At Wall St. Cheat Sheet we stay in touch with legendary commodities investor Jim Rogers because he knows his niche. (See “Jim Rogers: Here’s My ‘Heads I Win, Tails You Lose’ Portfolio“) Now that commodities (NYSE:RJI) have pulled back and silver (NYSE:SLV) is crashing, let’s see what Rogers thinks.
Here’s a few excerpt’s from Rogers’ interview with the Economic Times:
ET Now: But this fall that we have seen this week, 30% in silver, gold down 5%, crude down 15, it has been across the board. Many base metals are at multi-month lows. Do you see this to be the starting point of more downward pressure? Where do you see the next 3 months for these commodities and how volatile they can be?
Jim Rogers: Again, I have absolutely no idea. 5% correction in gold is meaningless. These things correct 10-15-20-30% every year. Nothing unusual about that. That is the way the markets work. I do not see anything unusual. I expect there would be more correction during the course of the bull market. I hope that the bull market goes up, consolidates, goes up, consolidates, goes up and consolidates for years to come. That is my expectation for all commodities.
ET Now: Given this fall that we have seen, there is an expectation that there is more downside on silver, particularly given its stupendous rise. What is the sense there, over there also, are you out of the commodity completely or do you still hold positions?
Jim Rogers: I have not sold any commodity. I own all my commodities. We are in a flexible bull market. I hope I am smart enough in the entire 15 years to realize when the commodity bull market is finally coming to an end, I am probably smart enough to sell. This commodity bull market will probably end in a bubble. Most bull markets and most sectors, whether it is stocks, real estate, whatever it happens to me, lands in a bubble. We are far-far-far from a bubble so far.