Legendary investor and commodities champion Jim Rogers says he is shorting U.S. Treasurys and lists agricultural commodities as well as silver and natural gas as investments with room to grow.

Inflationary concerns are motivating his investment decisions.

"I plan to sell short U.S. government bonds sometime in the next few weeks, months," Rogers tells The Economic Times.

Jim Rogers (Getty photo)

"Interest rates all over the world are going to go higher. We have inflation, staggering debt problems and currency problems facing us. So interest rates are going to go higher."

The Federal Reserve will stop buying back debt from banks in June, and when that program ends, Treasurys will tank, Rogers says.

While other commodities have rallied in recent years, there are still buying opportunities out there.

"I prefer to look at the things that are still depressed. Natural gas is depressed compared to oil, silver is depressed compared to gold," Rogers says.

"I would rather look at the things within those sectors to see what are the things that are still depressed and see if maybe that is where we should be putting money."

Silver is seeing particularly strong demand these days in that not only does the metal act as a hedge against inflation like gold, it also has industrial uses as well, which means it's in demand in growing economies like in Asia.

"Everyone wants a piece of silver, right from a cab driver to a professional," says Harshad Ajmera, proprietor of Kolkata-based JJ Gold House in India, according to Reuters.

"It looks like the whole of one billion population is chasing silver."