Jim Rogers is known for his successful investments in the past decades but also for his very explicit (bullish) statements about investing in commodities the last decade.
On Friday 29th of June, he commented on the outcome of the European Summit that took place on Thursday and Friday. During an interview on CNBC he stressed again what he has been telling the world for several years now : “the solution for too much debt is not even more debt”. Jim Rogers clearly does not believe in the decisions that were announced after the European Summit. He had to say that “we had 20 summits in the past years and every time they announce something, the markets first rally but then go back down”. So he thinks we are seeing more of the same now, saying “it will happen again”.
Jim Rogers expressed yet again the need to own real assets (gold, silver and other commodities). At the moment of the interview, commodity prices have been surging. Gold was up almost 3%, while Silver rose more 4%.
Earlier this week, the legendary investor stated that “the likelihood of more central banking action around the world is bullish for silver” and adding to it “of all the precious metals if I had to buy just one, it would be silver.”
Jim Rogers warns, just like a lot of other investment or economic experts, that we are in the midst of the creation of yet another bubble. This time, governments around the world are working hard to create a debt bubble, which has its origin in the artificial low interest rates (set by governments). In the US for example, we have a prolonged period of a Zero Interest Rate Policy (which will go undoubtedly in the history books with the acronym ZIRP). That’s really an exceptional event in history. The financial system is being inflated in an artificial way. This is wat Jim Rogers writes on his blog: “I’m absolutely convinced we’ll see higher interest rates. Of course, I was convinced of that last year but rates went down. Bubbles always go longer than most people expect and higher than people expect. That’s the definition of a bubble. I have no idea how much longer it will last but I’m not playing.”