Jim Rogers: Inflation Going Higher

U.S. Dollar Inflation

In a recent interview, Jim Rogers said that the U.S. government is lying about inflation, and that the current rate is probably more around six to seven percent, in contrast to what is being asserted.

Rogers simply points to the obvious, that when you go out shopping, the prices are definitely higher, and obviously that can't be spun by the government.

The best play going forward, according to Jim Rogers is to invest in gold and commodities, as raw materials will outperform other assets in the future.

U.S. Dollar Inflation

US Dollar Play | Invest in Commodities

One of the more obvious play with the U.S. dollar is to invest in commodities. That can be done through futures, funds and stocks linked to raw materials.

A commodity index fund is another great way to invest in commodities over the long haul, which will continue their bull run overall once the demand for infrastructure materials resume from countries and companies spending more money.

No matter what happens to the U.S. dollar though, which will obviously continue to lose its value, commodities will continue to rise based on the demand from growing middle classes in emerging markets.

So while commodities are a great play against the weakening U.S. dollar, they are also a terrific plays in and of themselves based on demand and supply; along with tight credit markets.