Commodities on FIRE: Guru Makes Stunning Prediction

By Lee Bellinger / November 12, 2013

The dollar is falling rapidly, and gold and silver are on the march (along with other hard assets). But these rising prices are not just about inflation. There’s also the problem of scarcity.
Here are two smart mega-investors who saw these events coming…
Commodity King Jim Rogers Recommends Buying “Stuff”
In between motorcycle journeys around the world, global investor Jim Rogers has made a fortune several times over investing in commodities.
Commodities
How does a layperson invest in commodities? It’s as easy as investing in any stock or mutual fund.
The best, most fully diversified commodities fund is the ELEMENTS Rogers International Commodity (RJI) exchange-traded note, which tracks the index developed by commodities king Jim Rogers himself. The wild market volatility of 2008 produced the most severe sell-off in commodities seen in decades. So there is still an opportunity to buy RJI off of oversold levels.
Rogers has also developed an index for commodity-producing stocks: the Rogers Van Eck Hard Assets Producers Index. In September 2008, an ETF for retail investors was launched that tracks the index: Market Vectors RVE Hard Assets Producers (HAP).
HAP gives investors the opportunity to partake in profits from the global commodities bull market. Unlike other commodity-stock ETFs which tend to be heavily weighted toward North American companies, Rogers’ index is truly global. United States companies are just 35.8% of the fund. Canada is 12%; Britain 5.9%; Russia 5.1%; China 4.8%; Brazil 4.1%; and 33 other countries make up the remaining 32%.
Here are a few of the fund’s top holdings:
  • Monsanto Company
  • Potash Corporation of Saskatchewan, Inc.
  • ExxonMobil Corporation
  • Deere & Company
  • Brazilian Petroleum Corporation ADR
  • Gazprom OAO
Robert “Rich Dad” Kiyosaki LOVES Silver
Robert Kiyosaki is a successful real estate investor who gained fame by penning the “Rich Dad” series of books in which he explains how rich people think and behave differently than the poor and middle class.
Due to the government’s disastrous fiscal and monetary policies, and the inability/unwillingness of most people to adapt to the coming hard times, Kiyosaki says, “The middle class will probably be wiped out in America.”
Silver and Gold
But these days Kiyosaki is more interested in precious metals than in real estate. Gold and silver function as alternative currencies, gaining when confidence in the fiat U.S. dollar drops.
Kiyosaki has turned super-bullish on precious metals, remarking in a recent column, “As much as I love real estate, I believe the biggest opportunity today is in silver. I think this precious metal is about to become the most spectacular investment in recent history.”
If Kiyosaki is right, silver won’t be this cheap for very long. As we’ve been urging readers to do for several years, exchanging some of your depreciating dollars for silver makes good sense. Silver priced in the $100s in the next decade is a very real possibility. The supply-demand fundamentals for this particular metal are that compelling. The government’s inflationary policies will only amplify silver’s rate of appreciation.
Silver is the biggest opportunity I have ever seen. Bigger than real estate, bigger than anything else,” Kiyosaki declared. Now that is a remarkable statement coming from someone who got rich in business and in real estate.
Yes, silver has been on a tear lately, rising to nearly $25 per ounce. But the “smart money” says it’s still time to buy silver. Super-successful investors – from Robert Kiyosaki, to Jim Rogers, to John Paulson, to even Warren Buffett – are bullish on the metal.
So whether it’s in the form of old 90% silver dimes, quarters, and half dollars (a good place to start), .999 silver bullion coins, rounds, or bars, or through a bullion storage program… BUY SILVER!