Invest in commodities now: Jim Rogers

Excerpts from CNBC-TV18’s exclusive interview with Jim Rogers:

Q: We have seen commodities decline in the last couple of months, do you think it’s a moment to buy or there is more decline left in the market?

A: It is better to buy when things are going down rather than when they are going up but I have no idea whether this is the best time. Normally September and October in investment markets are weak months so you are at the right time to start investing in commodities if you have it.

Q: You have come here for a launch of a commodity fund, do you think it’s the right time to launch a commodity fund when prices are down?

A: You got to buy when things are going down, you don’t want to buy when things are going up. If they had launched this fund in July it would have been a disaster. They may get money in October but it certainly looks to me that they are very lucky.

Q: What would you buy? Would you buy commodities or funds or into mining companies, what seems best to you?

A: It depends on your ability. If you know a lot about commodities, you can invest in commodities and that’s difficult in India. If you are a good stock picker then you are much better investing in commodity companies or commodity funds. If you know a good stock picker who runs a fund buy that fund, you will make more money.

Q: What are you betting on the non-agro or the agricultural commodities?

A: I bought agricultural commodities recently. They have gone down and everything has been going down for the last couple of months. I would rather buy agriculture than most things these days.

Q: You have never liked US dollar but we have seen a resurge come in to that? How long do you think this would stay?

A: We are having a rally in the dollar because everybody is bearish on it including me and that always leads to a rally. I don’t know how long it’s going to last but I plan to sell this rally sometime in the next month or a year. I don’t know how long this is going to go but I know that US dollar is a terribly flawed currency and it has got terrible problems down the road.

Q: Gold prices have come down from USD 1,034/oz to USD 730/oz, do you think there is more downside left here or would you buy at these levels?

A: I am going to try to buy little bit of gold today here in India, not a major position. If it continues to go down, I hope I am smart enough to buy more. Gold could go to USD 500/oz and could have a big correction. All markets do that, they have big corrections and they scare everybody but a 50% correction is normal. If it goes down 50%, I hope I am smart enough to buy a lot more.

Q: What would you buy as of now?

A: I recently bought airline stocks, agriculture, Renminbi, Swiss Francs, and Japanese Yen.

Q; Do you still believe we are into a bull commodity market and we might see more highs going on from here?

A: Over the next decade, we are going to see more highs. The world is in a recession now; you may see lower prices for some commodities for a while just as you may see a lot lower prices for a lot of stocks. Of the two classes, I would rather own commodities than stocks because when the economies revive, commodities are going to revive first and go up the most.

Q: What are you picking up in the Q1 of 2008, what do you think would rebound faster?

A: I am the world’s worst market timer; I am a horrible short-term trader. I have no idea. A lot of people on CNBC can tell you everyday what exactly you are supposed to be buying and when it’s going to go up and how much but I am not one of those people.