Capital Gold Group Report: Gold Run Not Over: Marc Faber
Hong Kong (Kitco News) -- The
rising price
of gold is far from over since paper money will continue to lose value,
according to Marc Faber, editor and publisher
of The
Gloom, Boom & Doom Report.
“If you have $100 today, you buy that much less in terms of a basket
of
goods and services then you did ten years ago – paper money has already
lost a
lot of value and in my view it will continue to lose value. The price
of
gold will adjust on the upside according to the loss of the purchasing
power of
money,” Faber said in an exclusive interview with Kitco News.
Still bullish on gold, Faber views precious metals as currencies, not
commodities. He said that precious metals are currently his currencies
of
choice. Currently, stronger currencies such as the Canadian and
Australian
Dollar are still vulnerable to a slowdown in the Chinese economy, he
said on
the sidelines of the World MoneyShow in Hong Kong.
Faber said that he continues to buy the yellow metal, “If someone is
rich
they should buy a ton every month. “
He also said that everyone should buy gold because of the low US
interest
rates, “At zero percent interest, I don’t see why someone would not have
part
of their money in gold and silver.”
Faber said that "as far as the eye can see, interest rates under
Bernanke will stay at zero and below." He noted that the
current Vice Chairman of the Fed , "Janet Yellen, another totally,
ignorant economist, removed from any reality, said herself six months
ago, ‘if
I could implement interest rates below zero, I would do it.’ So now you
know
what the policy in the US will be,” Faber said.
He also said that if gold prices substantially rise one day, there
could be
expropriation. “The Americans could force the Europeans to do the same –
once
they have all the gold in the world they would re-value it at $10,000 an
ounce," Faber said.
Goldman Sachs: Politically Motivated Ordeal
“Obama has lost the trust of the people; his approval
rating is worse than
Bush at this stage in the presidency. When people are dissatisfied in a
democracy - you go after a minority to target – in the case of America
you go
after Goldman Sachs because it is the symbol of Wall Street and
excessive money
creation and there is also a tone of anti-Semitism there.”
He added, “Mr. Obama will do everything he can to get
re-elected
and that may involve some very bad decisions. He is like a roman
emperor; he
just gives out bread to the mob and produces games and circuses.”
Overall, Faber has little hope for financial reform in the U.S. “The
U.S.
should have less regulation and not more regulation – that is the origin
and
cause of the crisis.”
Market Manipulation
On the subject of market manipulation talk, Faber said that if market
manipulation exists then it is good for gold buyers since it keeps the
price
down.
"If you have manipulation to keep the price down, it eventually goes
ballistic. So, all the people that are bitching about the manipulation
of
silver and gold should be happy that it is manipulated because it still
gives
them an opportunity to buy it at a depressed priced,” Faber said.
Faber said he suspects that there may have been some efforts by
Central
Banks to keep the price down but wouldn’t go as far to call that
manipulation.
“If someone talks about manipulation, well, I think the whole world
through government intervention has become manipulated so it is very
difficult
to make forecasts,” said Faber.
China Bubble?
Is China headed for a bubble? “For sure,” said Faber. “The symptoms
are
there. It is a bubble when something goes substantially above the trend,
when
there is excessive credit gross and when there is excessive speculation.
All
these elements are in China,” said Faber who predicted the Japan and
NASDAQ
bubble collapse.
slowdown, he said.
Greek Tragedy
A Greek bailout is bad news for the euro, said Faber. “It increases
the
liabilities of the government and I really think Greece will go bust.
What does
Greece produce? Olive oil and tourism. This is not sufficient to bail
out
Greece.”
