Showing posts with label jim rogers. Show all posts
Showing posts with label jim rogers. Show all posts

Monday, February 18, 2013

Gold - Long Term Chart Says Buy Now!

Since 2001, Gold has been behaving very nicely and stayed in a narrow range in its logarithmic chart. So If Gold has gone down for an extended period of time and suddenly drop at level not seen for a while, or alternatively if it has gone up for a long time, and makes new highs, I like to have a look at the logarithmic chart since the bull market started in 2001, and see is we've hit the higher or lower bound of the trend
(Source: Boursorama)
Guess what, we've just hit the lower bound last Friday. Assuming long term fundamentals remain the same (debt issue, money printing...), Gold is likely to go up over time, and this could prove to be the right time to buy. The 14-day RSI is at 30 (and hit this level 3 times) which means Gold is oversold short term. So it looks like a long and short term buy at this level.

The only thing that bothers me is that is has mostly corrected through time, and not really through price (it only lost 15%) which means it keep it amazing record of 12 positive years. Which is probably why Georges Soros recently lightened his position, and Jim Rogers said he would not buy at those levels. however, Marc Faber still continues to advice buying every month.

The Gold chart may also indicate it's a good time to buy Silver which has gone down by over 40% since the $50 it hit in 2011, but it's still not technically oversold (yet).

Friday, November 16, 2012

5 New "Jim Rogers" Commodities ETNs: RGRC, RGRA, RGRE, RGRP and RGRI

This week, Royal Bank of Scotland (RBS) has added five new ETNs to its offering, giving exposure to commodity indexes created by Jim Rogers:
  • RBS Rogers Enhanced Commodity ETN (RGRC)
  • RBS Rogers Enhanced Agriculture ETN (RGRA)
  • RBS Rogers Enhanced Energy ETN (RGRE)
  • RBS Rogers Enhanced Precious Metals ETN (RGRP)
  • RBS Rogers Enhanced Industrial Metals ETN (RGRI)
RGRA is the ETN equivalent to RJA ETF, RGRC is the equivalent of RJI ETF and RGRE is equivalent to RJN. ETN and ETF are structured differently, but I assume the 3 new products I've just mentionned should provide similar returns to the existing ETF, unless there are important ost differences between managing those 2 different types of financial products.

The real novelty is with RBS Rogers Enhanced Precious Metals ETN and RBS Rogers Enhanced Industrial Metals ETN, which as far as I know do not have equivalent ETF products.

Thursday, July 5, 2012

Why You Shoud be Bullish on Crude Oil

With a recession now more and more likely, common sense should say to stay out of commodities, including crude oil, until the storm is over. However, in the case of commodities, the best time to buy is when there is a glut, and sell when there a price spike due to a shortage (which seems to have started with agricultural commodities recently).

Crude oil is no exception, and depending who you listen to, break even prices for new oil fields range between 70 to 90 dollar per barrel, which means that if the price goes below 70 dollars, companies will stop investing to add capacity and in the long run, prices will have to go lower. It's almost a no brainer.

Another long term advantage with crude oil is that global reserves are declining, and it looks like we may have reached conventional peak oil in 2005. At some point, new technologies such as oil shale and fracking, as well as a better use of natural gas, will eventually put a ceiling on how high crude oil price will be. In the meantime, it's probably wise to prudently buy crude oil between $70 and $90, and buy aggressively if it falls below $70. As long as you don't use leverage you should be just fine.

Jim Rogers has recently been interviewed on Oilprice.com, where I gave his outlook for crude oil.
Here are the key points:
  • Crude oil is in a correction, because of the economy, Saudi Arabia might try to help Obama get re-elected, and JP Morgan may have unauthorized positions they're having to liquidate.
  • $40 crude oil is possible, but that would just setting up crude oil for an even more bullish scenario for the duration of the bull market.
  • If natural gas stays this low compared to oil prices, it does give an incentive to develop natural gas powered vehicles.  Is it going to end the use of oil, combustion engines? Probably not any time soon. Someday it could, but someday is a long way away.
  • Iran and Iraq appears to get closer together which could eventually have an effect on the market
  • He does not know enough about shale gas to comment about it, but said it won't have a serious impact for years to come.
If crude oil is such a good long term investment opportunity, how do we invest into it?

First, unless you plan to trade for a few weeks or months, do not buy USO, it's a terrible long term invesmtent due to high cost and contango effect. You could invest in futures, but it's not for everyone. They best way could be to invest in companies such as TOTAL or BP for the next few years, but in the end due to declining reserves, and demand destruction, profits may fall even if prices go up. Instead of only buying crude oil, you may consider investing in an ETF tracking commodities index such as RJI. Since other commodities are also indirectly subject to the price of crude oil, RJI has about 40% crude oil exposure (WTI and Brent) and seems to suffer from less decay.

Friday, June 1, 2012

Jim Rogers on Gold, the Dollar, Agriculture, the US economy, 2013 Outlook and Government Statistics

Jim Rogers is interviewed by NewsMax on the 1st of June 2012.

First, he explains his views on the Eurozone crisis (particularly Spain and Greece) and the dollar: a terribly flawed currency, and certainly not a safe haven. Yet he owns the US dollar, because investors still perceive it as a safe haven.

Then he explains why he won't sell his Gold, and on the contrary expects to buy more, much more if it goes down further.

Switching to a typical subject for Jim Rogers: Agriculture. He explains that the agriculture sector will be the place to be in the decades ahead, especially as we run out of farmers.

He gives his outlook for 2013 and it's not pretty. This year should be OK, but a recession will strike hard in 2013 or in 2014 latest. Since the debt is so staggeringly high now, the next crisis will be worse, and recommend the hosts that if they are not worried about 2013, please — get worried.

Jim Rogers explains government statistics such as unemployment and inflation are massaged to look better. The US government is likely to abuse statistics at least until the presidential elections in November.

Finally, he sees the US Economic situation as being  very, very dire because at the beginning of next year, tax cuts are set to expire while automatic spending cuts,  are set to kick in at the same time, a combination dubbed by Wall Street as a “fiscal cliff.” And he says neither Romney or Obama will be able to fix the economy and they don't understand what's going on in the world.


Thursday, May 10, 2012

Jim Rogers: Not a Good Time to Buy Stock, Might Sell Euros

American investor Jim Rogers in Madrid (Spain)...
Jim Rogers is interviewed by Henry Blodget on Business Insider on the 9th of May 2012.

Some people think it's the best time to buy stock in 50 years, but Jim Rogers disagrees. He does not own stock in the US, and heven have some shorts, and does not see how the US stock market could double within a few years as Dr. Jeremy Siegel claims, because the economy is in bad shape and will remain so for some time.

Henry Blodget then asks him if housing has bottomed, and here Jim Rogers agrees that real estate may have bottomed in some markets, and there may be good opportunities especially in the country side, but other places like Massachusetts have probably to go further down.

Switching to currencies... Although he's very pessimistic over the long term, he owns the US dollar, and might sell his Euro holdings because albeit Europeans have implemented austerities measures, they haven't managed to reduce their debt.

As previously stated, he expects Gold to correct further as it has gone up for 11 years in a row, but he will certainly buy if it goes down, and claims the Gold bull run is far from over and will probably end in a bubble, a Gold mania.

Finally, his views on crude oil haven't changed, the surprise is going to be how high it goes as reserves are going down, although a temporary correct could occur in case of serious crisis (e.g. Spain defaults on its debt).

Wednesday, May 2, 2012

Jim Rogers: The Next Recession (2013,2014) Will Be Much Worse

Jim rogers is interviewed on Business Insider by Henry Blodget on May 2, 2012.

He explains that because of the increase in debt, the next economic downturn will be much worse. We had a recession in 2002, then 2008 and the next one cannot be far away and should probably  occur in 2013 or 2014.

There is a lot of good news currently because we are in an election year and the government and the federal reserve are spending a lot of money, and the government statistics are massaged to make the economy look better than it really is. But in reality, the situation is getting worse, because the debt is getting much much worse.

Most people agree that the US is in relative decline against the rest of the world, but Jim Rogers also thinks the US in absolute decline as it is the larger debtor nation in history, and the country is over extended militarily over the world.

He concludes on a positive note by saying he's very bullish on agriculture in the US, and farm land is nowhere near a bubble yet.

Monday, April 9, 2012

Jim Rogers: How to Invest in the Agriculture Sector in China

Jim Rogers is interviewed by China Daily on the 9th of April 2012 where he gives a few investment ideas for the Agriculture sector in China from becoming a farmer to owning commodity futures.

Friday, March 23, 2012

Jim Rogers on Crude Oil, Gold, Silver and Agriculture Commodities

Lots of media appearance by Jim Rogers this week. Here's an awesome interview by VisionVictory, where they discuss crude oil, precious metals, commodities, the future of the US dollar and potential civil unrests.

Jim Rogers: Buy Chinese Shares & Gold on Pullbacks

American investor Jim Rogers in Madrid (Spain)...

Jim Rogers interview on CNBC Fast Money on the 23rd of March 2012.

He said he hoped that the Chinese market collapses so he can buy (more) Chinese shares and sees a global slowdown within 1 or 2 years. He also said the would buy more and more Gold as the price falls. He would buy Gold very aggressively would it fall to the 1200-1300 USD range. He's also short US treasuries even if he admits it has not worked so well to date.

Tuesday, March 20, 2012

Mike Maloney Interviews Jim Rogers

Mike Maloney, of goldsilver.com, interviews Jim Rogers on the 20th of March 2012. They discuss about  about markets, Bernanke, the East/West Cycle and more...

Wednesday, February 22, 2012

Jim Rogers: Gold Going Much Higher In This Decade

ET Now interviews Jim Rogers on the 23rd of January 2012.

They asked him about commodities following the monetary easing by China, and he replied that natural resources such as silver, rice and natural gas usually benefit during periods of massive money printing. If the world economy gets better, there will be shortages, if it does not, they will print money. He owns more precious metals than base metals however.

If there is a conflict with Iran, everything will go down initially, except maybe crude oil, but this would be positive for Gold in the long term. He sees many people in Washington want to do something about Iran, and it looks like something will happen even though it's sheer madness.

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Tuesday, January 31, 2012

Jim Rogers: Politicians Want To Fool Us This Year

Jim Rogers is interviewed by CNBC on the 30th of January 2012.

They firstly talk about bank bonuses, then about prospects for US and Europe in 2012. Jim Rogers is not worried about the Euro this year, because of the elections around the world, which will lead to more printing by the central banks and more spending by politicians.


Monday, January 16, 2012

Jim Rogers on Europe Ratings Downgrade

Jim Rogers interview on Russia Today on 16 January 2012 where he discusses the recent S&P downgrade of many European countries and what the future may hold if Europe breaks up.


Friday, January 13, 2012

Jim Rogers: Short Emerging Markets, Long Base Metals

Jim Rogers is interviewed by ETNow (India) on the 13th of January 2012.

He explains he sees the markets faring relatively well in 2012 because there are 40 elections in the world this year and politicians will spend money to get reelected. However, we may have a serious crisis coming in 2013 or 2014. In 2012, he seems particularly bullish on base metals. He is still short on emergent markets such as Indian, Brazil and Indonesia because they went up too much, too fast.

When asked about Gold, he says he owns it, do not plan to sell, but do not plan to buy for now as Gold has been in a bull market for 12 years without yearly corrections.

Monday, December 26, 2011

Jim Rogers: Central Banks and Governments are Ponzi Schemes

Jim Rogers has been interviewed on BBC Radio on the 26th of  December 2011 where he explains that the current flow of money between the governments and central banks around the world is a "ponzi scheme, a fraud and a sham" and everything is going to get much worse in the end.


Here's the transcript of the interview:


Jim Rogers: Martin, it's very serious. America is the largest debtor nation in the history of the world and it's getting bigger and bigger by leaps and bounds at the rate of over $1 trillion a year. And in Europe you have several bankrupt countries and no one is dealing with the problem. If you look at the projections for all the European countries, none of them have reduced debt a year or two or three from now. So, this situation is serious and getting worse.
Martin Webber: Thinking back to the mid-1990s, capitalism seemed ascendant, western capitalism had triumphed over communism, economies were growing, stock markets were growing. Who do you blame for the fact that we have ended up in this mess?
Jim Rogers: Well, essentially it's governments and central banks; especially in the US they just kept spending money and the central bank just kept printing money. But there are several culprits.
Martin Webber: Who else apart from these authorities?
Jim Rogers: The government of United Kingdom, the central bank in the United Kingdom, the governments in places like Greece which used phoney bookkeeping, but also even Italy and France and Germany. They all started using phoney bookkeeping. They knew that the other countries were using phoney bookkeeping and they all said, oh it's okay, everything will be okay in the end.
So, the central banks and the governments were going hand-in-hand and spending money they did not have. Now, that's wonderful. It's great. It can cause huge growth. As you just pointed out, for 15 years you had great growth. But eventually, somebody has to come up with and pay for it, or eventually you just run out of other people's money.
Martin Webber: What seems to be going on at the moment is that central banks are creating money, lending it to banks, who are then lending it to governments in terms of buying their bonds because the private investors are no longer doing that. So you have got government owned institutions effectively buying government bonds. People don't seem to really understand what on earth can be going on?
Jim Rogers: It is a recipe for disaster. I am glad you pointed it out because there is nothing more authoritative than the BBC. It's a Ponzi scheme, it's a fraud, it's a sham and we are all going to have to - we are already starting to pay for it, Martin. It's going to be much, much worse in the end.
Eventually one of two things has to happen. We have to get together now and ring-fence the problem and figure out how we are going to survive and start over. Or, in a year or two or three, the market is going to say, no more money, we won't put up any more money. And then the whole system collapses, then you have gigantic chaos, social unrest, governments failing, civil war - huge mess.
Martin Webber: Let's try the more optimistic scenario. You say it is possible still to get a grip on this problem, what are the measures that need to be taken right now then to avoid the other scenario of civil war?
Jim Rogers: Well, at the moment some governments have credibility, Germany for instance still has credibility. And if they all got into a room together and Mrs. Merkel said, okay, you guys are going to fail, you have failed, and now you are going to fail. We are going to hold these banks, these companies up. We are going to make sure they survive. We are going to make sure bank deposits are okay. We are going to make sure checks continue to clear and the system will survive. Some of you are going to take huge losses and huge pain, but then we start over.
It would be a terrible two- or three-year period, Martin, but then the system could survive and we could rebuild after the people who have made mistakes take the losses. That's what capitalism is supposed to be all about. If you fail, you fail.
Martin Webber: And what are the mistakes then? Is it that the people who bought government bonds of France, Italy and all the other countries are going to have to take losses?
Jim Rogers: Absolutely. The banks who made these loans, and the bondholders who bought these loans, and the stockholders who own stock in these banks. They were making mistakes. They are all going to have to take huge losses. Now you are going to say, that's very painful, that's bad.
Well, I will remind you Martin that in the early '90s, Scandinavia had the same problem. They did exactly this. They ring-fenced everybody, many people failed, there was horrible pain, but after three or four years Scandinavia has been one of the great growth areas of the past 15 years or so. That's the way the system is supposed to work.
In Japan in the early '90s, they said nobody will fail. Well you know they have lost two decades in Japan. You know about zombie banks. You know about zombie companies. The Japanese way doesn't work. It is not going to work in America or Europe.
Martin Webber: So we got a situation there where people invested in banks lose money, presumably people with pensions who have investments in these banks lose money, and government bonds lose money too. But the politicians have a much nicer sounding solution it seems, which they have just come up with, which is that the European Central Bank creates money, lends it to the IMF and the IMF then lends it back to them. Sounds much nicer, doesn't it?
Jim Rogers: It sounds wonderful, doesn't it? But it is not based on reality. It's based on "Never Never Land." It's based on the "tooth fairy." Somebody has got to come up with real money somewhere along the line and payoff real debts somewhere along the line.
Martin Webber: But isn't that possible, that if you are the government, you can create as much money as you want because it's your money?
Jim Rogers: You certainly can. You can debase currency, and history is replete with governments that have debased their own currency and ruined their own currency for hundreds of - well for thousands of years it has been going on. You can do that and everything is okay for a while, but eventually you have inflation, you have high interest rates, you have currency turmoil, you have people no longer trusting each other to invest with each other, and then you have the end of the system, and we have chaos, and it starts over again.
Martin Webber: Is that not the more likely scenario in that the politicians never like to tackle problems. They are always interested in the next day's headlines. Isn't it more likely they will find yet another ruse to put off the day of reckoning?
Jim Rogers: Absolutely. You are a very insightful observer of the passing scene. That's exactly what they are going to do. If a politician ran on the platform, oh my gosh, we have got to take a lot of pain. Even if he won, Martin, which is very unlikely, but even if that politician won, after six months or a year or two of serious pain, he will be either thrown out or assassinated or something would happen because people would say this is too much pain. We didn't know you meant it was going to be this bad. Let's get out of this.
Martin Webber: Now many people say it's the euro that's at the heart of this crisis. They are calling it the "euro crisis." Is that how you see it?
Jim Rogers: No, absolutely not. It's not the euro. The world needs the euro or something like it to compete with the US dollar. We need another sound currency. The eurozone as a whole is not a big debtor nation. The eurozone has some debtor problems, some debtor nations, debtor states, but it's not a big, big problem. The euro is good for the world. It needs to work.
Martin Webber: Do you think in the past that political leaders were stronger, perhaps were less influenced by short-term considerations, had a greater feeling for the common good, perhaps the people themselves had a greater community spirit and would actually be happier to take austerity to understand you have to live within your means. Do you think in a way it's not just the political class, this is something at issue in society as a whole?
Jim Rogers: That's good observation, yes. We did have more discipline and more understanding in the past few decades, but that's partly because of the history of those decades. We remembered the First and Second World War. We remembered the Great Depression. We remembered what happened when you got too leveraged and couldn't pay your bills. We knew what happened when you debased your currency.
But now of course, since the Second World War, we have had two or three generations grow up who don't remember all of that, haven't read their history, politicians who didn't know anything about history at all and don't know anything about economics at all. So everybody thinks there's a free lunch.
Martin Webber: Do you think the media is to blame?
Jim Rogers: Well, the media are the same ones, Martin. I mean, you and everybody else grew up went to the same schools, had the same teachings and had the same period of good times. Since the Second World War, things have been pretty good in most of the western world, the developed world anyway, and we all grew up thinking, well this is the way the world is and it has been that way. But that's not the way the world has been for the past few thousand years.
Martin Webber: We have had this "Occupy Wall Street" movement emerging. Do you have any sympathy with any of the things that they are saying?
Jim Rogers: Well, I do have sympathy with the fact that they are saying, we shouldn't have bailed out the banks. I would have let all those banks go bankrupt, as you've heard me say before. But beyond that I don't have too much sympathy with them. You know, we all want a free lunch. I would like somebody to pay my bills too. I would like somebody to take care of me the rest of my life too.
Listen it's outrageous that the government took the money and saved the banks. Absolutely, they are right about that. It's outrageous, totally outrageous that governments went and bailed out some banker so they could keep their Lamborghinis and their summerhouses. But beyond that, I don't have too much sympathy with them.
Martin, whenever there are hard times, people look for somebody to blame. And they always blame the financial people, they always blame foreigners, and they always blame reporters. They always say, well if the reporters didn't write about this problem, we wouldn't have a problem. So be careful. Financial types get blamed first, the foreigners get blamed second, you are next.
Martin Webber: Okay. I am prepared.

Wednesday, December 21, 2011

Jim Rogers and Jeremy Gratham: Bonds are a Terrible Investment

Jim Rogers recently told Fox Business Network that he plans to short US bonds in the future and to buy them now would be a “terrible mistake”.

"I am not short bonds yet but I plan to be short bonds," he said. "If the world economy gets better, you are going to make money in commodities because that is where the shortages are. If the economy does not get better, they are going to print money and when it does get better, you better own commodities, such as silver and rice."

Rogers warned it would be dangerous to own US T-bills now but admitted he had been burned a few times recently when he attempted to short the asset class.


Yesterday, GMO (Jeremy Grantham) released their 7-year forecast, and all bonds (except Emerging Debt) are expected to provide negative returns every year (on aggregate) over the next 7 year.

Here are GMO forecasts:
  • US Bonds: -1% per year
  • International Bonds: -2.1% per year
  • Emerging Debt: 1.5% per year
  • Index Linked Bonds: -1% per year
  • Cash: -0.7% per year

The best 2 investments over this 7 years would be international large caps (6.4%) and emerging markets (6.5%).

Tuesday, December 20, 2011

Jim Rogers: North and South Korea may Merge Within 5 Years

Following the death of Kim Jong-il this week, Jim Rogers was asked his views on North Korea and South Korea. He expects them to merge within 5 years in what would make a strong Korea with cheap labor and natural resources in the North and good management in the South.


You can invest in South Korea via iShares MSCI South Korea Index (EWY) or IQ South Korea Small Cap ETF (SKOR). There is currently no easy to invest directly in North Korea, especially due to US restrictions on North Korea.

Wednesday, December 7, 2011

6 Video Interviews With Jim Rogers

TheStreetTV has uploaded 6 short video interviews with Jim Rogers on the 6-7 December 2011.

2012 Investment Strategy


Fed Is the Worst Central Bank


Own Japanese Stocks for 2 to 3 Years


Adam Smith for President?


China's #1 Problem


Euro Will Survive 2012

Saturday, November 19, 2011

8 Investment Ideas for 2012

2012 is coming soon, and we can start to consider some investments ides for next year.
2012 is likely to be cursed with the same problem as 2011 with western debt crisis in Europe, the US, Great Britain and possibly Japan. As now, there will be a "fight" between market forces which want to liquidate the debt and the central banks & governments who want to print money to avoid deflation at all cost. There are also talks about a debt bubble in China, but their citizen and government have savings and reserve, so although they will suffer as well, they should be OK.

We know that the US, UK and Japanese central banks have done quantitative easing, and will probably do it again, although there is political pressure not to do so. The ECB has not (officially) done quantitative easing yet. The US and UK are in the worst possible position since both their government and citizens are heavily indebted and have trade deficits. The Japanese government has a lot of debt, but has a current account surplus and not much private debt. Europeans are in the middle.

In the next few years, peak oil (and peak everything) will also have a serious impact on your investment, so I'll also give some longer term investments ideas to try to preserve capital.

Here are eight investment ideas I have for 2012 in no particular order:
  1. Rice and agricultural commodities:

    I like rice for 2012 as last year, it has not performed very well and there is currently a global glut due to Indian rice production that largely offsets the issues due to the floods in south east Asia. For individuals investors, it relatively tricky to invest in Rice. For people who have access to the French stock market, you can buy RICEF PI OPENN (FR0010606509 - 1377N). Read Investing in Rice for other options and more details.

    Longer term, agricultural commodities should perform well due to rising global population, aging of farmers worldwide, reduction of arable land and possibly massive money printing by central banks.

    The good news is that there are plenty of options to invest in agricultural commodities via ETF such as DBA, RJA and ELEMENTS Rogers Intl Commodity Agri ETN (RJA), PowerShares DB Agriculture (DBA) and iPath DJ-UBS Agriculture TR Sub-Idx ETN (JJA). If you prefer agricultural stocks, you could invest in Market Vectors Agribusiness ETF (MOO)

  2. Crude Oil

    This is both a short term and long term investment. Many pundits explain that today, oil costs around 70 USD per barrel to produce. For 2012, if you see crude oil (WTI) go below 70 USD, you can consider investing massively in the commodity, even though it may go much lower. In that case, production will slow considerably until prices go above 70 USD (and more) again.

    Since peak oil is inevitable and the IEA says reserves are declining by above 6% per year, so we'll have a supply problem even if the economy is in recession and demand collapses. A US military report also says that surplus may disappear in 2012, which serious shortage occurring in 2015.

    First, I'll explain how not to invest in crude oil namely United States Oil (USO), iPath S&P GSCI Crude Oil TR Index ETN (OIL) and the likes as they have an horrific decay and their target is zero after numerous reverse splits. I'm not kidding. If you invest in a commodity linked ETF always try to compare it with the tracked commodity for a period of at least 2 or 3 years. Actually, it does not hurt to do it for any ETF you plan to buy.

    Unless you have access to oil futures, it also difficult to invest in crude oil for individual investors and you cannot easily store the thing like you do with Gold and Silver. You invest in Crude oil (WTI and Brent) via ETF such as ELEMENTS Rogers Intl Commodity ETN (RJI) or a fund like Barclays Capital Funds - Global Commodities Deltafor Singapore/ Hong Kong investors. Those follow Jim Rogers commodity index, so they are composed of a basket of commodities and only 40% is actually invested in crude oil. If you have better alternative that do not involve buying an oil tanker, I'd appreciate.

    An alternative way to invest in commodities is to buy stocks in the middle east, for example via Market Vectors Gulf States Index ETF (MES).

  3. Gold and Silver Bullion and/or Coins

    Gold and Silver have had a tremendous run for the last 10 years, but as long as we have negative real interest over the world they should perform relatively well. Having said that, an 11 year bull market, with no negative year (for Gold) is not very common, so I would not be surprised if we have 1, 2 or 3 years where Gold does nothing. I would also not be surprised, if Gold and Silver become bubbles as the central banks print money to try to save the system. You can invest in gold via GLD or PHYS ETF and silver via SLV or PSLV. PHYS and PSLV are managed by Eric Sprott, so I'd trust those more than GLD and SLV. If you are afraid of default risk by third party, then simply buy physical Gold and Silver and store them at home. If you are a US citizen and are not afraid of default by your bank, google "celente mf global".

    Finally, gold stocks are cheap relative to gold bullion on an historical basis. You can read The case for Gold Miners vs Gold and Eric Sprott: Time to Buy Gold Stocks for details. Hong Kong investors may have to make their own Gold stock portfolio, see Hong Kong Gold Mining Stocks and Gold ETFs for a list of Gold stocks in the Hang Seng.

  4. US Natural Gas

    Over the last 5 years, US natural gas is down 39% (Source: Indexmundi) at 128.30 USD per 1000 m3 and at the same time, Russian natural gas is up 20% at 435 USD per 1000 m3 and Indonesian natural gas is up a whopping 160% at 377.22 USD per 1000 m3.

    Usually, commodities trade similarly over the world, but natural gas is different since it is difficult to transport. The reason for the decrease in the US is fracking, a technology breakthrough, which dramatically increased recoverable natural gas reserve in North America.

    This may not be an investment that rewards investors by 2012, but with such a large price difference between the US and the rest of the world, there will certainly be people who will work on liquified natural gas (LNG) and terminals are planned in the US.

    Once again commodity investing is difficult, and products such as UNG should be avoided like the plague. Actually, I could not find a proper way to invest in natural gas, except by buying natural gas stocks, please read Investing in Natural Gas for details. If you have ideas, let me know.

  5. Short long dated US Treasury Bonds

    If has been tried unsuccessfully over the years, so the timing is uncertain, but the fact that long dated US treasuries bonds will be much higher at some point in the future is a certainty.

    The US is the worst offender in term of debt: high government debt, high private debt, low saving rate and massive trade deficits. It can't get worse than that.

    The federal reserve is also committed to print money to avoid deflation at all cost, this means the US dollar will lose value and investors will sell their low yielding treasury bonds (10-year to 30-year) and find assets with better value.

    If you can't short treasury bonds directly, you can invest in TBF ETF, although it decays a bit you may be able to keep it a few years, contrary to TBT or TMV. Read How to short US treasuries for more information.

  6. Alternative Energies

    With peak oil and pressure against coal use due to climate change, alternative energy will have to be developed if we may to keep living a good life. Investments in solar, wind, (alternative) nuclear, cold fusion and more will be made and there will be a lot of failures, but it's likely some companies will have an amazing success. Alternative energy stocks are very depressed at those levels after the 2008 bubble.

    This is a long term investment (5 to 10 years) and 2012 may not be the right time, but who knows. Avoid investing directly in alternative energy stocks, as you are more likely to lose a lot of money and invest with ETF or mutual funds instead. Since we don't know which technology will prevail, I'd also avoid investing in Solar fund or Wind ETF independently, but rather find a funds that covers a broad range of alternative source. If I had a gun on my head, I'd rather invest in wind energy rather than solar energy, as the former has a better EROEI.

    Based on the comments above, you could invest in ETFs such as Market Vectors Glb Alternatve Energy ETF (GEX) or First Trust NASDAQ Cln Edge Smrt Grd Inf (GRID) as well as mutual funds such as BGF NEW ENERGY.

  7. Water

    Companies related to water such as water treatment, pipes and valves manufacturers... will benefit of the water issues around the world. For example, I can feel some investments are needed in the water infrastructure in Thailand and with climate change and rising population, better water management is needed for agriculture.

    This is also a long term investment and unlikely to pay off immediatly in 2012 but you can invest with PowerShares Water Resources (PHO) and PowerShares Global Water (PIO) , read Invest in Water with ETF for details.

  8. Buy the Euro

    This may seem counter-intuitive with all the bad press and talks about the end of the Euro, but the truth is Europe is trying to take care of its debt problem now and the ECB is reluctant to print more money to further help the indebted countries thanks to pressure from Germany.

    The US and UK central banks seem to be happy to print as needed, and the Japanese Yen seems overvalued as investors take refuge in this currency.
    So if you are a holder of US dollar, British pound or Japanese Yen you may consider buying Euros, especially if it seems the debt crisis is resolved, European government keep implementing austerity measures, private investors take their losses on bad investments and the European central bank is not involved in printing currency.

    The best way to safely (without leverage) invest in the Euro would be to open a fixed deposit in Euro if your bank/country allows it. If it is not possible, you could also invest in a currency ETF/ETN such as CurrencyShares Euro Trust (FXE) or iPath EUR/USD Exchange Rate ETN (ERO).

That's it for 2012 investment ideas. Do you agree with my choices? Do you have a different opinion? Please let me know in the comment section.

Wednesday, November 16, 2011

Jim Rogers: The US is Becoming More and More Dictatorial

Very interesting 40 minute interview of Jim Rogers by Alex Jones (prisonplanet.com).

They talk of the current economic situation in Europe and US, why Jim Rogers has move to Singapore (for is daughters), the loss of freedom in the US, Jim Rogers current investment themes (commodities), his views on Silver and Gold and more.