Marc Faber Own 25% Of His Assets In Physical Gold

Sprott Resources organized an online round table. Several leading investors voiced their opinion about the ongoing economic evolution, central planning policies and precious metals. The webcast is open for everyone after registration.

Attendees at the round table were Marc Faber, publisher of the economic and financial report Gloom, Boom and Doom Report; John Embry, Sprott Asset Management Chief Investment Strategist; Rick Rule Sprott, Global Resource Investments Founder; Eric Sprott, Sprott Asset Management Founder.

In this article, our focus is on Marc Faber’s points of view. The following are several quotes from the round table.

Faber about the recent announcement of the US Federal Reserve regarding tapering:

When the Fed began Quantitative Easing 1 (QE1) in 2008, I said it would continue until QE99. So I’m not so surprised by the “no tapering decision.” But this money printing has numerous unintended consequences and actually does not help the economy much. Asset purchases benefit maybe 1% of the population, the super-rich. I’m not complaining because I own stock, bonds and real estate, but from a social point of view, it’s undesirable because it creates widening wealth inequality and dissatisfaction among the majority of voters. This could lead to more votes for a populist leader who will then tax the wealthy more heavily.

Faber explains the massive gold accumulation by China, India and Russia:

In the Far East, we have a tradition of owning physical gold, but what is new is the Chinese government encouraging citizens to own gold. I believe that in the face of political instability and a lack of faith in the U.S. dollar, Asians will continue to accumulate physical gold and silver.

Faber justifies the share of precious metals in his total portfolio:  

I recommend an asset allocation of about 25% in equities; 25% in fixed income, securities and cash; 25% in real estate; and 25% in precious metals—gold, silver. I think I have around 25% in gold whereby I don’t value my gold. I have it and it’s my insurance policy. It is important that one day when the so-called shit hits the fan—and I think the Fed is well on its way to creating that situation—you have access to your gold, that it is not taken away.

 

Register for the webcast for full access to the round table (highly recommended).

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