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.