Jim Rogers: Oil, Coffee, Gold to Soar Higher

Commodities such as oil, coffee and gold may be going through some ups and downs these days but overall, they remain on track in a longer-term bull market, says famed investor Jim Rogers.

Downturns are normal, Rogers tells IndexUniverse.com.

Take oil.

"If you look at oil, for instance, it has gone down over 50 percent three or four different times since 1998," says Rogers, famous for his bullish stance on commodities.

"That's what markets do, and they will continue to do that."

Jim Rogers (Getty Images photo)

Agricultural commodities will do particularly well based on supply and demand factors: growing populations mean growing demand.

"We know that there are huge shortages of agriculture developing," Rogers says.

"I don’t know if you knew this, but the average age of farmers in America is 58 years old. In 10 years, they’re going to be 68, if they’re still alive. Throughout the world, we have serious, maybe even catastrophic developments in agriculture, which is going to hurt us all over the next couple of decades."

Oil supplies will remain tight as well.

Many commodities have rallied over the past few years, and although some have cooled a bit, expect the buying to continue, experts say.

"The long-term perspective is that many commodities have supply constraints," says Walter "Bucky" Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management in Birmingham, Alabama, according to Bloomberg.

Look for gains in gold, which tends to do well amid times of rising inflation rates.

"That’s an environment where you want commodities in your portfolio."