Oil at Top of Marc Faber's Investment List

Citing the extraordinary high rate of money printing around the world by central banks, with the worst culprit being the Federal Reserve, Marc Faber recommends investing in oil as the top way to grow and protect your wealth.

Faber said in a CNBC interview, "We have money printing around the world and particularly in the US and that has led to very high food inflation and inflation in energy prices. In low-income countries like China, India, Vietnam and so forth, energy and food account for a much larger portion of personal disposable income than in the United States.

"So these countries are suffering from basic high inflation, and that reduces the purchasing power of people. So I think the monetary authorities in emerging countries are going to have to tighten or let inflation accelerate, both of which are not particularly good for equities."

Faber added oil investors will win either way because if inflation rages, that will ultimately lead to disruptions around the globe, and if we move out of the recession, demand for oil will rise. Either way, those investing in oil will win because of rising prices.

This works as well with other commodities, especially those that haven't soared too much, e.g. rice.

Faber also said energy equities should do well in the year ahead.

As far as places to invest, he sees the U.S. and Europe presenting better investment opportunities in 2011.