Thursday, March 4, 2010
Marc Faber: Buy Some Gold...
Marc Faber: Buy Some Gold Every Month “Forever”
“Gold is not the liability of someone else…its quantity cannot increase at the same rate as you can print money, which will eventually…weaken the US dollar,” Faber told CNBC on Thursday in a live interview.
"I’m not saying that the dollar will go straight away down because other currencies apparently like the euro are even worse than the U.S. dollar at the present time,” he added. “But eventually if you print money, the purchasing power of money will lose [value] and what will happen is stocks will adjust on the upside..if you believe in equities, I would rather buy Vietnamese shares than U.S. shares because I can make the case that the economy there will grow much faster than in the United States, from a much lower levels admittedly” Faber said. “Or I would buy Indian, Chinese, Malaysian shares. I think if you want to be in the U.S. stock they are better alternative than U.S. stocks,” he added
During his interview Faber touched on the EU’s situation. He said he believes Greece will be bailed out indirectly by the ECB, but the plan won’t succeed. He also said “other counties like Spain and Portugal will also have to be bailed out eventually, and it will lead to more monetization in Europe.”
As I type gold is trading at $1132.40, gold has dropped for the first time in six days as the dollar rebounded and investors sell the metal to lock in gains after the longest rally in five months.
The Euro near term has support @ 1.3550.