They are playing futures and if your pockets are deep enough you CAN average down and come out on top. Remember a farmer is NEVER going to sell you Wheat for zero, so if you know that commodities will never got to zero and you got enough money you keep adding to your losing position until a bounce makes you whole again. Rodgers clains he shorted gold at 400 a while back (I think in the 80's) - Gold went to 850 before dropping back down to 250. Now if he shorted at 400, shorted more at 500, shorted more at 600 shorted more at 700 and really went short at 800, by the time the price came back down to 400 he would have made enough to open an offshore bank! But only the uber rich can play this way!
Not that I care that much but I respectfully disagree. I think Jim Rogers is the real deal and what he has to say and what I have read rings a very true note for me. Hes been saying to get out of the dollar for a while and as I write this the dollar is hitting lows. He has said to be in AG and wheat and corn have gone up. Gold is hitting new highs as well. I have personally bought thousands of dollars worth of the Chinese Yuan starting in 03 and as Rogers said as well its up well over 20% He moved to Singapore. A place with no unemployment insurance, no capital gains taxes, near China, with a high standard of living, and no debt. I think in the big macro picture he has it on the money and has the guts to back up what he says. The United States empire appears to be circling the drain and about to become what the English empire was in 1908. Welcome to the world of India, China and other parts of Asia setting standards and the agenda. While they are going to be busy building wealth power and influence we will be trying to figure out what to do with Medicare obligations, "Free" Health care, debt/spending out of control (at the personal, state, and federal level). Ignore Rogers at your own risk.
More bum information. According to Rogers he shorted gold at $675. (Market Wizards interview). This was about 4-5 days prior to the peak in the parabolic move to $850. He says absolutely nothing about averaging in. I was around for that move. If you didn't get short before the peak, you couldn't short after the peak for quite a while. It was down the limit every day. You need to pay some attention to the accuracy of your information. OldTrader
You are absolutely correct - pg 287 he clearly states he shorted gold at $675. However, the point I was making is still valid.
I don't know if your point is valid or not. It kinda got lost in your misinformation about Rogers. What was your point? And this time don't use Rogers to make it. OldTrader
You are right wheat is not going to zero, but the contract rolls in wheat can kill you. Futures are not like stocks.....
scottrade broker to a panicky Joe L. "BSC.PK is a nickel on the bid side but we think it will come back"