The Best Currency Is Gold and Silver, Says Marc Faber
Business Intelligence Middle East
the Swiss fund manager and Gloom Boom & Doom editor predicted
the value of the dollar in the long term will be zero and advised
investors to become "their own central banks and gradually
accumulate gold reserves as a currency".
on Monday to CNBC
Asia, Faber said: "We are in a contest for the ugliest currency".
have at least 70%-80% of their money in US Dollars, he said, adding
that occasionally the money speculators may be heavily into the
euro and negative about the dollar but "there is a huge overhang
of US Dollars globally. If people could sell their dollars and move
into something they believed in, they would do it".
believe the best currency is gold and silver, and this is not the
perception of most people. They believe gold and silver are speculative
investments," Faber added.
In a reply
to a question from a viewer, Faber said investors "should be
their own central banks and gradually accumulate gold reserves as
a currency", rather than speculating in gold.
holding physical bullion over other gold assets and advised against
holding gold assets in the US because of the risk of "expropriation"
by US authorities, as they did in the early 1930s.
The price of
spot gold jumped closer to US$1500 today, reaching a new all-time
high of US$1497 per ounce.
Fear of inflation...the
high oil price...extreme financial difficulties [for some] Eurozone
nations...the US debt-crisis...problems in the Arab world...and
the situation in Japan...There are more than sufficient reasons
why the gold price further extended its gains to a new all-time
high," writes Wolfgang Wrzesniok-Rossbach in his latest Precious
Metals Weekly at German refining group Heraeus.
interest-rate hike in Europe has not had the ability to change the
trend, nor has the relatively restrained demand for bars and coins,
observed not only in Germany but also in Asia."
the rest of the article
Marc Faber [send him
mail] lives in Chiangmai, Thailand and is the author of Tomorrow's
© 2011 Business
Intelligence Middle East
Best of Marc Faber