Jim Rogers Backs the Buck

And, while he acknowledged it is not easy for the average American to just go and buy assets in China's currency, the renminbi, the more accessible Hong Kong stock market lists many of China's same companies but at lower multiples than they trade in Shanghai -- a virtual bargain.

He suggests investors look into exchange-traded funds as well. These include iShares FTSE/Xinhua China 25 Index FXI, the PowerShares Golden Dragon Halter USX ChinaPGJ, or the China FundCHN. The iShares FTSE/Xinhua exchange-traded fund is up 266% from inception in 2004.

Rogers hopes he'll be able to pass down his Chinese stocks to his 4-year-old daughter, but adds he may be forced to sell.

"If a bubble develops in China in the next year or two, I'll have to sell because bubbles end badly," says Rogers, pointing to Japan, where stocks remain well below their levels of over a decade ago. But he believes Chinese stocks would have to double before he'd feel forced to sell.

The self-proclaimed "inactive investor" is not buying much these days. He's bullish on commodities, though he agreed he'd be hard pressed to find anything to buy at these levels. If he'd buy any commodity it would be in the agricultural space rather than the metals, though he declined to specify one. He's short the U.S. investment banks along with the dollar.

Next to China, Rogers says he's long gold.

"I'll undoubtedly buy more gold," he says, predicting it will double from here in the next few years.