Tags: Jim Rogers Commodities to Surge as Unrest Spreads

Jim Rogers: Commodities to Surge as Unrest Spreads

Thursday, 03 Feb 2011 08:00 AM

More social unrest in Egypt and elsewhere is on the way, which is bullish for commodities, says investor guru Jim Rogers.

Currencies, meanwhile, will stay in turmoil, which should also bring out the commodities bulls, Rogers tells CNBC.

"I don't own very many equities," says Rogers, who co-founded the Quantum Fund with billionaire George Soros in the 1970s.

"I don't know what's going to happen but I expect more currencies turmoil, more social unrest, more governments collapsing so I invest more in currencies and commodities than stock," he said.

Food shortages meanwhile will make agricultural commodities rise even more.

"You don't just snap your fingers and have palm oil, all this takes time."

Popular uprisings have toppled governments in Tunisia and Egypt in part due to high food prices.

Egyptian President Hosni Mubarak has said he will not seek reelection later this year in wake of the massive protests, yet unrest continues there.

Investors often buy commodities such as oil, metals or agricultural products amid such uncertainty.

Global economic recovery is also helping, pushing commodities up for a fifth straight month in January, the longest rally since March 2000, Bloomberg reports.

Wheat, cotton, copper, oil and hogs have all seen price hikes recently.

"You got things really accelerating on the demand side of the equation, and there continues to be some supply constraints," James Dailey, who manages $185 million at TEAM Financial Asset Management in Harrisburg, Pennsylvania, tells Bloomberg.

"The monetary backdrop is like adding lighter fluid to the fire."

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More social unrest in Egypt and elsewhere is on the way, which is bullish for commodities, says investor guru Jim Rogers. Currencies, meanwhile, will stay in turmoil, which should also bring out the commodities bulls, Rogers tells CNBC. I don't own very many equities, ...
Jim Rogers Commodities to Surge as Unrest Spreads
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2011-00-03
Thursday, 03 Feb 2011 08:00 AM
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