Not to own gold is to trust the value of paper money and the government's integrity.
No one in his right mind could trust the U.S. government any more. The government's economic statistics are distorted and there is no consensus on how to solve the budget crisis. So, yes, people should own some gold. It can correct by $100 or $200 an ounce, but you own it as an insurance policy. The world is grossly underweight gold. It is flooded with U.S. dollars. Investors might be bearish about the U.S. dollar, but international dollar reserves exceed $9 trillion. Compared to that, there is very little gold.
Tickers: SPDR Gold ETF (GLD), IShares Silver ETF (SLV), Newmont Mining (NEM), Yamana Gold (AUY), Novagold (NG), Goldcorp (GG), Barrick Gold (ABX), Anglo Gold (AU), Kinross Gold (KGC), PowerShares DB US Dollar Index Bearish (NYSE:UDN), CurrencyShares Euro Trust (Public, NYSE:FXE)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
