Marc Faber Says Gold Is Most Precious Asset
Legendary investor Marc Faber appeared on Bloomberg yesterday, where the Swiss money manager who became famous for calling the 1987 U.S. stock market crash shared his latest U.S. economic outlook and investment strategies. Notable excerpts from the discussion included:
The dollar will go down. So the investor has to be very careful to be in assets that will actually appreciate in both foreign currency terms and in dollar terms. And if I look around the world, in my opinion, the most precious asset going forward will still be gold…
I only buy physical gold, because I don’t trust derivative products, I don’t trust ETFs, and I advise every American to hold this gold outside of the United States.
The editor of the monthly investment newsletter The Gloom Boom & Doom Report also talked about other investment opportunities. Dr. Faber said:
Well, I think that the gold mining shares, especially the exploration companies, have been hammered, and so a rebound, a very strong rebound, could occur there as well. I also think that corporate bonds market, especially lower-quality bonds around the world, have built up huge spreads vis-à-vis Treasuries, and so the corporate bonds market, actually, for my taste, would seem to be more attractive than equities.
When asked by Bloomberg whether or not the stock market rally could continue, the investment adviser and fund manager offered this advice:
Well, I think we can rally further because world-wide governments are really injecting liquidity through fiscal measures and monetary measures into the system. And then everything goes up, but some things go up more than others. And as I said, I think that precious metals are attractive because every responsible individual in this world must know— central banks have become asylums for economists that have turned insane. And in their insanity, they became money printers. And so you have to be your own central bank. You cannot trust the central banks of our governments anymore…
I think you can trade this rally here in index futures, ETFs, in physical commodities, precious metals, and so forth. But at some point, in January to March of next year, you have to get out because the global economy is imploding. I’m repeating— imploding. And there’s not going to be a recovery despite all the government interventions.
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Source:
Marc Faber Interview
Bloomberg, November 25, 2008
