fight for oil, money glut-all everywhere: The famous Swiss investment professional will recommend to buy gold and silver.
When economic crises and geopolitical tensions dominate world affairs, it is to have as gold and silver. This position is supported by Marc Faber. The famous Swiss investment professional and author (Gloom, Boom & Doom Report) recently spoke at an investor conference in Bangkok. In his opinion, government bonds and bank deposits are not secure more protection from market fluctuations.
"The U.S. wants to keep interest rates low and expanding the money supply in order to reduce public debt, which is four times larger than the economic performance," Faber said, according Comodity Online. The believe that the Interest rates below the inflation rate. And that is an ideal environment to invest in gold and silver. Government bonds and financial investment on the other hand would lose its value.
What about equities? "There will be times as from 1990 until 2008 when gold is more developed than equities, and vice versa in 2009. But the key is flexibility. We do not know how the world looks like in 10 years, "said Faber.
He expects either way, still higher precious metal prices. The increasing demand for oil in emerging Asian countries and the revival of U.S. energy demand could lead to a worsening geopolitical crises in the Middle East and other oil-producing regions. This will also boost the prices of raw materials and precious metals.
Source: www.goldreporter.de
