It’s getting to be Marc Faber time again. Faber shines when economic uncertainty is at a high, as well as when gold is moving up. Both of these things are true today, and Faber has been getting quite a bit of press attention.
“I’m positive [that] gold GCG5, -0.47% will go up substantially [in 2015] — say 30%,” said Faber, Mr Gloom Boom Doom Report, at Société Générale’s global strategy presentation in London on Tuesday.
“My belief is that the big surprise this year is that investor confidence in central banks collapses. And when that happens — I can’t short central banks, although I’d really like to, and the only way to short them is to go long gold, silver and platinum,” he said. “That’s the only way. That’s something I will do.”
In 2015, thus far, investors have sent the four-month gold contract up 4.1%.
“We simply have highly inflated asset markets. Real estate is high, stocks are high, bonds are high, art prices are high, and interest rates and short-term deposits are basically zero,” Faber said. “The only sector that I think is very inexpensive is precious metals, and in particularly precious-metals stocks.”
“I don’t think they are that cheap. Valuations are not expensive, but they are not the bargain of the century. But I believe some time in the next six to nine months emerging economies will become relatively attractive.”
Marc Faber sees the gold play as a short against central banks.
“I think people will wake up finally and say, if they can short central banks, that is the trade of the century,” Faber said Tuesday on CNBC.
Eventually, “[t]he central banks will be exposed for all the fraud they commit.”
“My view is that when confidence in central banks finally collapses, then gold has a 30 percent upside potential, easily, this year,” he said.