Commodity prices to shoot up: Jim Rogers

According to him, the prices of agricultural commodities and food are going to continuously rise in the coming years. Commodity prices are going to shoot up. The challenge is that people are eating more foods these days. But the supply of food products is coming down, he said.

Rogers, who is now settled in Singapore and who has been investing heavily into agricultural commodities in China, says the biggest problem that the food sector faces is that the inventories of food are the lowest not in years but in decades.

Food supply is going to remain down since we have serious production problems. At the same time people are eating more and we are burning some of our foods as fuels, said Jim Rogers.

Jim Rogers, author of the well-known book called Hot Commodities, said that the combination of burning foods into fuels won't change unless governments quit the debacle of using corn to turn into ethanol.

That at least would keep the prices of corn relatively in check and available to livestock and human beings at a decent price. If not, corn itself and anything it feeds will increase in price as a result, he said.

Rogers has said numerous times in the recent past that those that own the fancy cars in the next 10 to 20 years will be those who turn in their briefcases for farming. I think he's right!

Still, there are numerous ways you can play agriculture, from those providing equipment and seeds to to those providing the fertilizers and other essentials to operate the business.

Water is another key thing to look at over the next years as populations in many areas of the world continue to grow exponentially, with world population growth estimated to be at over 9 billion by 2050.

Jim Rogers had recently blasted several analysts for suggesting that China's growth is not sustainable and the Chinese economy is caught in a bubble.

Rogers recently predicted that gold prices would surge to touch $2,000 per ounce in the next one decade. He also said that silver and platinum are better precious metals to invest in rather than gold these days.