The price of silver took a huge hit over last week (in my view, that just makes it cheap — I bought a bunch yesterday), and is only now starting to bounce back up slowly.
Jim Rogers, one of my all-time investing heroes and someone I study constantly, has been talking a lot in the last few days with interviews at Investment U and at The Street. In both interviews, he gave some fantastic investing advice just like usual.
To quickly summarize, the billionaire explained why gold, silver, and commodities like soybeans and wheat are all still very good buys right now because the economy is still inflating, the government is still regulating, and there probably won’t be much economic relief for another half decade or more. He also gave more detailed analysis that is explained and quoted below.
Silver and Gold are Still Good Buys
As you probably know, Jim Rogers is one of the most influential investors in the world, because he’s essentially been right about everything over the last decade. He’s been right about China, right about the US doing everything wrong to fix the economy, and right about the commodities bull market. Being right has made him billions of dollars.
Here’s what he recently said about the commodities plunge, as reported by Beacon Research:
“Silver went down a great deal but if you raise margin requirements 150%-200% you would expect there’s something to collapse. It’s good for the market as far as I’m concerned. Silver especially needed a set back and a consolidation. I’m delighted to see everything.”
As we reported a few days ago, silver futures are still getting messed with by the CME, meaning the current correction probably isn’t over. Either way, you might consider buying silver online like I am currently.
Want to Get Rich? Become a Farmer.
Rogers also repeated some of his most famously held beliefs, namely that in the next few decades, farmers are going to become extremely rich — and that everyone should consider investing in farmland. His reasoning is essentially listed below, and it’s pretty obvious, common-sense reasoning.
- Food demand will increase. The world population is still ballooning – and everybody has to eat.
- Food production will decrease. There are fewer farmers now. There’s less appropriate farmland.
- Food prices will increase. Food prices are already starting to explode — that’s just going to get worse.
The reasoning is pretty simple, and, if it all happens according to his predictions, then farming becomes very profitable. The more the gap between demand and supply increases, the more the people in the agriculture industry are going to make money.
If you own the land, you’ll see a boom in your investment — and not just a net-worth kind of boom, but an actual boom in income from your agricultural properties.
Rogers is currently gobbling up farmland in Brazil and Canada, though I’m not entirely sure if he’s buying up small portions of land or one huge tract of land in each.
Jim Rogers also is pretty opinionated about where he thinks the price of gold is headed — in his view, $2,000 gold is simply going to happen. Seeing a 30% increase in the price of gold is extremely possible — if not inevitable — in the next few years.
I’m a huge fan of Jim Rogers and his old investing partner George Soros, and will be covering anything they say of substance in the news here at Live Gold Prices, so make sure to subscribe to receive the updates.
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