DEZ
Rogers Says Commodity Slump a Temporary Blip in Multiyear Rally
Feb. 14 (Bloomberg) -- Jim Rogers, who co-founded the Quantum hedge fund with George Soros in the 1970s, said a plunge in commodities last week was a blip in a multiyear rally that will lead to all-time highs for gold and other raw materials.
``The bull market has years to go,'' said Rogers, whose current firm, Beeland Interests Inc., manages the Rogers International Commodities Index.
A lack of investment in production capacity in the 1980s and 1990s has eroded the ability of suppliers to keep pace with rising demand, he said.
The Reuters Jefferies CRB index of 19 commodities plunged 4.1 percent last week, the biggest drop since August 1990, and is down about 7 percent since reaching a record high of 350.96 on Feb. 1.
Copper and natural gas have fallen from record highs in the past few months, and gold dropped from a 25-year high.
``There will be corrections,'' Rogers said in a telephone interview. ``But 10 years, 15 years from now, they're going to be a lot higher.''
Many commodities, especially agricultural products, remain well below their all-time highs, which means they ``have a long way to go'' during what will be a prolonged rally, Rogers said.
Gold, which reached a high of $579.50 an ounce in New York on Feb. 2, probably will top its record high of $873, which was reached in 1980, Rogers said.
``Gold will eventually make an all-time high,'' and probably will go even higher with inflation, he said.
bloomberg.com |
