Best of the Week
Most Popular
1.UK General Election BBC Exit Polls Forecast Accuracy - Nadeem_Walayat
2.UK General Election 2017 Seats Final Forecast, Labour, Conservative Lib-Dem, SNP - Nadeem_Walayat
3.UK General Election 2017 Forecast: Conservative 358, Labour 212 Seats - Nadeem_Walayat
4.Theresa May to Resign, Fatal Error Was to Believe Worthless Opinion Polls! - Nadeem_Walayat
5.UK House Prices Forecast General Election 2017 Conservative Seats Result - Nadeem_Walayat
6.The Stock Market Crash of 2017 That Never Was But Could it Still Come to Pass? - Sol_Palha
7.[TRADE ALERT] Write This Gold Stock Ticker Down Now - WallStreetNation
8.UK General Election Results Map 2017 vs 2015 vs Opinion Polls - Nadeem_Walayat
9.Orphaned Poisoned Waters,Severe Chronic Water Shortage Imminent - Richard_Mills
10.How The Smart Money Is Playing The Lithium Boom - OilPrice_Com
Last 7 days
Gold Back With A Vengeance As Bitcoin Bubble Bursts - 26th Jun 17
Crude Oil Trade & Nasdaq QQQ Update - 26th Jun 17
Gold and Silver Ongoing Consolidation May End Soon - 25th Jun 17
Dollar May Become “Local Currency of the U.S.” Only - 25th Jun 17
Sheffield Great Flood of 2007, 10 Years On - Unique Timeline of What Happened - 24th Jun 17
US Stock Market Correction Could be Underway - 24th Jun 17
Proof That This Economic Recovery Narrative is False - 24th Jun 17
Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - 24th Jun 17
Gold Summer Doldrums - 23rd Jun 17
Hedgers Net Short the Euro, US Market Rotates; 2 Horsemen Set to Ride? - 23rd Jun 17
Nether Edge By Election Result: Labour Win Sheffield City Council Seat by 132 Votes - 23rd Jun 17
Grenfell Fire: 600 of 4000 Tower Blocks Ticking Time Bomb Death Traps! - 22nd Jun 17
Car Sales About To Go Over The Cliff - 22nd Jun 17
LOG 0.786 support in CRUDE OIL and COCOA - 22nd Jun 17
More Stock Market Fluctuations Along New Record Highs - 22nd Jun 17
Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - 22nd Jun 17
Green Party Could Control Sheffield City Council Balance of Power Local Election 2018 - 22nd Jun 17
Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle - 22nd Jun 17
Steem Hard Forks & Now People Are Making Even More Money On Blockchain Steemit - 22nd Jun 17
4 Steps for Comparing Binary Options Providers - 22nd Jun 17
Nether Edge & Sharrow By-Election, Will Labour Lose Safe Council Seat, Sheffield? - 21st Jun 17
Stock Market SPX Making New Lows - 21st Jun 17
Your Future Wealth Depends on what You Decide to Keep and Invest in Now - 21st Jun 17
Either Bitcoin Will Fail OR Bitcoin Is A Government Invention Meant To Enslave... - 21st Jun 17
Strength in Gold and Silver Mining Stocks and Its Implications - 21st Jun 17
Inflation is No Longer in Stealth Mode - 21st Jun 17
CRUDE OIL UPDATE- “0.30 risk is cheap for changing implication!” - 20th Jun 17
Crude Oil Verifies Price Breakdown – Or Is It Something More? - 20th Jun 17
Trump Backs ISIS As He Pushes US Onto Brink of World War III With Russia - 20th Jun 17
Most Popular Auto Trading Tools for trading with Stock Markets - 20th Jun 17
GDXJ Gold Stocks Massacre: The Aftermath - 20th Jun 17
Why Walkers Crisps Pay Packet Promotion is RUBBISH! - 20th Jun 17

Market Oracle FREE Newsletter

The MRI 3D Report

Jim Rogers Gold Price Forecast and the Agriculture Boom

Commodities / Gold and Silver 2013 Apr 18, 2013 - 04:40 PM GMT

By: Money_Morning

Commodities

Garrett Baldwin writes: In October, legendary Quantum Fund manager Jim Rogers made a prediction about gold prices that left many gold bugs shaking their head.

Although Rogers admitted he wasn't going to be selling his hard assets, he predicted further consolidation and a near-term correction in the metals markets.


Predicting this short-term downturn, Rogers cautioned that gold had been on the rise for twelve consecutive years, a streak that was unparalleled. That was then.

This week, his prediction rang true as gold and silver prices took another huge hit. In the aftermath, gold prices are now down approximately 30% since reaching an all-time high in August 2011.

According to Rogers gold prices have even further to fall.

"I have repeatedly babbled about $1200-1300/oz., but that is just because that would be a 30-35% correction which is normal in markets," he told Business Insider this week. "But I am a hopeless market timer/trader."

Rogers cites four key forces fueling the current gold sell-off:

■India raised its gold import tax from 4% to 6%, which has limited the demand for gold in the world's largest market for the metal.
■Technical analysts and chartists have been arguing that prices would fall.
■The collapse of the Bitcoin over the past two weeks coincides with many of the digital currency's owners also owning gold.
■Finally, Rogers believes Germany's demand that Cyprus sell part of its holdings in gold to alleviate debt concerns added to the sell-off.

Naturally, Rogers can bask in the moment. His gold call was right on the money.

But it's the second part of his October recommendation that deserves attention as well. Although it didn't receive as much fanfare as his gold call, Rogers nailed another one that day.

At the same time, he was warning on hard commodities like gold and silver, he also said there was a huge opportunity in agriculture and soft commodities.

Now for anyone who has been paying attention, the agriculture sector remains a prime area for growth in a world where glaring fundamentals point to serious problems on the horizon in keeping people fed.

A State of Concern for Global Agriculture Markets
In fact, Rogers has been on a one-man crusade to raise alarm bells about the deteriorating state of the agriculture industry and has issued a call-to-arms for more individuals around the United States to study agribusiness.

Although grain prices did slip this week during the sharp commodity sell-off, agricultural commodities remain far better positioned to recover in the near term. Aside from the obvious observation that investors can't "eat gold", grain prices are supported by far greater economic forces than hard metals. All of them point toward rising prices.

Rogers' basic thesis has been quite simple: Demand is far outpacing food supply, farmers continue to retire around the world, and global inventories and feed stocks are now hovering at historic lows.

Add in lingering concerns about last season's crippling drought and potential food shortages in the future, and it's easy to understand why corn was a top performing asset in the second half of 2012 and will likely remain so for the better part of the decade.

And it's not just investors pointing out why food prices are likely heading north.

According to the United Nations, the world population is set to grow to nearly 9 billion by 2040, up from 7 billion today.

But the real driver of food demand stems from rising global wages and a three-billion-person expansion of the global middle-class, which points to exponential growth in demand for food.

According to U.N. estimates, the world will require a 50% increase in food production, a 45% increase in energy, and a 30% increase in water. But while these problems might scare the average person, such concerns have long been alleviated by the agricultural sector's resilience and unrivaled ability to innovate in order to meet new challenges.

And there are more ways to make money off these trends than just buying farmland.

The Best Way to Play the Ag Boom
It's not just grain production that offers investors an opportunity to make money off the land.

The agricultural sector is highly consolidated with specialty firms that emphasize technological innovation in order to meet the booming rise in demand for food.

One company poised for strong growth over the next decade is Archer Daniels Midland (NYSE: ADM).

A global pioneer in commodity production and value-added services, ADM's stock is up 17.5% since the start of 2013 and currently pays a 2.36% yield. The company owns ADM Alliance Nutrition, a leading producer of livestock feed ingredients. And it's the animal nutrition industry that's taking center stage with meat demand on the rise.

Companies with expertise in animal nutrition will be critical players in servicing the booming Asian markets where dietary transitions and a rising middle class has led to an explosion in demand for pork and other meat products.

More than half of the world's pigs-approximately 476 million-are in China, and pork production is now so central to the Chinese diet, that the government has created a strategic pork reserve to accompany its strategic reserves of oil and grains

But for those just looking to enter agriculture based on the knowledge and enthusiasm of Jim Rogers, look no further than the Rogers International Commodity Agriculture ETN (NYSE: RJA).

The Index represents 20 agricultural commodity futures contracts, and is comprised of commodities consumed in the global economy. The index's largest allocations are dedicated to corn, wheat, cotton, and soybeans.

The index is poised to capture growth in the coming decade, as global demand is being predicated by emerged economies like Brazil and China.

No, you can't eat gold. But you can buy invest in a farm and capture profits as demand outpaces supply in the global agriculture markets.

If you’re one of the investors who got slammed as gold plummeted this week, don’t panic. We asked our trading expert Shah Gilani what’s next for the yellow metal in the following report: Investing in Gold: Here's What to Do Now

Source :http://moneymorning.com/2013/04/17/jim-rogers-prediction-on-gold-prices-was-only-half-of-the-story/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife