Gold Set to Rise in Uncertain Times
Source: Commodity Online (4/14/10)
"You'd see people flee from all paper currencies into precious metals."
Faber warns that come the next crisis, "you'd see people flee from all paper currencies into precious metals: the question is will there be a crisis of confidence in all paper monies and what will the reaction of investors be?"
On the immediate horizon, Faber expects gold to rise, and wouldn't rule out a move to the US$950-US$1,000 level, where gold broke out last year. "We're just coming out of a seasonal period where gold is often weak, and heading into a period of seasonal strength, so it's possible gold may start outperforming here," says Faber.
Investors should avoid bonds and cash over the next 10 years and choose stocks instead, he said, but warned that printing money will lead to an economic collapse in the end. "But honestly,” concludes Faber, "I'm telling everybody in the world the same thing. I own my gold and I will never sell it."