JIM Rogers, once George Soros’s partner and now probably a frequently quoted commentator on resources — one news report referred to him as a “commodities guru” — is very bullish about the outlook for almost all of the sector.

But there was a television interview he did a few weeks ago which has stuck in our mind, and two points from that are worth thinking about as we contemplate the coming year, significant because 2010 will round off the first decade of the new millennium come next December 31 (please note all those who can’t count and have already summed up the decade).

The first point Rogers made was to continue to be bullish about gold. He cited a recent commodities conference in Prague which he addressed, and during which he asked the 300 “heavy hitters” (as he described them) to put their hands up if they had ever owned gold. Only about a quarter had, a response that obviously astounded Rogers. The point: it shows just how big an untapped market remains among the high net worth types for gold.

The other point was his belief that the best investment lies in agricultural commodities. Rogers believes there will be a global food crisis within five years. Food prices have to go up because, without higher farm incomes, it will be hard finding enough people to work the land. He was astonished that even last year, when there were rice shortages, agricultural commodity prices remained depressed.

…..read more HERE.