Jim Rogers Foresees Food Shortages (SLV, USO)

Jim Rogers told CNBC Friday that the financial crisis is likely to lead to food shortages in a few years because the agricultural sector is in dire need of funds.

According to Rogers, very serious food shortages everywhere in the world will lead to prices spiking. He recommends buying cotton and coffee because they are very distressed. He also points out that while sugar has gone up a lot, it's still down 70 percent from its all-time high.

Rogers believes investors shouldn't bother with stocks because commodities are likely to win in both the optimistic and the pessimistic scenario. If the economy rebounds, commodity prices will rise because of increased demand; if the economy continues to be weak, central banks will keep the printing presses running and commodities will be used as a hedge against inflaton.

Rogers said he is holding oil and gold. He also recommends buying silver.