Investment guru gives his view on the markets.
[This interview originally appeared on HardAssetsInvestor.com and is republished here by permisison.]
When Jim Rogers talks, investors listen. Rogers may be the world’s best-known commodity investor, with his Rogers International Commodity Index and best-selling books, including “Hot Commodities.” HAI Managing Editor Sumit Roy recently spoke with Rogers from his home in Singapore about a wide range of market topics.
HardAssetsInvestor: After dropping 29 percent in 2013, gold has rebounded a bit this year. Is the bottom in, and if so, where do you see prices going?
Jim Rogers: I’m very bad at market timing. I’m a very bad short-term trader, so I have absolutely no idea what is going to happen. I do own gold, but I have hedged some of my gold. I expect there will be another opportunity to buy gold sometime in the next year or two.
If that means gold is under $1,000, I hope I’m smart enough to buy. If it means gold is $1,600 because America and Iran end up going to war, I hope I’m smart enough to buy it. In my view, it’s more likely there will be another chance to buy gold lower than now, and that’s why I’ve hedged some of my gold, but I’m not selling.
HAI: What do you think about the situation between Russia and Ukraine? Is it something that commodity investors should be paying attention to?
Rogers: Absolutely, if for no other reason than the fact that both Russia and Ukraine are huge commodity producers. Ukraine especially is a large agricultural commodity producer and has been for centuries, and it’s been awfully good at it for centuries. I don’t know if this is going to disrupt production or not, but if it does, that is just that much less supply on the market.
HAI: I’m curious as to your thoughts on Federal Reserve monetary policy. We saw another tapering of the Fed’s QE program last week. Do you think they did the right thing with all this quantitative easing, and do you think there will be repercussions now that they’re ending it?
Rogers: It’s a disaster for all of us, for the whole world. They never should have done it in the first place. Because they are bureaucrats and academics, they didn’t know what else to do. It’s going to be terrible. Never in the history of the world has debasing of currency been good in the long term or the medium term. Sometimes it has helped in the short term, but it’s certainly not going to be good for us in the long term.
And this is the first time in recorded history when you’ve had all major central banks printing money at the same time, so when this ends, it’s going to be a disaster for the whole world.