the Fed continue to print more money and debase the dollar, investors are becoming increasingly concerned with the potential impact this will have on [...]

  8. [...] Bernanke and the Fed continue to print more money and debase the dollar, investors are becoming increasingly concerned with the potential impact this will have [...]

  9. [...] may see a couple of strong months, but the outlook for the U.S. economy next year is pretty weak. Dollar debasement is actually one of the most talked about issues that many feel will contribute to a possible [...]

  10. [...] His thought process, as he revealed in the Forbes interview, was that currency was being “debased.” He places a heavy investment focus on agriculture, supported by his findings that students [...]

  11. [...] there for the foreseeable future, investors are looking to commodities in hopes of evading the devaluation of the U.S. dollar. On the flip side, recent moves by the Fed and European Central Bank to “beef up” their [...]

  12. [...] there for the foreseeable future, investors are looking to commodities in hopes of evading the devaluation of the U.S. dollar. On the flip side, recent moves by the Fed and European Central Bank to “beef up” their [...]

  13. [...] there for the foreseeable future, investors are looking to commodities in hopes of evading the devaluation of the U.S. dollar. On the flip side, recent moves by the Fed and European Central Bank to “beef up” their [...]

  14. [...] because the potential exists for a market correction if and once the market falls. Rogers has been highly critical of expansionary monetary policy, which increases the money supply and can lead to asset bubbles, [...]

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