Nowhere to Hide: Did Doctor Doom Marc Faber Just Abandon Gold?
March 28th, 2013
Well known economist and publisher of the Gloom, Boom and Doom Report, Doctor Marc Faber, raised eyebrows this morning when the long-time proponent of being your own central bank was quoted by Bloomberg as saying that the coming crisis will be so severe that you won’t even be able to hide in gold.
So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide.
Even in gold, it will be difficult to hide.
As a well respected contrarian investment adviser, Faber’s comments will no doubt be used by those who shun gold as a wealth protecting investment vehicle to scare those who have taken financial shelter in the 5,000 year old medium of exchange. In fact, in the Faber Bloomberg interview host Alix Steele actually claims that gold has “not held up as a safe haven,” an asinine statement considering that the precious metals has risen precipitously to new all-time highs from a price of $750 per ounce during the throes of the financial crisis in 2008, to about $1600 today.
But did Faber really mean that gold as a store of wealth is no longer viable?
Has he abandoned his long-time principles of owning hard assets during financial, economic and political turmoil?
For the last five years he has vehemently argued that all currencies are doomed, except for gold:
In today’s world, all paper currencies are not particularly desirable. All governments will print money. All governments will have fiscal stimulus packages as soon as something goes wrong. And all paper currencies will lose in their purchasing power. So, there’s only one ultimate currency and these are precious metals, specifically gold. (May 5, 2010)