Jim Rogers’ latest on Gold, Dollar and Commodities

Jim Rogers, commodities and currencies trader extraordinaire, said he will sell dollars during the current dollar rally, reiterating his view of the Chinese Yuan as the “safest investment,” the Associated Press reported.

He characterized the commodities trade as a “big bubble,” although the prices of materials and agriculture have a long-term run ahead, suggesting investors wait for a pullback in gold before purchasing the yellow metal.

“Don’t put all your eggs in the U.S. dollar,” warned Rogers at a conference in Singapore.

“I happen to own some dollar at the moment, but only because it is so beaten down … If everybody is negative on it, including me, it’s time to rally. If the dollar rallies, I suspect I’ll sell all my U.S. dollars and put my money in other currencies.”

Rogers anticipates demand for the Yuan with the next few years. “The Chinese Yuan has been too low, either artificial or not. It doesn’t matter. In fact I’m buying some renminbi (Yuan) this afternoon.”

He also likes commodities-based currencies which have stable central banking policies such as the Aussie dollar and Canadian dollar.

The 68-year-old founder of the Rogers Holdings said he expects U.S. bonds to enter a long-term bear market, cautioning against any dollar holdings.

Rogers, a long-term commodities bull, holds commodities and currencies in his portfolio, and has shorted emerging markets and U.S. technology equities.

Commodities, he said, will rise in prices as supplies remain difficult meeting growing demand, especially from Asia, where population and income growth are expected to grow rapidly.  Rogers expects the bull market in commodities will extend to between 2018 and 2020.

“Raw materials is a big bubble, but it still has a long way to run,” Rogers said.

On the gold price, Rogers sees a consolidation, and maybe a decline, from current price levels.  On pullbacks in the precious metal, he said he will be a buyer.

“I would expect gold will need a little rest. If prices go down, I will buy more gold,” he said. “I expect gold to go much, much higher in a bull market over the course of the next 10 years. Everything is going much higher because currencies are being debased everywhere.”

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