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Marc Faber - This Will End in Disaster & You Must Own Gold

With gold consolidating recent gains and continued volatility in global equity markets, today King World News interviewed legendary investor Marc Faber, author of the Gloom Boom and Doom Report. When asked about the action in global markets Faber responded, “My view is that we made a top between February of this year and June and that we had a very sharp decline. Thereafter a rebound on the S&P from around 1,100 to around 1,200 and that we are drifting again lower and that we will break the low that we made in July/August at 1,101 (on the S&P). So we’ll head towards 1,000 I guess.”

Marc Faber continues:

“It seems to me that momentum on the downside is very, very strong. Therefore we could go into further liquidation phases and maybe we’ll head towards 900 on the S&P, that’s a possibility.”

When asked if the central planners will print more money if the stock market goes to those critical lows Faber replied, “Yes, I’m sure money printing will come back. We will not have an official QE3 announced immediately, but I think that if the stock market weakens further, they (central planners) will take some additional printing measures along with Europe for sure.”

When asked about the gold market Faber stated, “Well, we had a very strong move, interestingly, both in gold and in Treasury bonds since late June. In other words, gold in late June was around $1,450, $1,480 and then we went to a peak of $1,921 on the spot market. Then gold dropped back to around $1,700 and now we are back at $1,876.

I think a correction is overdue, yes, but you may have heard today the Swiss National Bank pegged the Swiss franc to the euro. In other words, one more currency that was perceived to be a safe haven, is no longer a safe currency because it’s pegged to a relatively weak currency, the euro.

Therefore I think investors will increasingly ask themselves, ‘If I want to hold cash and I have US dollars, they are not very desirable because of the money printer Bernanke.’ The euro, not very desirable because they will overprint money and they will probably issue euro bonds at some point and monetize them....

Continue reading the Marc Faber interview below...

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“Then they look at the pound sterling and so forth, in terms of paper currencies there is nothing really very desirable. Then people will ask themselves, ‘How can I park some cash in something that will maintain its value over a long period of time?’ Then they will look at gold and silver.”

When asked how this global money printing experiment will end Faber replied, “It can’t end happily. It will eventually be a disaster. But you understand between today and when we hit the brick wall, many things can happen. And the question an investor has to ask himself is, ‘How do I protect myself best from the eventual disaster?’ And from the journey of today to the eventual disaster, my answer is simply you have to be diversified.

You know if you look at the last two to three years, if you owned some equities around the world, if you owned some property, if you owned some gold and if you owned some cash, you didn’t do all that badly. But recently stocks have been down and gold has been up, so I think gold is a good hedge against financial assets.”

This is a tremendous interview with one of the greats and Faber delivers. He discusses the gold and silver markets in detail as well as what investors should be doing with their own money. The KWN audio interview with Marc Faber will be released shortly and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

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