Dr Doom tips glittering, tense future
Paul Garvey
Wednesday, December 07, 2005
IN A prediction that would make even the most bullish of gold bugs blush,
Hong Kong-based investment adviser and fund manager Marc Faber has forecast
that gold could reach as high as $US3600 per ounce in the not-to-distant
future.
Addressing the Commodity Investment World 2005 forum in Sydney on Monday,
Faber told the audience that commodity markets were only in the fourth or
fifth year of what will be a sustained 20-year run of strong commodity
prices.
Faber's upbeat predictions were based upon his assessment of the economies
of the United States and China. He said the "stupid" political and economic
leadership of the US, combined with the growing debt and housing bubbles
among its population, would serve to continually erode the value of the US
dollar and in turn drive up the value of gold.
Faber pointed to a rise in personal spending as a percentage of income (from
less than 77% in 1982 to more than 88% at present), a fall in personal
savings (from just under 12% to less than 2% over the same time frame) and a
substantial cut in personal taxes to illustrate the excessive consumption
currently out of the US that will both hurt the US and benefit China.
Using a vast array of charts and indexes to back up his assertions, Faber
also said strong continued growth out of China would help push commodity
prices on a continued bull run.
Addressing the audience of institutional investors and fund managers, Faber
said investment houses should overweight their investments in Asia and
natural resources for the long term.
On an ominous note, Faber - who also publishes the monthly 'Gloom, Boom and
Doom report - warned that rising commodity prices and increasing uncertainty
over supply could lead to considerable international tension.
- Forums
- ASX - By Stock
- GOLD
- marc faber says $3600 an ounce lol
marc faber says $3600 an ounce lol
-
-
- There are more pages in this discussion • 60 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)