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Legendary commodity investor Jim Rogers sees some serious problems stemming from the situation in Syria and the end of the U.S. Federal Reserve'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.
Global equity markets also are feeling the pain from Syria's carnage, with Middle East exchange experiencing the steepest declines. The benchmark index in Dubai has plummeted some 7%, and markets in Abu Dhabi, Israel, Bahrain, and Kuwait all slipped 1% to 3% on Tuesday.
While there's no panic yet, we're already seeing a spike in both gold and oil.
Gold has regained its luster this year after being battered 17% year to date amid record-breaking stock market rallies and worries of a Fed QE taper. Investors recently have poured money into the yellow metal due to its "safe-haven status" in times of geopolitical turmoil.
The precious metal gained 2% Tuesday to a three-month high of $1,420.60. Up some $200 an ounce, or 20%, since its June lows, gold is now officially in a bull market. [Bonus: Check out what Rogers said about gold's multi-year bull market in our exclusive interview with him from April.]
But it's oil prices that could move the most on news out of Syria...