Jim Rogers Rotates From Gold To Rice, Sets Foundation For Next Bubble

Tyler Durden's picture

During a presentation in Chicago yesterday, Jim Rogers may have well laid the foundation for the next bubble predicted by Zero Hedge in October, namely rice. His comments may have also spooked some of the weaker hands in gold, which has tumbled by $20 today, primarily on concerns what Chinese tightening may do to demand for the precious metal. Of course, how tightening is bad for commodities and good for stocks is one of those questions that can only be explained by the Fed's third mandate. From Bloomberg: "While gold “may go down for awhile,” the metal is “going to go over $2,000 in this decade,” Rogers, who owns gold, silver and rice, said today during a presentation to business executives in Chicago. Gold touched a record $1,432.50 an ounce in New York on Dec. 7. The price closed today at $1,387. “I’d rather own rice,” Rogers said. “I’d rather own something that’s more depressed than gold.”"

Rogers has long been bullish the MOO complex, and the recent surge in food prices merely validates his most recent predictions:

Agricultural commodities are “going to boom” as demand increases in developing markets, primarily in Asia, he said. All commodities will be supported by the weakening dollar, which is losing value because Federal Reserve Chairman Ben S. Bernanke is “printing money” by buying Treasuries in an effort to shore up the U.S. economy, Rogers said.

“Paper money is made of cotton, and I’m long cotton, by the way,” Rogers said. “One reason I’m long cotton is because Dr. Bernanke is out there running the printing presses as fast as he can.”

Rogers said he doesn’t own shares in U.S. companies and is short U.S. long-term treasury bonds. The Chinese renminbi may provide “almost sure profits over the next five to 10 years,” he said.

“In the future, it’s the stock broker who’s going to be driving the cabs,” Rogers said. “The smart stock brokers will learn to drive tractors, and drive them for the farmers, because the farmers will have the money.”

In the meantime, with the fundamental thesis that printing money will do little to strengthen the dollar unchanged, non-dilutable currencies of the precious metal variety are merely enjoying this latest shake out, which is certainly being welcome by banks like the PBoC which has the buying a few billions worth of gold to even remotely approach the actual (supposed) holdings of "sovereigns" like the GLD.

As for those who wish to catch the next bubble during the parabolic phase, we may recommend an early positioning in rice and its derivatives. And yes, rubber will be next.

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ZeroPower's picture

BTFD equities = go figure

Gold kinda nervous lows of the day here...

unwashedmass's picture

 

excuse me, but could we call a spade a spade at least at zerohedge?

gold is not going down due to Rodgers.

its going down because yesterday the CTFC gave JPM a free pass, and they are cratering the market praying that some physical shows up at the front door of the Comex.

Christ, can't we be honest at zero hedge?

OldTrooper's picture

Gold down is fine with me.  Just means I get a better price on my regular purchase.

66Sexy's picture

Silver down over a buck..

'The bears' said 2 months..

In 'the bears' we trust.

Turd Ferguson's picture

Starting to think you may be right.

I've updated this post with some very important info...I think. Please read before the close today:

http://tfmetalsreport.blogspot.com/2011/01/that-was-then-this-is-now.html

caconhma's picture

Jim Rogers likes publicity. He is an entertainer. He is also a trader. Consequently, he is a person, like his old pal Soros, whose statements are more misleading rather than being honest and helpful.

jackplata's picture

I agree.  He is a publicity whore

 

My silver holding got whacked today

txapela's picture

have to agree here. the major raid yesterday on the PMs was incredible - more so because it was during the CFTC meeting. They'll keep raiding it as much as possible throughout january, and then it'll come back up Feb and March like crazy.

 

Besides, any real role in rice is impossible unless you trade contracts. the 3 ETFs with some rice are a bunch of grains and agricultures. So even if rice goes up, a bunch of the other components mgiht go down. So you get what for your trouble? Shit? Yes. Shit.

flacon's picture

yesterday the CTFC gave JPM a free pass

 

I don't know who to believe any more...

 

CFTC proposes stringent commodity limits
Jan. 13, 2011, 10:17 a.m. EST
WASHINGTON (MarketWatch) -- Seeking to combat manipulation and speculation, the Commodity Futures Trading Commission on Thursday voted to propose a rule that would restrict the number of commodity futures and option contracts that any investor can hold in energy, agriculture or metals derivatives. "Position limits help to protect the markets both in times of clear skies and when there is a storm on the horizon," said CFTC Chairman Gary Gensler. The proposal was introduced by a vote of 4-to-1.
http://www.marketwatch.com/story/cftc-proposes-stringent-commodity-limit...
lsbumblebee's picture

Horses out. Barn door closed.

unwashedmass's picture

 

its total BS, they have a sixty comment period. Note they voted to PROPOSE a rule.

we have been here before....we've had several "comment periods" they have received literally truckloads of emails, letters, Fedexes....

it all means nothing. they work for JPM...

the grateful unemployed's picture

I don't want to buy anything that feeds the Chinese Army. The Peace bubble is about to burst too

A Nanny Moose's picture

If it's in your hands, then it's not in their mouths. How does that feed them?

the grateful unemployed's picture

glad to see war profiteering still has its proponents. by investing in rice futures you drive the price higher, cause the inflation that destroys the Chinese government from within, and sends troops out across the borders. those who repeat history are obligated to read it.

Confuchius's picture

@876086

 

Don't worry about the Chinese Army.

Worry instead about the amerrikan army, who runs around the world like lunatiks killing millions of civilians for no reason other than to be cruel.

 

the grateful unemployed's picture

and who do you back in that contest?

FunkyMonkeyBoy's picture

All the powers that be are trying to do is force everyone into equities, to take the huge amount of overpriced crap off their hands before this whole corrupt to the core system implodes.

I'll buy the dips on precious metals thank you. Don't trust these criminals one bit. Not when the market has already proven it can fall 10% in 10 minutes.

It's all just one giant ponzi scam, no way this can be unravelled nicely, they aren't even trying to, they are simply trying to pump the ponzi further.

Precious metals are truth.

TrafficNotHere's picture

Make sure you take delivery!!

Irwin Fletcher's picture

Don't think so. RJA may be the closest you can get.

spekulatn's picture

 ......and a stockbroker-aid.

Better book Willie before he croaks.

Bastiat's picture

As real food shortages may be imminent, food hoarding/speculating has its political risks.  Like maybe you end up hanging from a lightpole.

SheepDog-One's picture

Maybe Bernank and Geithner end up hanging from light poles instead.

StychoKiller's picture

You're being too merciful!  Pain Amplifiers are where it's at.

Saxxon's picture

Yes; the 'folksy' Jim Rogers is a very astute trader; very.  But he is also an elitest reptile who just called the black swarm of cyber-money down onto Asia's staple food.

Mark Medinnus's picture

After dissin' an icon, your pic's just gotta hit the most muscular pose.

theprofromdover's picture

Exactamundo.
Jimbo, maybe try and look yourself in the mirror sometime.
Rice? Getta life bottom-feeder.

Zina's picture

Who needs rice? I just need beans.

 

 

DosZap's picture

Brother Zina,

You can LIVE almost indefintely on Rice and Beans, and Water.

Snag a couple of 50# bags.(of both)

SheepDog-One's picture

I hate rice, I'll buy black beans and oats all day though. Loadin up more today this will get ugly. Dont forget salt either, at one time was the worlds main currency.

yabyum's picture

Sodium Bitches! ( Sorry, had to do it)

gmrpeabody's picture

No need to apologize, you just beat everybody else to it!

philgramm's picture

minor correction: it's sodium chloride bitchezzzzzzzz!!!!!!

Mark Medinnus's picture

which passes the smell test?

Turd Ferguson's picture

beans...the musical fruit

Millennial's picture

So are we gonna go mad max style collapse? Rome collapse? Soviet Union collapse? Or like is there's gonna be a "Viva la revolucion? With cigars and patrol caps?"

FunkyMonkeyBoy's picture

As long as the bernank ends up hanging from a lamp post i do not care what type of revolution we have, we can have a 'wear a tu-tu revolution' for all i care.

DosZap's picture

Screw that, I want a lot of fkin heads from poles.

DoChenRollingBearing's picture

Dos, you got that right.

NOT ONE on these guys has gone to jail, in the biggest financial crimes in world history.  This will not end well.  

I am almost done with my gold buying.  I am near 10% in physical PMs (most in gold), which is good enough for me.  There's a lot going on in my life that keeps me from upping that much more.  10% is plenty though.

Next is food (I have only a "starter" collection) and water cleaning devices.  And of course I need to buy and fire more 9mm and 7.62 x 39...

Saxxon's picture

+1 and he will have neighbors!

aerojet's picture

More like Collapse, American Style.  Think big-screen led tvs and iPads.

bonddude's picture

Jimmy nailed the whole enchilada.

Spalding_Smailes's picture

China tightening this year .... Nooooooooooo

the rookie cynic's picture

If the economy gets better, the new growth will need fuel = higher commodities.

If the economy doesn't get better, central banks are gonna print = higher commodities.

The only way commodity prices drop is if the economy gets worse and the PTB decide it time for a good 'ole debt and asset price deflation spiral from hell that wipes out the Fed, the TBTFs, and all their politicos and MIC cronies.

Which scenario are you betting on?

http://therookiecynic.wordpress.com/