NEW YORK (TheStreet) --
, legendary contrarian investor, author and chairman of Rogers Holdings, is still betting on $2,000 gold in 10 years and in the meantime is looking to profit from China, the euro and other commodities.
Rogers' $2,000 gold target is nothing new but as
have popped 11.8% year to date and the euro has fallen almost 14% against the U.S. dollar, a contrarian investor might sell gold and buy the euro. I spoke with Jim Rogers to see how he was positioning his portfolio.
What is your gold outlook?
: As far as I'm concerned, gold will go certainly much higher over the next decade or so. Governments all over the world are debasing money at a rapid rate and that has always led to higher prices for real assets throughout history and it will this time too.
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Do you have a price target?
: I mean, I know the old high, adjusted for inflation, is over couple thousand dollars an ounce. I know it'll get there over the next decade. It depends on how much they debase the currencies.
Rates are going to go much, much, much higher. I'm judging the world as it goes. I see that actions by governments all over the world are making it worse. So I presume that will continue and gold will go that much higher over the decade.
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Did you revise your price target or outlook for gold after the European debt crisis?
: It's all part of the same picture ... most governments everywhere only know one thing and that's to print and spend money that they don't have ... Whenever you do that, it debases currency, always has, and until I see some governments realize that they
have to do something else, then I plan to own gold and other precious metals and other real assets.
What other precious metals do you also like?
: Silver is 70% below its all-time high, 60% or 70% below its all-time high. Gold is making all-time highs. I think people should perhaps look at silver, platinum, palladium. Palladium is also 50%-60% below its all-time high. Platinum is maybe 30% below its all-time high. Frequently, you're supposed to buy the things that haven't moved as much. And so I would be looking at the others if I were thinking about precious metals. But I own all four, don't get me wrong.
Now at these levels, are you buying them all right now? Or are you just buying silver, platinum and palladium?
: I bought some silver recently
but I have not bought the others recently.
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But you're not selling them either?
: No, it's
going to be a huge bubble in precious metals by the end. I don't know when that will be; ask me in 2018, 2020 ... Most long-term bull markets wind up in a huge mania, a huge bubble before it's over and this one will too. Someday, everybody will own gold. Someday, people will be walking down the streets checking gold prices in front-shop windows. No, in the end, it's going to be a huge bubble.
If an investor didn't own gold right now, would you tell them it's safe to buy right here at the top?
: I've said before, if I were looking at precious metals I would be looking at the ones that haven't moved as much. If one doesn't own gold, and one doesn't want to buy the others for whatever reason, one should start waiting for some sort of correction and then buy some gold. But as I said, the others are much more depressed historically than is gold.
Do you like gold coins, silver coins, or are you looking at a different way of investing?
: I own coins and futures for all of them.
Moving out of gold, what else do you like right now? You bought the euro two weeks ago? How come?
: Well, the euro was so beaten down. Everybody in the world was pessimistic about the euro, including me. So I realized normally when there's that kind of emotion in the market, it's time to step in and take the other side. So I bought euro. I own the euro. I don't know what I'm
going to do with it. But I do own it at the moment.
Do you think that the EU's going to survive?
: Well, I don't think that the euro's going to survive. Not at the rate they're going now. I don't think they'll be around in 10 years. If the euro breaks up, it will probably put huge pressures on the EU, and it will probably fall apart too. It's conceivable, you can get rid of the euro and still have the EU. But if the euro starts breaking up, it'll be a lot of emotions and in that kind of a situation, the EU will probably break up too, which will not be good for the world.
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Have you sold your U.S. dollar positions?
: No, I own more dollars than I've owned in a long time.
I've been pessimistic on the dollar for a few years. But I did step in last fall and started buying dollars again.
I remember when I spoke to you at the end of last year, you said if you do see a dollar rally, you'll sell
: Well, there has been a dollar rally. But I am not selling. Not yet.
What other contrarian investments do you like right now like the euro?
: I 'm short a large western financial institution that everybody thinks is terrific. I shorted some emerging markets because they went up so much. They were the strongest. Shorted some tech ETFs because they were so strong.
So which country are you still most invested in? China
: I own Chinese shares. But I own a lot of commodities. I don't know how you define commodities. They're not any country. They're the whole world. So I own currencies, I own the Chinese currency,
and I own the yen.
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I own the renminbi and I expect it to go higher over the years. I don't have any plans or intentions to sell my renminbi. I mean, it's not even convertible yet. That's got a long way to go. That's something I don't see any reason to see for years to come.
So does that mean you're more bullish on China than you are on say, Western countries then?
: Well it depends on when you say more bullish, you mean stocks, currencies, economy?
Economy, government, health of the nation
: Well, the U.S. is the largest debtor nation, not just in the world, but in the history of the world. China's the largest creditor nation in the world. Normally one prefers to be with the large creditors than with the large debtors. So of course, I see a better future, economic future for China than for the U.S. the way things are right now.
Aside from the precious metals that we talked about, what other commodities do you like?
: Agriculture still. Agriculture's still very depressed. Frequently, one will make a lot of money if you buy the things that are depressed
and where things might be getting better.
What about oil and natural gas?
: Well, of the two, I'd rather buy natural gas
with the same theory. It's depressed. Oil's down. It's not nearly as depressed as natural gas. But I'd rather buy natural gas than oil. But again, I hasten to tell you, I own them both. And I'm not selling either.
: I'm a horrible, horrible, horrible short-term trader. I'm the world's worst. So I'm watching BP with great interest because somewhere along the line, there's
going to be some kind of investment in BP. Whether it's the bonds or stocks or who knows what. But at the moment I'm doing nothing except watching.
So what happens to the world economy as you see it
: We're certainly going to have another recession in the next two or three years. We've had recessions every four to six years since the beginning of time. So by 2012, we're getting ready to have another one, if history's any guide. I suspect it will happen before then, because there are still so many imbalances in the world which have to be sorted out.
What's the biggest positive and the biggest negative that you see in the big macro picture right now for the world economy?
: The gigantic debt imbalances. Throughout history, when you've had these kind of imbalances, they usually worked their way out in the currency market. It used to be the gold market when we had the gold standard. We've been seeing currency dislocations for two or three years. We're
going to see a lot more. Everybody who gets involved with you should learn about currency because we're
going to see many, many, many, more currency problems in the next two or three years. And that's
going to affect us all, including stock markets and including economies.
Written by Alix Steel in New York
Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.