Jim Rogers: Food shortages coming, commodities to go through roof

Co-founder of the Quantum Fund and Chairman of Rogers Holdings, Jim Rogers, spoke with CNBC to discuss the financial state of commodities. What's his view? Well, agricultural commodities will go through the roof and food shortages are coming.

On Friday, Jim Rogers, author of “Hot Commodities” and founder of Rogers International Commodities Index, was interviewed by CNBC to talk about the agriculture sector and Rogers said that he foresees the financial crisis leading to food shortages in the next few years and that the agriculture sector is in need of large measures of investing, which will make commodities prices “go through the roof.” Rogers added, reports Daily Finance, that farmers cannot get loans to buy fertilizers, even though there are large shortages in several areas, which he feels is a significant buying opportunity for investors. For many years, the famed investor has appeared on several CNN, CNBC and Bloomberg financial television shows and his consistent investment advice is to put your money into the agriculture market and commodities around the world. Rogers generally believes that buying commodities is a much better alternative than investing in stocks. He also holds oil and gold bullion and recommends purchasing silver bullion. “The fundamentals (for agriculture) have gotten better. The inventories are now at the lowest they've been in decades, not in years. Sometimes in the next few years we're going to have very serious shortages of food everywhere in the world and prices are going to go through the roof. I don't think that the problems of the world are behind us yet.” The author of “A Bull in China: Investing Profitably in the World's Greatest Market" advises to buy cotton and coffee because they are currently very distressed. He added that sugar is increasing again and that it`s 70 per cent below its all-time high. In a nutshell, Rogers believes, notes Benzinga, either way commodities will lead the way. If the economy ever rebounds then commodity prices will go up because of increased demand. If the economy continues to slump then central banks around the world will continue to print money at vast levels, while commodities will be used as a hedge against inflation.