Thursday, November 26, 2015
Precious Metals are relatively inexpensive compared to Equities
TD: How do you see the precious metals--gold, silver, platinum, palladium fitting into that picture?
Marc Faber : Well, precious metals are relatively inexpensive compared to equities. So if you want to invest new money at the present time, I would recommend looking at mining companies and the precious metals. Personally, I don’t think precious metals, gold, silver, platinum, have a lot of downside risk.
But other people will disagree with me and say well, “the metals are useless, they will go lower.” That I doubt because of what I just said. With central banks coordinating policies and printing more and more money, I think some people will gradually say, “Well, if we get negative interest rates on deposits, then why not hold some gold?”
If on a ten-year Japanese bond I get only 0.29%, I would rather own gold. You understand?
So I think in the absence of anything more compelling, with grossly-inflated assets markets, gold, silver, and platinum are relatively attractive. And statistically—gold mining shares compared to the rest of the stock market are incredibly inexpensive. -- in Sprott`s Thoughts
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.
Posted by Nicole Bourbaki