Worried about increasing prices, short supplies, and political unrest, developing countries are stockpiling staples. Wheat touches a new 29 month high after Algeria and Saudi Arabia announce extraordinary purchases. Indonesia, which usually buys rice 200K tons at a time, tenders for 800K. JJA +0.4%.
Unconcerned that China and India are tightening monetary policy, Jim Rogers sees commodities as a win/win investment. “If the world economy gets better, commodities are going to make a fortune. If the world economy does not get better, commodities are the place to be because they are going to print more money."
A new ETF based on the half-century-old Thomson Reuters/Jefferies CRB commodity futures index has begun trading under the symbol (CRB). The fund consists of 50 energy stocks, 35 agricultural stocks, 35 base metal stocks and 30 precious metal stocks.