Tags: jim | rogers | food | shortage

Rogers: Food Shortage Coming as Farmers Struggle

Monday, 18 Jan 2010 09:59 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Legendary investor Jim Rogers remains bullish on commodities and says the world will soon face food shortages.

"The fundamentals (for agriculture) have gotten better," he says.

"The inventories are now at the lowest they've been in decades, not in years.”

And that trend is just intensifying, Rogers tells CNBC.

“Things are getting worse. Many farmers can’t get loans to buy fertilizer now, even though we have big shortages developing."

And what will be the end result of this dynamic?

"Sometime in the next few years we're going to have very serious shortages of food everywhere in the world, and prices are going to go through the roof," Rogers said.

Agriculture is his favorite sector in the commodity space, but Rogers likes other commodities as well.

Take oil, for example.

“Over the next decade or so, oil is going to go much higher, because known reserves of oil are declining at a very rapid rate,” Rogers said.

He also favors gold for the long term, saying that if it drops $200 an ounce, he’ll buy more.

But if you’re looking for precious metals to acquire now, Rogers recommends silver or palladium, because they haven’t soared as high as gold.

Many experts share Rogers’ bullishness on commodities.

Goldman Sachs, for example, sees the S&P GSCI Enhanced Total Return Index appreciating 17.5 percent this year.

“Demand is growing on a global basis,” Peter Sorrentino, a money manager at Huntington Asset Advisors, told Bloomberg.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved