Tuesday, February 20, 2018

Jim Rogers: Hong Kong Real Estate Nuts Likes Silver, Gas

April 4, 2010 by  
Filed under Move, Smart Money Says

Jim Rogers described the dollar as “less ugly” than the other currencies”. Appearing on CNBC on March 26, 2010, he said, “There are very few paper currencies around these days that aren’t suspect, and they’re getting more and more suspect. There may come a time when we all have to have all of our money in real assets, whether that’s silver, or wheat, or zinc, or natural gas – – I don’t know, but all governments around the world are debasing their currencies.”

Jim Rogers Likes Silver Better Than Gold, Gas More Than Oil
Asked, which commodities sector looks most attractive? He said, “I like to buy the things that are cheap. Silver’s cheaper than gold on an historic basis. Natural gas is cheaper than oil an an historic basis. I look at the things that are cheap and sometimes I find a good thing to buy.”

Commenting on current oil prices he said, “One thing about oil right now that worries me…(Citing the Commodities Futures Trading Commiseration, CFTC) There are gigantic speculative long positions in oil right now. Just like with currencies, whenever that happens, it usually leads to a consolidation. Now oil probably should consolidate, it went from 30 to 80 in almost a straight line. Things that happen like that normally have a correction. It would be good for oil if it did. I’m not a market timer, and I’m a horrible short term trader, but I’m just saying to you, you see huge speculative long positions. You see something that went straight up. Maybe it would be good for oil, maybe it would be good for all of us, if it consolidated for a while.

Asked what’s the fundamental argument for buying some of these commodities, how can you get involved in these commodities safely?
Rogers replied, “I don’t know if there’s anything safely in the investment world. I’ve never used that word in my life. There’s no such thing as safely, everything has a risk. You know, people who put their money in Iceland two or three years ago, and had it in the bank, thought they had a safe investment. Well, lo and behold, the currency collapsed. So you know the rest of that story…We’ve seen more and more speculation in oil and gold these days. Whenever that happens it’s usually time to step back and let other people speculate, and wait for things to cool off a bit. That’s what I’m doing. I have no idea if I’m right or not, but that’s the way I’m acting right now.

Asked what he considered to be the biggest bubbles right now, Rogers said, “There’s no question that the U.S. Long Bond is a bubble, if you ask me.” The other big bubble he sees is Chinese real estate, although he did credit the Chinese government for “trying to cool things off.”
In Rogers words, “Hong Kong Real Estate is nuts if you ask me. Several Asian countries are nuts right now.”

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