The headline itself sounds very strange, but indeed the famous commodity investor Jim Rogers said today that believes it will happen in the next ten years. Gold is currently trading at historical highs, above the $1,060 mark. Rogers believes that gold, as well as other commodities are the single best way to diversify your portfolio in this market era. He also calls the dollar a “terribly flawed currency.”

Rogers actually believes that while gold will get the most attention, silver and palladium will perform even better since they are even more undervalued than gold at this time. Rogers stated that he currently owns gold, silver, platinum, palladium, and agricultural commodities such as sugar.

The words from the famous commodity investors struck many as overly bullish, though many on Wall Street agree that commodities are set to continue their strong run in the coming years. What are the main reasons that commodities are seen as having such a strong outlook? The rising amount of debt across the world and the need for the most trusted asset types. Also, the demand coming from Asia has really put a dent in the ability for producers to supply enough of these hot commodities.

What should you do with your portfolio regarding commodities? As an individual investor it is wise to diversify in every way possible, which would mean having some exposure to commodities such as gold or silver. The easiest way to invest in something like gold is to buy a ETF that is a basket of gold stocks in one.

If you have little or no exposure to commodities you should probably start trying to get into that space, but don’t go wild simply getting out of other assets to jump into commodities. Jim Rogers could be right, but he has always been extremely bullish on commodities and there are ebbs and flows to their demand, so don’t jump in blindly.