Falling commodity prices are temporary and likely due to the collapse of the MF Global brokerage firm, says noted commodities investor Jim Rogers.
"With MF Global going bankrupt – which was a gigantic commodities firm – there was a lot of artificial forced liquidation of commodities. People have to sell whether they like it or not. It's artificial selling right now," Rogers tells CNBC, adding he's stick with commodities.
"I'm long commodities and currencies, because if the world gets better, the shortages in commodities will make sure I make money; if the world economy doesn't get better, I'd rather own commodities because they're going to print money," he says, referring to loose monetary policy central banks have taken in the last few years to kick-start economic growth.
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Silver looks particularly good, and gold, while dipping, will resume climbing.
(Getty Images photo)
Stay out of equities, Rogers adds.
"This is like the 1970s, in the 1970s stocks did nothing. Commodities went through the roof. I'm short stocks and long commodities for the most part."
Gold is trading around $1,700 an ounce after approaching highs of around $2,000 earlier this year.
Loose monetary policies often weaken paper currencies and fuel inflationary worries, which makes gold an attractive hedge, especially in Europe, where gold demand was up 135 percent in the third quarter compared with the same period a year ago, according to the World Gold Council, CNNMoney reports.
Worldwide demand for gold was up 29 percent in the third quarter.
"Fears generated by the deepening sovereign debt crisis in Europe were manifested in a strong desire to buy gold," the World Gold Council reports.
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