The global economic players will lose all faith in the United States dollar. Instead, the world will want precious metals as the only true currency available to consumers, governments and central banks. Those are the words from one contrarian investor who has become bullish on the yellow metal.
Speaking in an interview with CNBC, Marc Faber, the editor and publisher of the Gloom, Boom & Doom Report, explained that the greenback is “not a desirable currency” anymore. Though the dollar is still praised by many central banks, economists and investors all over the world.
“I think the most desirable currency will be gold, silver, platinum and palladium. I still think the mining sector has embarked on a new bull market,” Faber said. “Over the last 12 to 24 months, many sectors have had huge declines. And I see here, there are some opportunities.”
Over the coming months, Faber does believe gold prices, futures and stocks will rise significantly. He alluded to gold futures up 15 percent and the gold miner ETF GDX up 67 percent from Jan. 19.
At the time of this writing, gold is trading at around $1,220, while silver is still hovering above $15 an ounce.
Is gold the only opportunity out there right now? Nope, according to Faber, who says Asia presents a lot of opportunity for investors.
“I think that in Asia, the sentiment turned very bearish at the end of last year and especially concerning China and the Chinese economy. And as a result of that, Macau gaming companies got slaughtered,” Faber stated. “And now they are, in my view, at a relatively attractive level. They started to move up: [Las Vegas] Sands China, Wynn China.”
Faber added that there aren’t any bargains right now in Asia, but the short-term issues ongoing in places like China could lead to a “very rewarding investment destination.”
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