Subscribe via Email:

Sunday, May 22, 2011

Gold is My Favorite Currency

Dr. Marc Faber author publisher and editor of the Gloom, Boom & Doom report talking about his love for Gold calling it his favorite currency : ..."...I am not a perennial gold bug. But, when governments spend far more than they collect in taxes (large fiscal deficits), and when central bankers engage in reckless monetary policies and, instead of treating the causes of the problems (excessive debt growth), treat the symptoms (deflationary forces), gold as a currency does make a lot of sense. I need to clarify one point. When gold recently broke out on the upside above $1,000 per ounce I maintained that, whereas in the past the $1,000 level had been an area of resistance, with gold now above $1,000 it had become an area of support. I also said that if gold failed to hold above $1,000, I would become extremely concerned; and that in such a case a sell-off to $800 could not be ruled out, as failed breakout moves can lead to violent counter-movements. My feeling is that gold will hold above $1,000 and will trend higher over time. In fact, the breakout move of gold above $1,000 could be as significant as the decisive breakout move of the Dow Jones above the 1,000 level in early 1983..."

Related ETFs: SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG) Agriculture Fund (DBA), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) United States Oil Fund (USO), SPDR Gold ETF (GLD), Powershares DB Agriculture ETF (DBA) SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Popular Posts