Wednesday, August 10, 2011

Silver (and Gold) are the best currencies - Marc Faber

The best currencies are gold and silver, but most people don’t view precious metals this way. They view them as speculative investments.
It is true that we are in a contest for the ugliest currency. But it isn’t true that people are heavily positioned in Euros. Most well-to-do people around the world have at least 70% to 80% of their money in US Dollars. Occasionally the speculators may be weighted towards the Euro, but globally there is a huge overhang of US dollars globally. If these people could sell their dollars and move into something they believe in, then they would do it.
Conceivably, the US Dollar could rebound from here. But long term, the projection of the US Dollar will be preciously its intrinsic value – that is zero.

No comments:

Post a Comment