Marc Faber: Gold And Miners Most Attractive Relative To Other Assets

During his last CNBC interview, Marc Faber commented on the current state of the markets. He is clearly bearish on equities as he expects a long overdue correction (which could be even 20%). His best advice currently is gold and the mining sector. Below are some quotes from his interview.

In general, the gold mining sector is incredibly depressed. All these smart Fed watchers and Fed members (super bears about gold) came out with sell recommendations about gold. They have never owned an ounce of gold in their life. On all their interviews, they do not tell that the S&P 500 is up only 10% since October 2007 while gold is still up 75% over the same period of time.

Basically, gold has had a huge correction. Sentiment is ultra-bearish currently. The gold mining stocks have been decimated. The gold mining industry is in a worse shape today than it was at the low of the market in 2008.

Given the negative sentiment, Marc Faber likes investing in gold. Why? Because it is a buy RELATIVE TO other assets. Investors should not look at it necessarily in absolute terms, but in comparison to paintings, colletibles, the Dow Jones, S&P 500, the Russell 2000, ea.

He adds to it that the S&P 500 was trading at 1554 in March 2000 which is only 10% higher today. Gold has been an ecellent investment because it is 5 times higher right now. The investment has worked on a long term basis, not for investors who joined the hype in 2011.

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