Jim Rogers: Gold is "overdue" for a fall
Gold is "overdue for a rest" and probably will fall after a decade of gains that sent prices to a record, said Jim Rogers, the chairman of Rogers Holdings who predicted the start of the global commodities rally in 1999.While gold "may go down for awhile," the metal is "going to go over $2,000 in this decade," Rogers, who owns gold, silver and rice, said today during a presentation to business executives in Chicago. Gold touched a record $1,432.50 an ounce in New York on Dec. 7. The price closed today at $1,387."I'd rather own rice," Rogers said. "I'd rather own something that's more depressed than gold."Agricultural commodities are "going to boom" as demand increases in developing markets, primarily in Asia, he said. All commodities will be supported by the weakening dollar, which is losing value because Federal Reserve Chairman Ben S. Bernanke is "printing money" by buying Treasuries in an effort to shore up the U.S. economy, Rogers said."Paper money is made of cotton, and I'm long cotton, by the way," Rogers said. "One reason I'm long cotton is because Dr. Bernanke is out there running the printing presses as fast as he can."Rogers said he doesn't own shares in U.S. companies and is short U.S. long-term treasury bonds. The Chinese renminbi may provide "almost sure profits over the next five to 10 years," he said."In the future, it's the stock broker who's going to be driving the cabs," Rogers said. "The smart stock brokers will learn to drive tractors, and drive them for the farmers, because the farmers will have the money."