Tuesday, September 17, 2013

Hold Physical Gold to survive The Coming Deflationary Depression

 Marc Faber : “In a collapse, over time, everything goes down but some assets go down more [in price] than others. Traditionally, it is best to hold cash. The key question is: what kind of cash and in which form? For instance, one could hold its cash in bank deposits, but not all cash will be repaid. Cyprus is a good example. You will get your cash on a bank deposit back in some sovereign countries but not in others, depending on the quality of banking system (although in a collapse, most likely, all banks would suffer). Moreover, one needs to make a choice of the currency. The dollar could look good for the time being, but eventually it could become the worse currency (which is what I expect). The question here is the meaning of “weakness” … a currency is weak against what exactly? As all central banks are printing money, their value all go down simultaneously. In such an environment, gold is a good solution. This is the rationale to hold some money in the form of [physical] gold. Cash is not necessary the best investment.


Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

LinkWithin

Related Posts Plugin for WordPress, Blogger...