Friday, May 20, 2011

Marc Faber: Dollar to turn zero invest in gold and silver

Global investment guru and commodities expert Marc Faber says the best and most enduring currency in the world is gold and silver. He also said that the value of the US dollar will fall to zero in some years.

Last week, gold price rose to a historic record of around US$1500.


Talking to CNBC Asia on Monday, Faber who publishes the highly popular Gloom, Boom & Doom report said that it is time investors put their money into gold and silver, as they are the hottest commodities that carry lasting value.


Asking investors to become "their own central banks and gradually accumulate gold reserves as a currency,” Faber said that investors are in a contest for the ugliest currency.


He said that most investors in the world have at least 70%-80% of their money in US Dollars and occasionally the money speculators may be heavily into the euro and negative about the dollar.


But he said "there is a huge overhang of US Dollars globally. If people could sell their dollars and move into something they believed in, they would do it".


"I still believe the best currency is gold and silver, and this is not the perception of most people. They believe gold and silver are speculative investments," Faber pointed out.


Faber advised investors that they should be their own central banks and gradually accumulate gold reserves as a currency, rather than speculating in gold.


Faber also recommended holding physical bullion over other gold assets and advised against holding gold assets in the US because of the risk of "expropriation" by US authorities, as they did in the early 1930s.


View the original article here

Marc Faber News

Nouriel Roubini Blog

Jim Rogers News

Bob Janjuah News

Gary Shilling News

Warren Buffett News

Dennis Gartman

Doug Kass News

Suze Orman News

Rich Dad Poor Dad