“Given all the unfunded liabilities and the money printing in the world and the size of the financial assets in the world, I don’t think we are in a bubble"
Dr. Marc Faber, CLSA Investors Forum 2010 in Hong Kong
Faber advised investors to build exposure to bullion via monthly purchases and avoid sinking too large a share of their total wealth into the metal, as violent pullbacks can be expected. “We can have one day a correction of 20 to 30%,” Faber said.
He noted the 1970s bull market in gold saw prices plunge 50 percent, from 195 USD to 105 USD an ounce, before then rising to more than 800 USD an ounce.
Dr. Faber also cautioned physical gold holding in the United States and Switzerland were subject to the possibility — considered remote by mainstream observers — of forced sales to the government. Precious metals investments held in the Hong Kong or Singapore banks were safer, as these jurisdictions, influenced by China, were likely to resist US political pressure on individual investors.
Source: CBS MarketWatch
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
