Tags: Marc | Faber | Gold | Standard

Faber: Dismal Stocks, Bonds Create New Gold Standard

Wednesday, 24 Mar 2010 09:42 AM

Uncertainties surrounding asset classes such as stocks and bonds have created a new gold standard, says Marc Faber, editor of “The Gloom, Boom and Doom Report.”

Between 2001 and 2008, gold outperformed stocks and bonds, but beginning in 2009, stocks soared.

That, Faber says, sent some investors to gold for safety because normally, retail investors cannot move in and out of different assets like institutional investors.

“I think we already have now a gold standard … created by the market place,” Faber tells CNBC.

“We have the [exchange traded funds] that have proliferated and we have more and more physical buying of gold.”

Going forward, Faber says he likes oil and mining companies and adds that investors should have at least half of their investments in emerging markets.

A weak dollar and growing demand for commodities such as base and precious metals and other raw materials make commodities attractive investments.

China's demand for iron ore, copper, coal and aluminum will increase during the next 15 years, yet India will take the lead when it comes to commodities demand, says global mining giant Rio Tinto CEO Tom Albanese, according to the Associated Press.

“India is expected to follow, supporting a further potential wave of strong commodity demand,” says Albanese.

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Uncertainties surrounding asset classes such as stocks and bonds have created a new gold standard, says Marc Faber, editor of The Gloom, Boom and Doom Report. Between 2001 and 2008, gold outperformed stocks and bonds, but beginning in 2009, stocks soared. That, Faber...
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2010-42-24
Wednesday, 24 Mar 2010 09:42 AM
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