Saturday, December 31, 2011

The supply of Gold is actually contracting

Marc Faber : ....I was at the Resource Conference. This is one of the largest Resource Conferences run by Standard Charter Bank in Hong Kong. All the miners are there and all the bigshots in the commodity space. And investors that are interested in commodities are there. Ask the audience and you would think that these people have an exposure to gold. Only about five people in an audience of like four hundred had more than five percent of their assets in gold. I find this amazing. I was already at two hedge fund conferences. These are relatively intelligent people. You’d think, but none of them had any exposure to gold personally. I said to them, “You’re all intelligent people. How can you not have any gold at all? Don’t you see what is happening with the money printing in the world?” Where people, they look at gold, okay, it was two hundred fifty two dollars in 1999. It’s not fifteen eighty. They think it’s expensive at this level. What they don’t consider is by how much credit has increased over the last ten years, by how much the world’s population has increased over the last ten years, by how much the supply of gold has increased. It’s not increasing, it’s actually contracting. In the next five to ten years, the total gold supply in the world will go up by three times at three point eight percent. No more. You know, you mine something, it’s gone. It’s no longer there. And so the supplies that is no longer there is like oil. You burn it, it’s no longer there. So every oil well around is dry over time.- in FSN
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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.