Forex Business: Gold is on pace for its 1st yearly decline in 13 years as investors wait to find out more about FED tape well again prices which had been on a tear edging closer to a 110 a barrel are also on the decline the past few days after tension over Syria appears to ease for the newer terms. So what is the best way to play it all out?
Well of course we had to bring in Jim Rogers the legendary investor; you see what’s happening with gold all good things must come to an end after a 13 year run up in gold does this surprise you?
Jim Rogers: I told you before gold has been up 12 years in a row that’s an anomaly that’s very strange I knew nothing up for 12 years before it’s having a rest it needs a rest I wouldn’t be surprised if it rest for a year or two.
FB: Would you buy it here?
Rogers: I’m not buying it here but watch FOX business to find out if it goes down below 1000 I hope to buy a lot.
FB: The question is: are you selling?
Rogers: No I never sell an ounce of gold or an ounce of silver it’s going to be for my kids.
FB: So obviously you are not looking short term now you have a long term interest in commodity but will you be playing it because of what’s happening as a result with the tension in Syria or that’s too short term for you?
Rogers:No that’s too short term for me but if WW3 breaks out that’s not short term.
FB: But the problem with Syria though – and this is what concerns a lot of people – is that there is no way of telling what the ramifications might have been for example, Iran has obviously greatinterest in Assad remaining in power in Syria Assad provides Iran with an entry into Lebanon and all kinds of things so if it spills over into our relations with Iran may be it gives them an idea that they can go ahead with their nuclear program might that be a buy signal?
Rogers: If there’s WW3 and Mr. Obama seems to want to go to war he seems desperate to go to war that’s going to make gold go to the roofit’s going to make all commodities go to the roof now I don’t want to own commodities because Mr. Obama wants to go to war.
FB: Can I just drop in here because I know he sent our secretary of state Mr. Kerry to meet with Russian foreign minister Mr. Lavrov and they seem to have come up with a deal to stave off war.
Rogers: Yes I know but a week ago he said :”I don’t care what Congress says if I want to bomb Syria I’ll do it”.
FB: Yes but what do you buy in this atmosphere what commodity do you like right now?
Rogers: Agriculture…Buy sugar!
FB: Sugar has come down enormously what about 75%? So what is this just temporary because obviously commodities are a very scary thing to play it takes only a few people like Jim Rogers to play the commodities game as it changes quickly.
Rogers: I hope so I’m buying sugar you know when you buy it you hope it goes up that day I’m buying sugar as we speak so I have no idea when it’s going to go up or go down.
FB: Do you buy it by the ETF how do you buy sugar?
Rogers:I buy sugar its self I also buy companies that produce sugar.
FB: The question though is where is the whole world economy going? You live in Singapore for half the time you know very well exactly what’s going on in Asia there. Is Asia growing? Has its slowing up in growth stopped? Is it back up on the incline? Does that change your investments decisions?
Rogers: There is this Artificial Liquidity right now America Japan Europe England are all printing money as fast as they can to debase their currencies. This is an Artificial Liquidity boom they’re having. The people who are getting the money are very happy, the people who are not getting the money, You and I and the rest of us this is all going to end very bad. Because it’s going to end.
FB: How? How will it end?
Rogers: Eventually the market is going to say :”We’re not going to take your garbage paper anymore!” Orthey’re going to come to their senses and stop printing money and then…Don’t worry you’re going to have a job because somebody has to report the chaos.
FB: So Jimmy any currencies interest you?
Rogers: Yes the Chinese Renmimbi. But you can’t just pick up the phone and buy it. I actually own US Dollars as we speak because I consider that there’s going to be a lot of turmoil coming, people think it’s a safe haven.
FB: Last time you were here you were big on Russia. I don’t know if you were playing the Roble but you were at least believing that Russia had turned around and was doing more sensible things. Has it stayed steady on that course?
Rogers: It’s even gotten better. I have not really bought much then because I had been too lazy maybe I should watch FOX business and I would get some Russian tips.
FB: But you have bought something in Russia. What?
Rogers: Yes. ETS. I didn’t want to buy their oil and gas because I own enough oil and gas I’m looking for other kinds of companiesin Russia if you know any…let me know.
FB: It wasn’t for nothing that Russia was subsidizing Cuba it was all for the sugar wasn’t it?
Rogers: It was for the sugar. And by the way they’re subsidizing Syria because they don’t want the gas pipelines to go to Europe because it would compete with them.
FB: They also want those ports.
Rogers: And they also want the ports yeah. There’re lots of reasons.
FB: Good to see you Jim.