Commodity prices raised by low stockpiles, says Jim Rogers

From the Singapore Straitstimes -

HEDGE funds have been blamed for sending commodity prices skywards but international investor Jim Rogers believes the cause is far simpler - record-low inventories.

Singapore-based Mr Rogers dismissed the argument that prices have been at the mercy of hedge funds making bets on futures markets.

'Prices are going up because inventories are at the lowest they've been in decades. People invest in things that are successful and where fundamental supply and demand is positive,' he said.

'Rice is going up not because hedge funds are pumping money into them; rice is going up because there is no rice.

'Whenever you have a bull market, people will put their money there. That's where the attractive investments are.'

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