Tags: marc | faber | gold

Faber: Gold Is My Asset Pick for the Next 10 Years

Thursday, 12 Aug 2010 09:00 AM

"Gloom, Boom & Doom Report" editor Marc Faber told a CPA Association meeting in Abu Dhabi that gold is his asset class of choice for the next 10 years.

Faber said earlier in the year that investors should by some gold, every month, forever.

Faber began his talk by saying that extreme deflation scenarios are extremely unlikely under the Bernanke Fed, Goldseek.com reports. He also compared the Fed chairman’s commitment to an antideflation strategy to Adolf Hitler’s "Mein Kampf," which was also not widely believed until it was too late.

Faber said that holding cash and bonds exposes investors to more dangers than holding equities, though he believes that equities are unlikely to make money given coming inflation.

He advises long-term term investors to buy gold and equities, especially globally diversified gold and resource stocks, and to invest in emerging and frontier markets, which he believes have much better growth prospects over the next 20 years than the developed markets.

However, Faber also warned of a coming crisis in China.

Faber described himself as the "most pessimistic of forecasters, nobody is more pessimistic than me," then outlined a scenario in which the dollar has to be replaced by another unit after a future inflation, and holders of cash and bonds lose virtually everything in the process.

China is encouraging its banks to finance bullion acquisitions and Chinese citizens to own gold and silver, Goldseek also reports.

Bullion is available at government-run banks, and China is paying premiums for raw ore to be shipped there for contract milling or milling at discounted prices.

Meanwhile, law enforcement and local governments are scrambling to shut down a shadow industry that has grown up around the booming cash-for-gold business nationwide: thieves are snatching jewelry, then converting it into a quick payday at the shops.

Thousands of shops have opened to take advantage of high gold prices and hard economic times, and police in some cities have noticed an uptick in burglaries and thefts, the Associated Press reports.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Gloom, Boom Doom Report editor Marc Faber told a CPA Association meeting in Abu Dhabi that gold is his asset class of choice for the next 10 years. Faber said earlier in the year that investors should by some gold, every month, forever. Faber began his talk by saying...
marc,faber,gold,
333
2010-00-12
Thursday, 12 Aug 2010 09:00 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved