The time to buy gold is now and the Federal Reserve will launch the fourth edition of quantitative easing soon, warns Marc Faber, editor and publisher of the Gloom, Boom & Doom Report.
After the historic Brexit referendum, Faber believes the United States central bank will print more money and use last week’s EU vote as an excuse. This echoes what Peter Schiff, president and CEO of Euro Pacific Capital, recently said. ( Peter Schiff: ‘Janet Yellen can blame her failure to raise rates on Brexit’)
Due to the money printing ways of Janet Yelle and Co., the yellow metal will soar.
“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” Faber said told Bloomberg News from Hong Kong. “In that situation, you want to own some gold.”
Faber noted that he typically purchases gold every month. He likes gold stocks, but he thinks they need to correct first after making significant gains this year.
Gold prices reached a two-year high on Wednesday as they settled at $1,321. Silver finished the trading session above $18 for the first time since September 2014.
Year-to-date, gold is up 25 percent, while silver is up 28 percent.
So, what about global economic growth? He thinks that Brexit has had very little effect on the international market because growth rates have already been very little.
“Global growth has contracted, in other words, growth rates have been reduced and many countries are in recession already. That has nothing at all to do with Brexit,” Faber said. “Brexit is actually not about an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers.”
More than $3 trillion was wiped out in the Brexit aftermath.
Gold bugs are at it again, any excuse to buy overpriced gold.
If you did not buy at the lows in Jan, it is to late now, you missed the boat.