Monday, November 2, 2009

Gold a Bargain Compared to S&P500 Marc Faber

"Some pundits will argue that precious metals are expensive, but this isn’t my view. Why would anyone not own some gold, rather than US dollars, when interest rates are near zero? Dollars can and will be printed en masse, whereas the supply of precious metals is extremely limited." Said Marc Faber

"…returning to the argument that gold is expensive, it would appear that it is actually still a bargain compared to the S&P 500. At present, gold sells at about the same level as the S&P 500, but if I am right about the size of future US fiscal deficits and about the Fed neglecting to protect the purchasing power of the US dollar, I could envision a time when gold will sell for at least two or three times the value of the S&P 500. Also, if an investor were convinced that equities will do better than gold, he should consider investing in a basket of gold and silver shares, which are relatively depressed compared to the price of gold." he added
If gold, for example, were to escalate considerably in price (i.e. to $2,000, $3,000, or even more) in the next few years it would have a significantly positive impact on the profitability of the companies who mine it and the royalty companies that buy it from marginal producers. For example, with gold priced at $1,000/oz., and the cost of production at perhaps $600/oz. the gross profit margin of gold mining companies would be 40.0%. If 2 years from now, however, gold were to increase to $2,000 and the cost of production were to increase by only 20% to $720/oz. then the mining companies’ gross profit margins would have gone up from $400/oz. to $1280/oz. or 220%..."

Faber The Report on US GDP Growth Was Actually Horrible

Source CNBC :
U.S. third-quarter GDP data was "horrible" and investors will soon realize that it wasn't as good as they initially thought, Marc Faber, publisher of the Gloom, Doom and Boom Report, told CNBC.com.

CNBC.com

"I wouldn’t rely on the GDP figures and I think the market will actually realize that they were quite poor," Faber said.

The figures, which pleased investors by beating analysts' consensus expectations Thursday, didn't give positive signs for personal income and unemployment, Faber pointed out.

U.S. gross domestic product grew at 3.5 percent on an annualized basis, showing that the economy was, at least unofficially, out of its longest recession since the great depression. But Faber told CNBC.com that the figures were not always reliable. "I wouldn't rely on GDP figures, you can manipulate them," he said
Read Article >>>>


Dr Marc Faber author of the Gloom Boom and Doom is an international investor well known for his contrarian investment approach. He is also associated with a variety of funds including the Iconoclastic International Fund, The Overlook Partners’ Fund, The Income Partners Global Strategy Fund, The India Capital Fund, Matterhorn Ventures, Winstar India Investment Company Limited, The China Mantou Fund, Sofaer Capital Inc, Peach Office Products, Ivanhoe Mines Limited, Equity Partners Limited and Muse Global Partners LP

Marc Faber Chooses Gold vs US Dollar

“Some pundits will argue that precious metals are expensive, but this isn’t my view. Why would anyone not own some gold, rather than US dollars, when interest rates are near zero? Dollars can and will be printed en masse, whereas the supply of precious metals is extremely limited.”


Dr Marc Faber author of the Gloom Boom and Doom is an international investor well known for his contrarian investment approach. He is also associated with a variety of funds including the Iconoclastic International Fund, The Overlook Partners’ Fund, The Income Partners Global Strategy Fund, The India Capital Fund, Matterhorn Ventures, Winstar India Investment Company Limited, The China Mantou Fund, Sofaer Capital Inc, Peach Office Products, Ivanhoe Mines Limited, Equity Partners Limited and Muse Global Partners LP

The Collapse is now inevitable Marc Faber

Capitalism has been the engine driving America and the global economies for over two centuries. Faber predicts its collapse will trigger global "wars, massive government-debt defaults, and the impoverishment of large segments of Western society." Faber knows that capitalism is not working, capitalism has peaked, and the collapse of capitalism is "inevitable."

When? He hesitates: "But what I don't know is whether this final collapse, which is inevitable, will occur tomorrow, or in five or 10 years, and whether it will occur with the Dow at 100,000 and gold at $50,000 per ounce or even confiscated, or with the Dow at 3,000 and gold at $1,000." But the end is inevitable, a historical imperative
Via marketwatch.com


Dr Marc Faber author of the Gloom Boom and Doom is an international investor well known for his contrarian investment approach. He is also associated with a variety of funds including the Iconoclastic International Fund, The Overlook Partners’ Fund, The Income Partners Global Strategy Fund, The India Capital Fund, Matterhorn Ventures, Winstar India Investment Company Limited, The China Mantou Fund, Sofaer Capital Inc, Peach Office Products, Ivanhoe Mines Limited, Equity Partners Limited and Muse Global Partners LP

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Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.