Marc Faber is staking precious metals.

“I have been advocating buying gold for the last 40 years. I am still buying it,” said Marc Faber in his latest interview. 

“Gold price has performed reasonably well compared to the consumer price index over the last 50 years.

If we take as a starting point 1971 or 1970, the gold price was at 35 US dollars an ounce, and now it is around 2,000 US dollars,” he said. 

He noted that the price of Campbell tomato soup has not appreciated as much as gold over the same period.

“Home prices have probably gone up more than gold, but if it is in  South Africa, probably not,” he said.

“If we take as a starting point 1971 or 1970, the gold price was at 35 US dollars an ounce, and now it is around 2,000 US dollars”

MARC FABER

The safety of gold means that it has not been the best investment.

In other words, gold investments won’t make you rich, but they will preserve what wealth you have against inflation. 

Marc Faber is staking precious metals and sees value in gold stocks

“Underperformance in gold mining stocks, which have not appreciated since 2015, is incredible,” he said.  

He is also bullish on oil despite the global recession but thinks oil prices could rise due to supply disruptions. 

Persistent inflation is why Marc Faber is staking precious metals

He thinks we could see a temporary pause in inflation, then moving much higher.

“When the price of butter and cars go up, it is a symptom of inflation. 

The prices of houses, stocks, collectables and art are another symptom of inflation,” he said. 

“Underperformance in gold mining stocks, which have not appreciated since 2015, is incredible”

MARC FABER

Lower-class and middle-class people get hurt the most when necessities go up. 

Someone with an income of 10 million dollars a year doesn’t care when the price of butter goes up 20%.,” he said. 

He believes inflationary times are an opportunity for rich people to become even wealthier. 

“It is where we are in the economy, with the super rich doing well, the rest are struggling,” he said.  

He thinks inflation rates vary according to household income.  

“Governments have a vested interest in understating inflation and do so with all kinds of seasonable adjustments,” he said.

“Markets in Asia, Malaysia, Indonesia, Vietnam, and Thailand are not extremely cheap, they are in a buying range, and they could still go down” – Marc Faber

Marc Faber is staking precious metals, but where else does he see value?

He thinks property stocks, particularly in Hong Kong, should be higher.

“Major property groups are owned and controlled by families self-financed with no debts,” he said. 

He also thinks Latin American markets and the South African mining sector are depressed. 

“Markets in Asia, Malaysia, Indonesia, Vietnam, and Thailand are not extremely cheap, they are in a buying range, and they could still go down,” he said.  

Stealth easing, as Marc Faber is staking precious metals

He thinks the Fed does quantitative easing doesn’t filter equally into the economy.

“So when the Fed buys bonds, the money first flows into the financial sector to benefit the bondholders, then filters down,” he said.  

The problem with money printing is that prices do not go up evenly but unevenly and with different intensities, which creates winners and losers,” he said. 

He sees stealth easing policy, citing the thin spreads between junk bond and treasury bond yields. If money were tight, this spread would be so thin.  Since last October, the Fed has been easing. 

He also likes commodities.