TGR: You've talked about how U.S. stocks are overpriced
compared to economic reality, but what about the junior mining market
where the disconnect between the prices of gold and equities is the
Marc Faber : Junior mining stocks got hit very hard, for sure. I am on
the boards of several exploration companies, and I can tell you that
gold mining is a very tough business and it requires a lot of capital.
One problem is that exploration companies have no cash flow. Every
month, they bleed more cash to keep on drilling and to maintain
overhead. If gold and copper prices do not recover, then a lot of
exploration companies will simply not have the money to continue
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.