Legendary commodity investor Jim Rogers sees some serious problems stemming from the situation in Syria and the end of the Fed's generous flow of money.
In an interview with Reuters on Tuesday, Rogers said "oil and gold will go much, much higher" due to a "market panic."
"I own oil, I own gold, I own things like that and if there is going to be a war, and it sounds like America is desperate to have a war, they're going to go much, much higher," Rogers said. "Stocks are going to go down, some of the markets that I'm sure are already going down, commodities are going to go up. I'm not particularly keen on war, I assure you, but it sounds like they want it."
Rogers continued, "No matter how well the plans are made, strange things happen in war and who knows what unintended consequence will come."
Equities have been hit hard over worries of a war with Syria. The rout started late Monday following comments from U.S. Secretary of State John Kerry that the United States has a moral obligation to act on Syria's chemical weapon attacks. Selling picked up steam Tuesday with the Dow plunging 170 points.
Where to Invest in 2013: What Jim Rogers is Most Optimistic About
If you're looking for where to invest in 2013, know that the best investment opportunities often come from areas that are out of favor, giving them large potential upside.
That is what successful contrarian investors such as Jim Rogers and others do. They look for investments where people are rushing out of the 'doors' - creating bargain prices, as opposed to investments where people are clamoring to get into - creating rich valuations.
So far in 2013, one sector where investors have been rushing out of is the entire commodity space. This has created opportunities for sharp-eyed investors.
Jim Rogers on Gold Prices 2013
With the yellow metal down about 14% this year, wouldn't it be great to get the scoop from famed investor Jim Rogers on gold prices in 2013- specifically, why they're down, and if investors should still bet on a long-term gold bull market?
We had a chance to ask Rogers those very questions last weekend.
Sunday evening, Money Morning Executive Editor William Patalon III spoke on the phone with Rogers - who was at his home in Singapore - in a wide-ranging discussion about gold, U.S. stocks, commodities and global central banks' "race to the bottom" - or, as Rogers calls it, "race to insanity."
In this exclusive interview, the legendary investment guru took us on a tour of the gold market, taking a close look at what's driven the past 12 years of gold price gains - and what will move the yellow metal going forward.
He also pointed out the one fundamental reason why gold prices fell recently...
Jim Rogers Exclusive: It's a "Race to Insanity"
If you are invested in the lofty stock markets of the United States or Japan, legendary investor Jim Rogers has a message for you ...
Euphoric gains always lead to hangover pains - it's just a matter of when.
"This is artificial, as I've [repeatedly] said," Rogers told Money Morning during an exclusive interview Sunday night. "This is the first time in recorded history where nearly all the central banks in all countries are pumping out lots of money, debasing their currencies, printing money. I've never seen this in history, and now we've got everybody - or nearly everybody - doing it."
In a wide-ranging interview from his home in Singapore, Rogers also told us that:
- The currency-debasing policies of the world's central banks are a "race to insanity" that will likely do maximum damage to the global economy.
- Inflation is a much-deeper-seated problem than the "official" statistics show, which means that gold, energy and agricultural commodities are must-have holdings.
- And that Russia is the most intriguing potential investment target on his radar screen right now.
But a substantial portion of our talk focused on the current bubble in stock prices, which Rogers concedes can continue for some time.
Jim Rogers Exclusive: Once Gold Bottoms, We're Looking at "A Multi-Year Bull Market"
Gold soared 650% from August 1999 to August 2011.
But it's down 24% from the $1,885 peak and in recent days has whipsawed gold investors in a way they haven't experienced in 30 years.
The bear market has gold bugs reaching for the Dramamine. But we reached for the telephone instead and dialed Singapore - and legendary investment guru Jim Rogers.
Many of Wall Street's biggest investment banks are calling for additional blood-letting - meaning gold prices have a lot more room to fall. But in his usual contrarian manner, Rogers dismissed the consensus.
Indeed, the former hedge-fund manager and best-selling author believes this is a badly needed - even healthy - price correction.
And that will set the stage for a new bull market in gold - and a run to record prices that are sure to come in an era of cheap-money policies by the world's central banks, Rogers told Money Morning during an exclusive interview.
"Gold was setting us up for some kind of correction," Rogers said in a Sunday night telephone interview from his home. "Gold needed a correction - it still needs a correction - and I hope this is the proper correction which gold needs. Then gold - somewhere along the way - will make a bottom and we can all join in the bull market as [it] goes higher and higher."
And make no mistake: The shiny metal is going higher - much higher.
Jim Rogers' Prediction on Gold Prices Was Only Half of the Story
In October, legendary Quantum Fund manager Jim Rogers made a prediction about gold prices that left many gold bugs shaking their head.
Although Rogers admitted he wasn't going to be selling his hard assets, he predicted further consolidation and a near-term correction in the metals markets.
Predicting this short-term downturn, Rogers cautioned that gold had been on the rise for twelve consecutive years, a streak that was unparalleled. That was then.
This week, his prediction rang true as gold and silver prices took another huge hit. In the aftermath, gold prices are now down approximately 30% since reaching an all-time high in August 2011.
Jim Rogers on the Best Investments to Make When "Everything Has Problems"
Jim Rogers, the legendary Wall Street trader and best-selling author, is at it again.
In a new book and a series of recent interviews, he's explained the best investments to make now as central bankers flood the planet with paper money, creating a nightmare environment for investors where "everything has problems."
"For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency. This has never happened before," Rogers told Chris Martenson at PeakProsperity.com.
Rogers blasted the "overconfident incompetents" who run the U.S. government and Wall Street. He labeled U.S. President Barack Obama as "delusional."
He said as central banks maintain policies of low interest rates and inflation, individuals and households are being punished, while the irresponsible are being rewarded.
Jim Rogers: Hold on to Your Gold and Silver Coins
Legendary investor Jim Rogers sees now as a great time to load up on gold and silver coins - and he's not alone.
A record 7.5 million ounces of silver coins were sold in January as investors hunted for a safe haven investment.
"You can't get [silver coins]. They sell out," Rogers, who owns a rare 2013 silver coin, said on Yahoo! Finance's "The Daily Ticker." "Several mints have run out of coins because everybody's worried about the future of the world."
And 150,000 ounces of American Eagle gold coins were sold in January, the highest monthly total since July 2010.
"Gold has been up 12 years in a row which is extremely unusual for anything," added Rogers. "A lot of speculators are rushing into gold right now. I'm not rushing into gold, but I'm certainly not selling it. If it goes down, I'm buying more."
Jim Rogers on Election 2012: "A Pox on Both Their Houses'
Investing legend Jim Rogers says it doesn't matter who wins Election 2012.
In his view, both President Barack Obama and challenger Mitt Romney are equally bad.
"I repeat Shakespeare: A pox on both their houses as far as I'm concerned," Rogers said in a Breakout interview this week. "These are the guys who got us into this problem, so why does anybody think they will get us out?"
The "problem" to which Jim Rogers is referring to is the sluggish U.S. economy, dragged down by the huge $16 trillion federal debt and annual budget deficits in excess of $1 trillion.
Rogers predicted that regardless of who wins Election 2012, things won't get better.
"If Mr. Obama wins, his friends are gonna get more money. If Mr. Romney wins, his friends are gonna get more money. But you and I, and everybody watching this show are gonna be worse off because the debt's going to go higher, and the turmoil is gonna get worse."
Rogers blames both major parties for the nation's economic ills.
"All of them have gotten us into this situation," Rogers said. "Look at the last 50 years of American history. Republicans, Democrats, Republicans, Democrats .... It's not doing us any good. None of us are benefiting by what's been going on in Washington."
Jim Rogers is so down on U.S. politicians that he has absolutely no preference as to who wins the White House.
"I will vote the protest vote. I nearly always vote the protest vote," Rogers said without specifying which third-party might get his support.
In Rogers's view, a vote for either major party just perpetuates the problem.
"If they keep sending us turkeys, and we keep voting for turkeys, they'll send us more turkeys," he said.
Jim Rogers On QE3, Gold, Silver and Oil
The U.S. Federal Reserve is ready to launch a third round of quantitative easing, dubbed QE3 or QE Forever - but legendary investor Jim Rogers is shaking his head.
In fact, Rogers said repeating the same program the Fed has already attempted will make policymakers "look like fools again."
In an interview with CNBC before the Fed's announcement, the chairman of Rogers Holdings said he was skeptical that additional stimulus measures could have any meaningful effect on the U.S. economy. He added that despite his reservations, he expected the Fed to unveil QE3.
The iconic financier also lashed out at the new developments in Europe, including a move from Germany last week to funnel taxpayer cash into the European Central Bank's OMT program, their own version of quantitative easing. Rogers maintained they are not addressing the root of the problems plaguing the Eurozone area.
On Europe's move to implement a euro version of QE, Rogers said it affords the Western world "unanimity towards mutual destruction."
Any relief will be temporary, warned Rogers.
"We're all going to pay a horrible price for this in a year or two or three," he said.
As for why the Fed will continue its ineffective stance of zero to 0.25% interest rates through at least mid-2015, and the tossing good money after bad, Rogers advised the reasons are simple.
It's an election year and "Mr. Bernanke wants to keep his job."
That's why Rogers is getting defensive with commodities.
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