Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
JOHNSON & JOHNSON (JNJ) Big Pharama AI Mega-trend Investing 2020 - 25th Jan 20
Experts See Opportunity in Ratios of Gold to Silver and Platinum - 25th Jan 20
Gold/Silver Ratio, SPX, Yield Curve and a Story to Tell - 25th Jan 20
Germany Starts War on Gold  - 25th Jan 20
Gold Mining Stocks Valuations - 25th Jan 20
Three Upside and One Downside Risk for Gold - 25th Jan 20
A Lesson About Gold – How Bullish Can It Be? - 24th Jan 20
Stock Market January 2018 Repeats in 2020 – Yikes! - 24th Jan 20
Gold Report from the Two Besieged Cities - 24th Jan 20
Stock Market Elliott Waves Trend Forecast 2020 - Video - 24th Jan 20
AMD Multi-cores vs INTEL Turbo Cores - Best Gaming CPUs 2020 - 3900x, 3950x, 9900K, or 9900KS - 24th Jan 20
Choosing the Best Garage Floor Containment Mats - 23rd Jan 20
Understanding the Benefits of Cannabis Tea - 23rd Jan 20
The Next Catalyst for Gold - 23rd Jan 20
5 Cyber-security considerations for 2020 - 23rd Jan 20
Car insurance: what the latest modifications could mean for your premiums - 23rd Jan 20
Junior Gold Mining Stocks Setting Up For Another Rally - 22nd Jan 20
Debt the Only 'Bubble' That Counts, Buy Gold and Silver! - 22nd Jan 20
AMAZON (AMZN) - Primary AI Tech Stock Investing 2020 and Beyond - Video - 21st Jan 20
What Do Fresh U.S. Economic Reports Imply for Gold? - 21st Jan 20
Corporate Earnings Setup Rally To Stock Market Peak - 21st Jan 20
Gold Price Trend Forecast 2020 - Part1 - 21st Jan 20
How to Write a Good Finance College Essay  - 21st Jan 20
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Jim Rogers Favourite Commodities Investments

Commodities / Agricultural Commodities Apr 15, 2009 - 05:38 PM GMT

By: DailyWealth

Commodities Best Financial Markets Analysis ArticleWith Matt Badiali

Q: Do you think Jim Rogers is right to be buying agricultural commodities now? – A.M.


A: Legendary commodity trader Jim Rogers recently told Bloomberg viewers that farmers, not brokers, would drive Lamborghinis. He also told the host to start up a Bloomberg farm show...

His argument is simple: Farmers can no longer get loans for fertilizer, so supplies of most crops are down. However, demand for those crops, like cotton and soybeans, is actually rising. That means prices must rise.

Rogers' record on "soft" commodity investing is pretty impressive. In 2004, he published Hot Commodities, focusing specifically on sugar and coffee. Both were ideal commodity trades: There wasn't enough supply to meet demand.

In January 2004, coffee sold for 70¢ per pound and sugar just 6¢ per pound. As you can see from the chart below, prices rose steadily over the next few years. Coffee peaked at $1.78 per pound and sugar peaked at 20¢ per pound. That represents gains of 155% and 232%, respectively.
Rogers' Big Calls on Sugar and Coffee


I agree with Rogers that we'll see shrinking supplies of farmed commodities like wheat, cotton, and soybeans. We could see their prices repeat coffee and sugar's performance.

You can invest in Rogers' farm trade through the ELEMENTS Rogers International Commodity Agriculture ETN (RJA). This fund holds about 20 different agricultural commodity futures. The top holdings are wheat (20%), corn (13.6%), cotton (11.6%), and soybeans (8.6%).

Q: You talk about geothermal, solar and wind, but you never mention wave power. Got an opinion? – G.T.

A: I think wave power is cute – it looks like a power source, only smaller... No really, these buoys do generate power. But like solar and wind, they need a whole lot of space and a whole lot of expensive investment to approach anything like a real power plant.

Wave power extracts energy from the ocean using buoys. The rise and fall of the buoys on the ocean's surface generates a current, which runs by a cable to a power station on land.

It takes 30 acres of buoys to generate 1 megawatt. The U.S. has peak production capacity of about 1,000 gigawatts of electricity. A gigawatt is 1,000 megawatts. Therefore, to generate one one-thousandth (0.001) of the energy we need, you'd have to cover almost 50 square miles of ocean.

According to Unenergy, a blog that promotes alternative energy, geothermal is the cheapest alternative energy. A new geothermal plant will cost about $6.2 million per megawatt to build. A wind farm comes in around $6.75 million per megawatt. And a new solar plant runs about $7.9 million per megawatt.

Wave systems cost around $8.2 million per megawatt.

Compare that to a coal-fired power plant that can pull carbon dioxide out of its exhaust. It would cost about $2.9 million per megawatt to build. A new nuclear power plants costs about $3.75 million per megawatt.

So for coastal towns that want to supplement their existing power grids, wave power could be an expensive but "green" option. But it won't ever be a meaningful addition to the national power supply.

Good investing,

Matt

P.S. To submit questions for the Commodity Q&A, send me an e-mail and look for answers every Wednesday. (Remember, I can't give personalized investment advice.)

http://www.growthstockwire.com

The Growth Stock Wire is a free daily e-letter that provides readers with a pre-market briefing on the most profitable opportunities in the global stock, currency, and commodity markets. Written by veteran trader Jeff Clark, and featuring expert guest commentaries, Growth Stock Wire is delivered to your inbox each weekday morning before the markets open.

Customer Service: 1-888-261-2693 – Copyright 2009 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth / Growth Stock Wire Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules