Marc Faber: Gold is Still Cheap!

Marc Faber, of the Gloom Boom & Doom report

Gold’s increase over 2% in the last week has the sheep crying bubble! Marc Faber, of the Gloom Boom & Doom report & regular CNBC contributor, earlier today told CNBC, If it were a bubble a lot of people would have gold. The whole world would be trading gold 24 hours a day.  he went on further to say, But 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. (When adjusted for inflation & Dollar devaluation)

According to Marc, gold is under-owned by individuals & investors. He told CNBC in reference to a resent investors conference,  I asked the investment professionals in attendance if any had more than 5 percent of their personal assets in gold. No one raised a hand. This echoed a recent sentiment of Ben Davies, Director & CEO of Hinde Capital, when he said, 0.7 percent of global assets invested in gold, the precious metal remains under-owned.

Mr. Faber also stated on his blog: Continue to accumulate gold. The best way is to dollar cost average every month. Gold may decline in the short-term, but the long term trend is up. Marc went on further to say, If the US ever needed to back the dollar with gold, it would take a price of $7500 per ounce of gold to accomplish this. Thus, gold remains an attractive asset. This in no way is  a promise gold will climb to those lofty heights but it is  a well taken point.

We still believe gold is cheap, we also believe that accumulation is the path all investors should be on to fulfill their commitments in a Tangible Asset Portfolio. A TAP is diversification & insurance supplementing all other investments you may hold. Take Faber’s advice, Continue to accumulate gold.

Read more: Gold Is Still Cheap Despite Record Surge: Marc Faber

Marc Faber Blog: Gold Is Still Under Owned By Individuals And Institutional Investors

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