Marc Faber, editor of the Gloom Boom Doom Report, was recently interviewed by Eric King.
I've summarized his most recent comments.
I've summarized his most recent comments.
- The recent rise of gold prices does not have the same level of support as the run up that started in 2009 after two years of consolidation.
- Faber views the current run up in gold prices as an extension, not a new leg up in the bull market.
- One could argue that the gold shares are not confirming the advance of gold.
- "So they have to invest in something, and so they look for real estate, they look for equities and of course they come to realize slowly, I have to say very slowly, that gold and silver are not commodities in the sense of industrial commodities, but that they are currencies. Precious metals are basically currencies that are honest because you can’t increase the supply indefinitely. You can’t have QE2, QE3, QE4 in the gold market."
- However, one could also argue that if gold continues to rise, then gold shares are undervalued.
- He seems to think that the Australian dollar is overvalued as he was astounded at the level of prices in Australia. Relative to other currencies such as the Canadian dollar, Australian dollar and even the Brazilian Real, prices in the United States are low.
- "I think people will be surprised at how high interest rates will eventually go."
- "If you print money everything will go up...and now the money printing doesn’t go into housing because we have an oversupply of housing, but it goes into equities and for Mr. Bernanke unfortunately into commodities. And this is lifting the cost of living of the median household, of the typical household in the U.S."
- "Mr. Bernanke is a murderer, he’s a murderer of the middle class and the working class."
- the U.S. has a "crony capitalism" and there could be civil unrest and secession movements in the U.S.
- in the U.S., real estate is now reasonable, not cheap.
