Saturday, April 24, 2010

Marc Faber Remains Gold Bull

Marc Faber, publisher and editor of The Gloom, Boom & Doom Report, says the gold bull market will continue to run, and paper currencies will lose value as the printing presses of central banks around the globe are running non-stop.

In an interview with Kitco News, Faber said this, “If you have $100 today, you buy that much less in terms of a basket of goods and services then you did ten years ago – paper money has already lost a lot of value and in my view it will continue to lose value. The price of gold will adjust on the upside according to the loss of the purchasing power of money.”

Gold is being considered more and more a currency by a growing number of people, the reason it has been decoupling from the U.S. dollar and the usual inverse relationship between the two not performing as usual on a consistent basis.

Faber agrees, not only looking at gold alone as a currency, but other precious metals as well.

3 comments:

Laura said...

But, I have ONE ARGUMENT, what good is GOLD if we can't use it to buy goods & services? The stock market has gone up as much as gold stocks, and the problem I have is that we can't trade gold coins for goods, so it is of NO use to us personally, on that basis alone! And, if they ever change to a WORLD CURRENCY like they desire to do, then, gold will plummet once again, and people holding gold coins will lose 1/2 their value, and that will make people very mad.

Anonymous said...

my dear laura you need to know when to trade it....after it goes up, but before it goes down...its not about holding it for ever or actually using it for money or barter. that is possible in extreme financial collapse, but most people buy gold as an investment, to trade it later when its high(worth alot) for other kinds of money

Anonymous said...

What CAN you use to buy goods&services, except the currency of the country you happen to live in ? And yet, do you keep everything you have in that currency ? What can you buy with your stocks ? With your bonds ? Exactly, nothing. You first sell them for money, and then buy stuff. Except in extreme situations, it's no different with gold.