Jim Rogers predicts that commodities boom could last 20 years

Jim Rogers predicts that commodities boom could last 20 years
Jim Rogers, the bullish commodities investor, has predicted that demand for raw materials will outstrip supply for the next two decades, fuelling an extended boom.

By Rowena Mason
Published: 11:07PM BST 08 Oct 2009


Jim Rogers predicts that commodities boom could last 20 years. The chairman of Rogers Holdings, based in Singapore, believes the weakness of the dollar will underpin a flight towards commodities.

"I don't see any adequate supply situation in any commodity market over the next decade or two," he said. "The commodities boom is not over and the bull market has several years to go.


"Commodities are the best place to be, if you ask me, based on supply and demand."

Oil could reach between $150 and $200 per barrel, as known reserves begin to decline.

Mr Rogers believes that "unless something happens", crude oil will run out in 15 to 20 years. Although plenty of large oil discoveries have been made lately, the commodity is increasingly hard to extract from the ground.

"The supply of everything continues to decline," Mr Rogers said.

"If the world economy recovers, commodities will do the best, because supply is being restricted. If the world economy does not recover, commodities will still be the best place to be, because governments are printing huge amounts of money."

Mr Rogers, the author of Adventure Capitalist and Investment Biker, said he has not invested in equities apart from in China for the last two years.

He first staked his reputation on announcing the start of a global commodities rally in 1999. The cost of raw materials has risen around 36pc over the last decade.

His comments came as Alcoa, the US aluminium producer, posted surprise profits, boosting mining stock on both the New York and London exchanges.

The company forecast an 11pc increase in demand during the second half, almost entirely fuelled by China.

Global stockpiles of commodities monitored by the London Metal Exchange have surged this year on lower industrial demand during the recession, but analysts believe the market may now be stabilising.

Oil prices broke the $70 mark in the US, rising $2.12 to $71.69 a barrel, while Brent crude climbed $2.50 to $70.54 in London, supported by the weak dollar.

http://www.telegraph.co.uk/finance/newsbysector/industry/6276453/Jim-Rogers-predicts-that-commodities-boom-could-last-20-years.html