Marc Faber: Gold Is Still Cheap

"I don’t think it’s really a bubble. I think gold is maybe cheaper today than it was in 1999, when it was $252.”

Marc Faber

Marc Faber: The Dow Already Lost 80% Of Its Value

"In gold or silver terms, the Dow Jones over the last 10 years has already lost over 80% of its value."

Marc Faber

Marc Faber: We're Worse Now Than In 1970's

“Well I think we have had in the 70’s rapidly escalating commodity prices, and in some cases they went up much more than what we’ve seen so far in the last ten years.  Of course the financial position of the US is much worse than what we had in the 70’s.  In the 70’s, total credit as a percent of the economy was just at 140%, we’re now at 379% and we have the unfunded liabilities which we didn’t have at that time.  So I would say the financial position of the US has continuously worsened over the last 30 years.”

Marc Faber

Marc Faber: America Is A Failed State

"A level-headed, knowledgeable, and intelligent American friend of mine (she has been buying gold for years) recently observed that, 'Only when the American people insist that sound business practices and moral standards be brought back will we be able to give the people of this country a future.'

Unfortunately, I believe that the ongoing moral decay among US politicians and the business elite, the irresponsible fiscal and monetary policies, the decline in educational standards and infrastructure, the trade and current account deficit, the weak US dollar, and the heavy-handed and ambiguous meddling in foreign affairs by US officials, are all pieces in a puzzle, which when assembled reads: Failed State."

Marc Faber

Marc Faber: Doomsday Is Coming, Go Buy A Property In The Middle Of Nowhere

Marc Faber: Global Systemic Collapse Would Relatively Benefit The U.S.

Marc Faber: Time To Sell Stocks

"The US stock market has now doubled from its low. In other words, there are only three occasions in the last hundred years when the stock market in the US doubled within two years.

One such occasion was in 1934, coming off a very deeply oversold condition in 1932 and the other one was in 1937. After 1937 and 1934, the 12 months return were both negative.

I would be a little bit careful here to just buy the US because investor sentiment is very positive. The volume has been relatively sluggish and the market is extremely overbought by any statistical model.

My view is that the US market will eventually join the emerging markets on the downside because if you take a bearish view about emerging economies, you cannot be too optimistic about the US because for many US corporations, 50 percent or more of their profits come from emerging economies."

Marc Faber, CNBC

Marc Faber: I Think We Are All Doomed

"I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.

For the investor, the question is: How do I navigate through this complete disaster that is going to unfold? And I think if you look at different asset classes – real estate, equities, bonds, cash, precious metals – I suppose that you have to be diversified. I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%? If everything I bought in my life had only gone down 10-15%, I would be very rich, because a lot of things became worthless, especially loans to friends, and bonds, and so forth.

Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company, than by being the lenders to companies, and the lenders, especially, to governments."

Marc Faber

Marc Faber: The Endgame Is Near

“The only true currencies that exist today are gold, silver, platinum, and palladium. This crackup boom will end very badly, but before it ends badly, we’ll have money printing, very high inflation, and when everything fails, the US will go to war. They’re already in war, but they’ll increase it.”

Marc Faber

Marc Faber: The U.S. Will Default

"In the developed world we have huge debt to GDP, in terms of government debt to GDP and unfunded liabilities that will come due, and these unfunded liabilities are so huge that eventually these governments will all have to print money before they default."

Marc Faber

Marc Faber: Real Estate Is Cheap

"Faber is not calling a bottom in US real estate, but he points out that relative to other asset classes, real estate is cheap. He would consider buying a home as long as you are prepared to live in it for a while. Faber also postulates that if housing continues to decline, commodities and stocks may sell-off even more."

CommodityOnline

Marc Faber: Emerging Markets Could Fall 30%

"Faber remains very bearish on emerging markets in general (Brazil, India, etc). He notes that many failed to make new highs in January, despite favorable market conditions, which could indicate a major top in some emerging markets. Faber thinks emerging markets could fall between 20-30%. In fact, this would be a great buying opportunity for investors."

CommodityOnline

Marc Faber: Commodities Have Gone Parabolic, Ready To Fall

"Faber is concerned about commodities, as they are currently very overbought by almost any measure. He goes on to say that commodities seem to have reached the parabola stage--going straight up, which is usually the very end of the move. Yes, it could last longer than anyone expects, but at some point prices will collapse again, as they did back in 2008.

This cycle, Faber notes, always occurs as higher prices lead to an increase in supply, which eventually overwhelms the market causing prices to fall. The cycle is longer for industrial commodities compared to agricultural prices as it is harder to build a new copper mine than it is for a farmer to plant more soybeans.

This cycle will play out even with the Fed's money printing. Investors should prepare for some downside volatility in commodity prices."

CommodityOnline

Marc Faber: Whether You're Bullish Or Bearish, Invest In Oil

"If I invest today, I am considering the following: it is conceivable that because of ultra expansionary monetary policies in the world, and ultra expansionary fiscal policies in the US in particular, we have a temporary crack up boom. And the demand for oil in the western countries which has been declining since 2008, starts to pick up, and combined the oil demand in the world surprises on the upside, and pushes up oil prices, which would be beneficial for the oil producers, in particular Russia and Kazakhstan. Or you have what I think eventually happens: a complete systemic breakdown. I am the most bearish person long-term. If there is a complete breakdown, as I described with money printing and war, you want to be in commodities, specifically oil, because during war times commodity prices go ballistic. So whether you are very bullish or very bearish you should invest in oil."

Marc Fabers

Marc Faber: Inflation Currently At 8%

"The annual cost of living increases are more than 5% today and the BLS is continuously lying about the inflation rate, including Mr Bernanke, he's a liar. Inflation is much higher than what they publish. I think that inflation is between 5% and 8% per annum in the US, and in Western Europe, a little bit lower, also 4-5% per annum."

Marc Faber

Marc Faber: You Can't Spend Yourself Out Of Misery

"I think what should happen in the U.S. is for the president to tell the U.S., you have to tighten your belts.

We have to go through hard times for five years to repair the damage that was committed over 20-25 years by the Federal Reserve, by the Treasury, by the politicians, and somebody has to tell the truth. But the politicians keep on fueling the illusion that you can spend yourself out of the misery, and that by printing money you will improve the economy, which is not the case."

Marc Faber

But it does appear the economy has been improving.

Marc Faber On Money Printing

"If you print money, and you have huge fiscal deficits, it would be horrible if the data isn’t any better than it is. So we have a crack-up boom. The question is, how sustainable is it and how healthy is it? It’s all money printing and fiscal deficits. One day the burden of these deficits will have to be paid by someone.  The economy is like a drug addict and you are not going to solve this by injecting more drugs."

Marc Faber

Marc Faber Now Buying Treasuries

"Bernanke should resign.  I'm now buying Treasuries."

Marc Faber

Marc Faber: The Economy And Politicians Are Bullshit

"I think he's done a horrible job and I think that will continue, I think he is a dishonest person, and nothing has changed. Some politicians are more honest than others.  I don't think that I have a very high regard for politicians, I have a high regard for businessmen and for people who work, and not for people who abuse the system continuously.

And in comparison to other politicians, I think he came in on a platform as a president that would want to change the government in Washington, and actually he's made it worse.  We foreigners, we just laugh at someone like Mr. Obama.  I was very critical of Mr. Bush, but at least he had one line and he stuck to that line, and at least he set out to do a thing and he was relatively straight on the thing that he did.  He may have been wrong, but at least he didn't change his mind continuously, and didn't prostitute himself."

Marc Faber

Marc Faber: Own Gold Over Cash

"Cash at 0% doesn't accumulate wealth either. The moment central banks implement monetary policies where they keep interest rates negative in real terms, in other words interest rates are lower than the rate of cost of living increases, then it is very difficult to value anything. The only thing I can say is, Mr Ben Bernanke, Chairman of the Federal Reserve, and other central banks, they can print an unlimited quantity of money, but you cannot print gold. Gold is limited by its annual supply of around 2,500 tonnes annually. So it is not that gold is going up, it is that the paper value of money, the purchasing power of money is going down vis-à-vis a unit of account, which is gold."

Marc Faber