Friday, February 12, 2016

Gold Buying Opportunity Has Still Not Come


After a one-year hiatus from Kitco News, Jim Rogers joins Daniela Cambone to share his thoughts on the market, specifically gold. “Gold has its own mind,” he says. “Sometimes it moves with the dollar, sometimes it doesn’t.” Rogers says he’s not so concerned with the daily fluctuations and adds he is still waiting on a buying opportunity. 

Looking east, Rogers says he is bullish on the Chinese economy despite recent weaker economic data and continued easing in the country. “I’m bullish on the Chinese markets. My largest stock positions are in Asia - China, Japan, Russia,” he says. “I see more real estate bankruptcies in China, there’s a lot of debt buildup in China. But at the moment, I’m still there and I even bought more last week.” Rogers also has a keen interest in the Russian stock market. 

Tune in now to get his thoughts on the Federal Reserve and why he thinks they may not even raise interest rates this year.

- Source, Kitco News

Friday, February 5, 2016

'Be Worried' About Increasing Turmoil as US Dollar 'Is Not Sound'

International investor Jim Rogers warns investors that the United States is long overdue for a recession and that the dollar is far from sound.

"The U.S. is terribly over-indebted country with the largest debt in the history of the world," the chairman of Rogers Holdings recently told Bloomberg TV India.

"The U.S. dollar is not sound. But with a lot of turmoil coming, people think U.S. dollar is a safe haven. What I expect to happen is that turmoil will get worst and the dollar will go higher — it is already over-priced — and may turn into a bubble," he said.

"My plan is to then sell US dollar. What I will buy, I don’t know — gold or the Chinese renminbi," he said.

Meanwhile, he expects economic growth to continue to stall around the globe.

"I expect nearly all economies around the world to slow down. In America, we have had nearly six or seven years without a correction in the economy or the markets. It is long overdue. Normally, we have corrections every four to seven years in the United States. So we are overdue," he said.

"The debt is going higher and higher. Many of our customers are slowing down — China is slowing down and Japan is in recession. Now, I certainly expect more slowdown to come worldwide," he said.

As for the Federal Reserve's recent interest-rate hike, Rogers is far from impressed. In fact, he thinks the tactics of the central bank are actually far more harmful to the U.S. economy than being of nay help.

"The Fed is just made up of bureaucrats and academics. They don’t know very much," he said. "The first interest rise from the Fed doesn’t mean very much. The third one is where you have to start worrying. If the Fed raises rates three or four times, then it is usually all over for the stock market. So just keep watching, be worried and be prepared," he said.

Rogers went on to explain his own investment strategy.

"I have hedged my gold and silver holdings. I expect gold to go under $1,000 an ounce. What does that mean for silver — $12 or $10 an ounce — I haven’t figured it out. But certainly under a $1,000 for gold at which point I hope I am smart enough to take my hedges off and buy a lot of gold — whether its $950 or $900, I don’t know," he said.


- Source, NewsMax

Monday, February 1, 2016

This Could Ignite a U.S. Dollar Collapse


If you think that the U.S. dollar is a safe haven, think again. Despite the strength in the U.S. dollar exchange rate to many major currencies these days, billionaire investor Jim Rogers thinks otherwise.

Jim Rogers: U.S. Dollar Is Not Sound

Jim Rogers, chairman of Rogers Holdings, recently spoke with Bloomberg TV India and expressed his concerns about the U.S. dollar: “The U.S. dollar is not sound. But with a lot of turmoil coming, people think U.S. dollar is a safe haven. What I expect to happen is that turmoil will get worst and the dollar will go higher—it is already over-priced—and may turn into a bubble.” (Source: “‘Third Fed Rate Hike is Where You Have to Start Worrying’,” Bloomberg TV India, last accessed December 24, 2015.)

Rogers is worried about the debt problem in the U.S. He told the media outlet that the U.S. is a “terribly over-indebted country with the largest debt in the history of the world.” For him, the largest long currency position for the past two to three years has been the U.S. dollar. But right now, his plan is to sell the U.S. dollar and maybe get into gold or the Chinese renminbi.

Jim Rogers also talked about the Fed rate hike. On December 16, the U.S. Federal Reserve raised its benchmark interest rate by 25 basis points, marking the first interest rate increase since the financial crisis. However, Jim Rogers is not impressed. He said that “the Fed is just made up of bureaucrats and academics” and that “they don’t know very much.” He mentioned that market interest rates were already going up and Fed’s first rate hike “doesn’t mean very much.”

Jim Rogers: Third Fed Rate Hike Is the Time to Start Worrying

The Fed is expected to increase interest rates a few more times in 2016. To that Rogers said: “The third one is where you have to start worrying. If the Fed raises rates three or four times, then it is usually all over for the stock market. So just keep watching, be worried and be prepared.”

With the world economy at risk of a slowdown and commodity prices tanking, Jim Rogers sees potential in precious metals. He said that he has hedged his positions in gold and silver because their prices could drop further. However, once gold drops below $1,000, the billionaire investor would take his hedges off and “buy a lot of gold.”


Wednesday, January 27, 2016

‘Be prepared, oil prices may hit rock bottom’

We are now paying for the excesses of the past and everything is going to go down more than it should, says Jim Rogers, US investor and author. Meanwhile, China may play a key role in the showdown between Saudi Arabia and Iran, he added.

This week, crude fell to its lowest level in more than 11 years, while Iranian outrage over Saudi Arabia’s execution of a prominent Shiite cleric spells doom for any possible production cap deal that would have reversed the negative trend in oil prices.

Global Brent crude benchmarks hit $34.93 a barrel on Wednesday, down 1.5 percent from the day before and the lowest since 2004.

Businessman Jim Rogers sees the steep downward trend in oil prices as reflective of severe financial problems in the global economy that began almost a decade ago with the US financial crisis.

“We’re going to pay for the prices of the excesses of the past 8 or 10 years and everything is going to go down more than it should. Whenever you have something go down, it usually overshoots to the down side; just like when things go up they go up too much,” Rogers told RT.

How low can oil prices go?

The American investor warned that any panic in the market could drive oil prices down to new low records.

“Some people are saying 20 dollars [a barrel]; I don’t know; that’s not my prediction. I’m just saying ‘be prepared’ if things will go – at least for a short time – lower than anybody could conceive.”

Without providing any definite time frame, Rogers said oil prices will go “much, much higher sometime later, especially in the event of war, in which case they would go up very high – soon.”

The outbreak of war notwithstanding, oil prices can be expected to jump in the future because, as Rogers explains it,“drilling is drying up.” It's simply becoming too expensive as oil prices plummet for many companies to stay in business.

“They are definitely going to go up in the next few years because supply is going to dry up. Drilling is drying up; everything is drying up, and so you’re going to have much higher oil prices in the future.”
The Chinese connection

Rogers went on to explain that China – which depends on oil to keep the wheels of its massive economy churning out exports - is watching the developments between Saudi Arabia and Iran with great interest.

“If Iran and Saudi Arabia start a war, that’s going to be very bad for everybody and China needs a lot of oil. So of course China has a connection and wants to do something about it to keep things calm so they can continue to get oil.”

Although low oil prices may be a boon for some countries, like China and Germany, it’s bad for oil-producers, like Venezuela, Russia and Saudi Arabia. However, since China remains largely neutral in the ongoing skirmishes that are continuing to rock the Middle East, it may hold the key to resolving many of the region’s most trenchant problems.

“China certainly does not want a war to erupt between Iran and Saudi Arabia, and China is seen as much more neutral than anybody else. America is not neutral; the Europeans are not seen as neutral…”

If anybody can calm things down it’s probably China,” Rogers concluded.

- Source, Russia Today


Sunday, January 24, 2016

Jim Rogers: Bullish on Russia, China


Rogers Holdings Chairman Jim Rogers discusses why he's investing in Russia and China.

Tuesday, January 19, 2016

Thursday, December 10, 2015

Jim Rogers says oil ignoring bad news usually means rebound near

Oil's holding near $45 while the bad news keeps coming. For investor Jim Rogers, that's usually a sign a rebound's round the corner.

The Organization of Petroleum Exporting Countries is still pumping near record amounts of oil, China's imports have slowed and U.S. crude stockpiles remain about 100 million barrels above the five-year seasonal average.

Yet, U.S. benchmark prices have held steady for more than four weeks since plunging to a six- year low at the end of August.

“When there's bad news and something doesn’t decline, it usually means it's at a bottom and will be turning,” Rogers, who correctly predicted a commodities rally in 1999, said in an interview in Singapore on Thursday. “Whether we’re at a turning point or not, I don’t know yet and I’m watching this very closely.”

A persistent global glut of crude that's cut prices by half over the past year has prompted banks including Citigroup Inc. to predict further declines, with Goldman Sachs Group Inc. warning they may drop to as low as $20 a barrel. The losses, driven by a U.S. shale boom and OPEC's strategy to sustain output to defend market share, has led a slump in commodities that's roiled currency, equity and debt markets across the world.

West Texas Intermediate crude futures in New York plunged to $37.75 a barrel on Aug. 24, the lowest intraday level since February 2009. They’ve since averaged $44.99 and haven’t closed below $44 from the start of September. The November contract traded 53 cents higher at $45.27 at 1:17 p.m. Singapore time on Friday.

While U.S. inventories remain abundant, the nation's production has slipped in seven of the past eight weeks and drillers have idled more than half their rigs. Those cuts will help stabilize prices, Rogers said.

“Some companies are stopping drilling and production is actually going down in the U.S. now,” the chairman of Rogers Holdings said. “Shell is canceling some drilling. All of these mean supplies will be going down in the future.”

Rogers also said he was watching Glencore Plc, whose shares fell by a record on Monday in London amid concern over its debt load. The commodity producer and trader has since recovered some of the near 30 percent loss after the company moved to reassure investors and as banks including JPMorgan Chase & Co. said the slump left the stock undervalued. Citigroup wrote that management should consider taking the company private.

Agriculture Opportunity

“It might be a good trade if you go public at a high price and you buy it back at a depressed price,” Rogers said, referring to Glencore. “That might be a wise thing to do. On the other hand, they have a lot of debt so I don’t know if they could do that.”

With the Bloomberg Commodity Index, a measure of returns from 22 components, plunging to the lowest level since 1999 in August, Rogers also sees opportunities for investors in other raw materials.

“Agriculture is probably where the best opportunities are,” he said. “I’m not buying rice and sugar at the moment but some of these things are down a lot from their all time highs. There's potential opportunities out there.”

- Source, The Star Online

Saturday, December 5, 2015

Jim Rogers: Mideast Turmoil Could Lead to War

International investor Jim Rogers warns that Mideast turmoil could easily escalate into a war, which would force a sea-change in today’s investing landscape.

“The whole Middle East situation is unbelievable. I cannot think of many times in history where you have so much just pure, pure chaos by so many people," he told Midasletter.com.

"It’s not as though there are one or two people making mistakes in the Middle East, there must be a dozen people making mistakes in the Middle East, and unfortunately, they are coming together more and more,” he said.

“It looks like it could end in a very, very bad way for all of us,” he said.

“Wars start when bureaucrats make mistakes and then other bureaucrats react to those mistakes and then next thing you know, you have eight or ten bureaucrats sending 18 year old kids to kill each other, and it’s very worrisome what’s happening,” he said.

“War is not good for anything, anything at all, except commodities. I’m not going to say buy commodities because you don’t want to start a war, but if there’s going to be a war, it usually means commodity prices go higher,” he said.

And would military conflict be a way to divert attention from crumbling economies and the lawmakers responsible?

“It is true that throughout history, war has been declared by politicians or bureaucrats have used war to distract people from other problems. I’m not sure that it’s a conscious act, they sit down and say ‘Ah, we’ve got a problem, so let’s start a war,’ or whether it just happens naturally, but in either case, there is no question at all that this is distracting a lot of us from the fact that the economy is not doing well,” he said.

Rogers is utilizing a shelter-in-place investment theology.

“I’m sitting and watching, not doing much of anything,” he said. “I would think that the market should be going down, because we’ve had a six-year run with virtually no corrections in the United States and therefore most of the world. I’ve bought some Russian shares recently; not much. Bought a few shares in Africa recently, not much.”

He also is uncertain just how much of a haven gold will be.

“I own some gold. I don’t think that’s what’s going to be the safe haven at the moment; it could be, I mean, if war breaks out, of course, a lot of people are going to flee into gold, and I’ll be buying more gold at $1,500 or you pick the number, and happy to get it.”
- Source, News Max

Monday, November 30, 2015

A lot of people are going to flee into gold

I own gold, I own some gold. I don’t think that’s what’s going to be the safe haven at the moment; it could be, I mean, if war breaks out, of course, a lot of people are going to flee into gold, and I’ll be buying more gold at 1,500 or you pick the number, and happy to get it. No, if the world reverts to the US dollar, the US dollar goes higher, often, not always, but often, gold goes down when the dollar goes up. People will be fleeing to the dollar, they think it’s the better safe haven. So I would prefer – I own more gold than I do dollars, at the moment, I’m not sure I own more dollars than I do gold, at the moment, expecting the dollar to go higher, which will put more pressure on gold. But I’m not selling my gold; I am hedged with my gold. I’m doing nothing at the moment.

- Source, Jim Rogers via the Midas Letter

Wednesday, November 25, 2015

War Distracts People From the Poor Economy

It is true that throughout history, war has been declared by politicians or bureaucrats have used war to distract people from other problems. I’m not sure that it’s a conscious act, they sit down and say ‘Ah, we’ve got a problem, so let’s start a war’, or whether it just happens naturally, but in either case, there is no question at all that this is distracting a lot of us from the fact that the economy is not doing well. The economy worldwide is not doing well, and this is certainly distracts people, making them think about other things, and it might even revive – it would revive, some parts of the world economy. Not a good way to revive world economies; in the end, you destroy more capital, as well as lives, than you develop, but it has happened this way many times in history.

- Source, Jim Rogers via the Midas Letter

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