Investors should sell bonds and buy commodities like silver and rice as a “refuge” as the world economy may continue having problems, Jim Rogers, chairman of Rogers Holdings said.

“Bonds are not a good place to invest in,” Rogers said at a conference in Kuala Lumpur today. “You should own commodities because that’s your only refuge” whether it’s silver or rice, said Rogers, who predicted the start of the global commodities rally in 1999.

‘Straight Up’

“I do own gold,” he said. “Gold has been extremely strong of late, but I’m not rushing out to buy gold. I don’t like to buy things that have been going straight up.” While gold has been trading at all-time highs, silver remains 60 to 70 percent below its peak and is a better investment, he said. Silver reached an all-time high of $50.35 in New York in 1980.

“Not many things are 75 percent cheaper that 36 years ago, but that’s true of sugar,” Rogers said. “Agriculture commodities are desperately cheap compared to 20, 30, 40 years ago.”

Gold: A More Meaningful Correction Is A Distinct Possibility – July 8th

Whereas a gold price break is not necessarily my forecast I am warning investors that a more meaningful correction is a distinct possibility.

And why could gold correct? As just mentioned, the bullish consensus among investors is for my taste too high and the deflationists seem to have currently the upper hand.

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. You can find his Blog HERE