Sunday, March 8, 2015

Faber : China Preparing Gold backed Yuan

GSR interviews MARC FABER - March 4, 2015

Dr. Faber Summary:

    China boasts the most trading partners of any nation (124).
    Dr. Faber believes the PBoC may have accumulated thousands of tons of gold bullion reserves, in anticipation of a gold backed Yuan / renminbi.
    The modus operandi includes the gradual weakening of the Yuan, to the benefit of the manufacturing and exporting sectors, followed by the introduction of a gold-backed currency.
    The resulting Yuan devaluation will be offset by the increased value of the massive PBoC gold stockpile.
    The theme of corporate share-buyback announcements is emblematic of an equities market bubble.
    Dr. Faber expects emerging market equities to outperform US shares, presenting an opportunity for wise investors to reap rewards via foreign shares.
    Diversification is the ideal panacea for market uncertainty / volatility.
    Dr. Faber distributes his funds among cash, real estate, stocks, bonds and precious metals (25%).
    Eventually, precious metals holders could be vilified for their windfall profits and targeted by unscrupulous officials.
    Therefore, it is advisable to relocate gold investments to safe havens located in Asia.

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.

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