Wednesday, July 2, 2014

Bullish On Commodity Prices

“In bull markets, there are always periods of consolidation and setbacks and this market is no different,” the commodities guru said in an exclusive interview with The Bullion Desk on Thursday .
“In 1987 stocks were down 40-80 percent worldwide and it took a long time for it to get above pre-correction levels but the bull market was not over,” he said.
“We are seeing the same normal correction happening in commodities now.”
“But we have not seen enough supply come on stream yet in any commodities sector, except maybe iron ore or something like that, to bring supply and demand back in balance,” he added.
“I may be wrong – I have been wrong many times in my life – but I suspect that we will see many more months of rising commodity prices,” he said. Commodity markets normally end in a bubble and this one may be no different,” he said. “I don’t think the cycle will last 10 years but who knows?
Governments are still printing money and this has gone on for much longer than anyone expected, which could help fuel the commodities boom,” he said.

Jim Rogers is a bestselling author, financial commentator and successful international investor. Rogers was a co-founder of the Quantum Fund (considered to be the first truly international fund of its kind) and is the creator of the Rogers International Commodities Index (RICI).