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Central Bank Gold Sales
http://www.investorshub.com/boards/read_msg.asp?message_id=8327291
EDV Net Asset Value
Ben Bucks...
Schwab StreetSmart Pro software.
how about this:
Good, purchased a bundle at US$.84 and US$.85
We have AngloPlat news conference before market opens on Monday... If AngloPlat does make favorable mention of ANO (50:50 chance) and/or its capex plans, should be a decent spike up. If not, sell most of this added position and going back to cash...
ANO caught up in the Anglo American exit strategy (from SA to London) before this deal is likely consummated. SA Govt holds the cards in regard to forex controls so Anglo cannot get the cash out until SA Govt approves and I believe this ANO BEE joint venture will benefit.
Frank, any comments on ANO...?
AngloPlat has their annual results news conference Monday... Would think it is 50:50 chance something about ANO joint venture @ Ga-Phasha/Twickenham would be discussed...
may buy one, wish it had a bit more trunk space though...
Ferdi Dippenaar, CEO, Great Basin Mines
Allan Seccombe
Posted:
[miningmx.com] -- FERDI Dippenaar, newly appointed CEO of Great Basin Mines, was intercepted by Miningmx over lunch during the Indaba Mining Conference. This is what he had to say...
http://www.miningmx.com/events/indaba_2006/886652.htm
MININGMX: Ferdi, what are you up to now?
FERDI DIPPENAAR: Well I’m enjoying myself with Great Basin Mines, getting the company up and running. Alot of excitement, quite a challenge, but I’m really enjoying myself.
MININGMX: Ok. What exactly are challenges that you are trying to overcome at the moment?
FERDI DIPPENAAR: Well it’s getting our project feasibility badge, it’s a good project, but we need to finalise the numbers and of course start building it. We need the production, we need to show what the mine can deliver. That’s definitely what we need to do. The other one is resolving our disputes with our partner Hecla on our Ivanhoe project which is a lot further advanced than the Burnstone project.
MININGMX: What kind of grades are you seeing at Ivanhoe?
FERDI DIPPENAAR: Well, we only have one intersection and on both sides there is a decline, and on the one sides it was 40g per ton and the other side 4g per ton. But that’s the nature of the ore body. Very typical of Nevada underground, but there are more intersections to come, more sampling and who knows maybe some good news.
MININGMX: Will we see any corporate action from you guys?
FERDI DIPPENAAR: Early days, but we would love to do some absolutely.
MININGMX: Are you finally getting your feet under the table and settling in quite nicely after Harmony?
FERDI DIPPENAAR: It’s been a month, a good month. It’s been a month of learning what’s happened, not just in the company, but with the two projects. But it is also, of course, finding my feet. But it’s all good stuff.
MININGMX: What’s the first project you were mentioning?
FERDI DIPPENAAR: Burnstone.
MININGMX: So where are you exactly in the project. How far along?
FERDI DIPPENAAR: The pre-feasibility was completed in November and it’s really firming up the numbers for a bankable feasibility. It’s an orebody of about 3 million ounces with a recovery grade of about 5g/ton. It’s shallow, from 250m down to 700m. That’s area one of the first phase of the orebody of the mine. It’s a decent cost with a decent margin.
MININGMX: Have you got any ballpark figures on the cost to develop the mine there?
FERDI DIPPENAAR: I’m talking pre-feasibility now, so it’s really early days. It was $92m at a cash cost of about $250–$260 per ounce, which isn’t bad. It is very comparable with anything else at that grade. But I think it’s the fact that it’s a shallow orebody that makes it quite exciting, it’s easy to assess and quick to assess. It’s like building a deep level mine in South Africa: it’s a deep mine which we start assuming to take a decline, probably in about three years time we will have a decent gold sample of the infrastructure in place to start mining somewhere.
MININGMX: Really that quick?
FERDI DIPPENAAR: That quick and that makes a difference.
MININGMX: How will you guys raise that kind of money?
FERDI DIPPENAAR: Well if you break it down in phases, we’ve got some cash in the bank, Canadian dollars. There is really no need to go out there and raise cash or issue a significant number of shares. And then, of course, as we make good progress with our Ivanhoe project which we’ll deliver into production a lot sooner.
MININGMX: What kind of figures are you looking at in terms of capex and production dates, and so on?
FERDI DIPPENAAR: At the moment it’s approximately $55-60m to bring Burnstone into production. The production rate, remember these are pre-feasibility figures, is about 165,000 oz/year. High grade, low cost very, very typical of narrow vein mines.
MININGMX: Is that going to be underground?
FERDI DIPPENAAR: It is underground, yes. There was a surface that has been mined. What we are doing now is putting down a decline. We have two breakaways and we have established sites, we have got drilling machines coming in February to target certain sections of the orebody and additional ore bodies, and try to convert those resources into about a million ounces at the moment.
MININGMX: What is it like being your own boss where you’re the man calling the shots now?
FERDI DIPPENAAR: Well I think in the Harmony environment we were playing in that kind of situation where you were typically accountable for what you looked after. It is different, it’s exciting. It’s what I have been looking forward to doing. As they say, you can always regret what you have done. But if you haven’t done it, what is there to regret? And that’s really what I’m going out to do.
I voted yes as well. Yamana acquisition was best in short term, but NOT best for long term investors...
IMO, most of Yamana price rise is likely attributable to RNC acquisition which is highly accretive. Sure wish they would have exchanged 1.5 shares rather than 1.2 shares, would have been a much fairer exchange...
FWIW, look at the Canaccord Fairness Opinion in Exhibit C. There are NO numbers!!! Just words to the effect on how they valued RNC without any numbers... Have reviewed Fairness Opinions before and my recollection is the others contained numbers to support their opinion.
Central Bank Gold Sales
acutal gold sale tonnes.......151.50
pro-rata gold sales tonnes...182.69
http://www.investorshub.com/boards/read_msg.asp?message_id=8327291
MINEWEB: This media coverage of Mining Indaba 2006 is proudly brought to you by Uranium 1 – the one to watch. Well, Ferdi Dippenaar, I wonder if you’re going to be watching Uranium 1 amongst everything that’s going on at the Indaba this week. How many of these mining indabas have you attended, Ferdi?
FERDI DIPPENAAR: Most of them, Alec, most of them. And of this one, one would say, “Much the same”. I think it’s probably a bit larger than last year. There has been renewed interest with, obviously, the price of gold and the price of uranium.
MINEWEB: Hmm – and what kind of people come together in Cape Town?
FERDI DIPPENAAR: Well, mainly it’s representatives from the mining companies, first of all, and that’s right down from exploration right through to the major producers – and that’s not just in gold uranium, but generally resource companies. And of course what makes it a bit different to the other conferences is the number of reps from government departments – not just South Africa, but throughout Africa, which is a display case or showcase for he rest of Africa in terms of, first of all, governments and their approach to the resources industry, wanting them to come into their markets and invest in their countries, and of course the interaction that takes place.
MINEWEB: Now in the past you were there as a representative of Harmony Gold. Now you’ve got your own company, Great Basin Gold – what will be the difference for you this year?
FERDI DIPPENAAR: Well, Alec, it’s starting all over again, it’s starting small, it’s looking for those projects which would appeal for Great Basin Gold, and of course speaking to people and parties that could make a difference in our future going forward. We have got the Burnstone project in the Evander area, the Balfour area, that we’re looking at taking into definitely feasibility stage by the end of the March quarter. Of course, that’s going to require a bit of input from a lot of people over the next couple of months, and this is the place to meet with them and discuss it with them.
MINEWEB: Ferdi, do you conclude much business at the mining Indaba or is it more contents?
FERDI DIPPENAAR: Not necessarily conclude the business, but the networking and the introduction, that’s probably high on the list. It’s the actual meeting, and then setting up the meetings that follow, the actual conference in the next couple of weeks and the next month or two.
ask Louis, it's tax season for me...
Virtual Metals November & December
http://www.virtualmetals.co.uk/PDF/PMMNov05.pdf
Nov issue has article on Palladium, also found this interesting:
"If you rely on anecdotal evidence, which is often some of the most useful around, then these Middle Eastern retail buyers have provided us with a trading range for the next few months, or at the very least, shown us where the floor is below which we will see strong physical price support.
But the locals shared something else with us - something rumoured in London but as yet neither confirmed nor explained. The very high import figures into India as recently reported are not all demand driven but reflect the extent to which Indian gold
traders are taking advantage of export incentives.
Using letters of credit, they import gold bars (usually kilobars) into India, often from Dubai. They then draw the gold into very crude wire and re-export it back to Dubai describing it for customs purposes as "jewellery". They are therefore simply taking financial advantage of export incentives on finished jewellery shipped out of India. More often than not the "jewellery" is converted back into bars and reshipped into India again.
As with anything of this sort, it is not possible to put a tonnage on the amount of gold tied up in this round tripping but our friends in Dubai say, "it's big"."
_____________________
December Issue:
http://www.virtualmetals.co.uk/PDF/MonthlyDec05.pdf
Interesting observations on Gold ETF on pages 6-7
USA Tax Law Changes for 2005
http://amarks.homestead.com/TaxLawCh.html
January 2006 is my best month ever as well...
My gold stocks up to 63.7% of portfolio now...
gold/silver coins another 6.91%
Oil & Gas= 7.35%
Cash = 15.7%
ANO/ARQ my big winner today.
Central Bank Gold Sales update
http://www.investorshub.com/boards/read_msg.asp?message_id=8327291
doing the math, that's 1.55% of annual gold production went into GLD ETF last week...!!
annual gold production 82,000,000 ounces
ETF last week = 1,273,964
1,273,964
82,000,000
1.554%
Check this out: streetTRACKS Gold Fund (GLD)—the largest ETF traded on the NYSE, and one of several relatively new vehicles for owning gold without taking delivery of physical metal—added an eye-popping 39.62 tons to its trust vaults last week.
That’s 1,273,964 ounces of gold, for those of you who are counting, or a nearly 14% increase in the fund’s holdings. Not since the week of the fund’s inception in November of 2004 has it added so much in a week. And remember, that was at considerably lower prices.
http://www.kitcocasey.com/displayArticle.php?id=515
Lots of disbelief out there that Central Banks could once again start selling their gold. Maybe so, but I believe at some point Central Banks will once again desire to "manage" the POG. It all depends on what POG they want to defend, they certainly have enough gold in their vaults to sell... Also, as long as price of oil is relatively high, we have good gold investment demand from OPEC countries so Central Banks may be hesitant to sell right now since plenty of buyers.
IMO, central banks do want to "manage" POG. It's just a question of when. It could be POG=$700 or $800 or $650 or $1,000, but at some point in time we will get meaningful central bank sales coupled with jawboning of future sales from Germany, France, Belgium, Italy, etc. Until then, watch oil price (over $50/barrel is good) for its likely impact on OPEC country gold demand. OPEC buying substantial gold ounces with their excess oil profits. India gold demand has been very weak for past 3 months, certainly not a positive factor.
I remain very positive on gold and gold stocks for 2006.
just my thoughts and opinion...
FWIW, hold 3.1% in TIPS bought 12 years ago or so... These TIPS mature in about 3 years...
Recent Central Bank Gold sales are indeed interesting...
http://www.investorshub.com/boards/read_msg.asp?message_id=8327291
http://www.investorshub.com/boards/read_msg.asp?message_id=9454664
If France, Dutch, Belgium banks decide to ALL sell in the same week/month their pro-rata allocation, gold price could get whacked... Then we get Germany saying they are "exploring" gold sales once again...
This would be nightmare scenario for the POG longs right now. Not saying or implying this will happen, just saying if the Central Banks want to spook the gold market, this would likely do it... Am now 62% long gold stocks, down from over 90% a few weeks ago...
Any opinion on MUR or EQT vs. ECA
http://www.siliconinvestor.com/readmsg.aspx?msgid=22110617&personmsgnum=2
Central Bank Gold Sales article
LONDON -- European central banks are highly unlikely to sell the
total 2,500 metric tons of gold permitted under the five-year
Central Bank Gold Agreement, HSBC analyst Alan Williamson said
Friday.
Total confirmed and probable sales under the renewed agreement
currently stand at 1,441 tons, of which 599 tons has already taken
place and a further 842 tons are expected to take place over the
balance of the agreement, Williamson said.
"Within this category we have included the 130 tons of Swiss sales,
which completes the longstanding disposal program, the 600 tons of
likely French sales (151 tons already completed) and the Dutch sale
of 165 tons (75 tons already)," Williamson said.
"In addition, we have included likely Portuguese sales of 160 tons
(of which 65 tons has been completed), Austrian sales of 90 tons (of
which 15 tons done already) and probable Swedish sales of 60 tons
(17 tons done)," he added.
Williamson said also included are European Central Bank sales of 47
tons undertaken so far and the 6 tons of gold sold by the Bundesbank
for coin minting.
Also, Belgium has likely sales of 120 tons (of which 30 tons have
been completed), and Spain has sold 63 tons.
"These sales total 1,441 tons, or just over half of the potential
sales under the agreement," Williamson added.
In addition to these sales, there is a potential 876 tons of central
bank disposals that can be identified, Williamson said.
"Within this we would include a further 594 tons of German sales if
the Bundesbank were to take up its full 600 tons allocation -
although it passed on the possibility of sales in the first year of
the revised agreement and has not yet stated its intentions," he
noted.
"In addition, we have included a further 220 tons of possible ECB
sales, which is approximately what would need to be sold to reduce
its holdings to 15% of total reserves, and a possible 62 tons of
Belgian sales," he said.
But even in the "unlikely event" all these sales materialize,
Williamson said total sales under the renewed Central Bank Gold
Agreement would be just over 2,300 tons, still almost 200 tons short
of the maximum permissible.
"Unless another central bank emerges as a seller, we remain of the
view that the full 2,500 tons quota will not be filled. Indeed, in
the event that either the Bundesbank and/or the ECB decide not to
undertake any further sales, aggregate sales will fall short of the
2,500 tons maximum," he added.
The five-year agreement is the second of its kind and limits
combined annual sales of gold by individual countries to a total 500
tons. Each Central Bank gold agreement year runs from the end of
September.
ARQ pages 4-6
http://www.haywood.com/pdffiles/Xjan112006.pdf
Here's a first-NO CENTRAL BANK SALES this week...
http://www.investorshub.com/boards/read_msg.asp?message_id=8327291
Central Banks now a bit behind "planned" sales to meet 500 stated tonne goal as of 01/20/06
147.93 actual tonnes sold YTD
163.46 expected tonnes to be sold YTD
Tends to confirm Simmons Twilight in the Desert...
FWIW, I sold all my AGI shares today..., only have AGI shares now in my daughters education account, $2000 at US$.51 per share will almost pay for 1st year of college...
ok, thanks.
bought some ECA
Martin M updated gold forecast
Martin Murenbeeld
M Murenbeeld & Associates, Inc., Vancouver
GOLD
Range: $495 - $625
Average: $561
Our studies indicate that gold supply is inexorably falling behind demand as a diminishing number of new reserves fail to compensate for dying mines. This has been happening for some time but, until now, the effect has been masked by official sector sales and producer hedging. However, official sector sales will likely dry up in the future, and they could become net buyers of gold. This transition, together with an expected increase in investment demand, jewellery consumption and a diminishing mine supply, will cause the supply-demand imbalance to heat up the gold price. We believe this has already begun.
We think the year 2006 will be exceptionally difficult to get "correct", owing to our outlook for increased economic and financial volatility in the world economy.
Our baseline is that the US$ will tumble in 2006, possibly quite sharply. US interest rates will stop rising, possibly even be cut, while Asian and European interest rates will likely rise somewhat. China is likely to revalue the RMB. US debt levels will continue to rise, and if house prices flatten or decline, the Fed may have to lower interest rates quickly in order to forestall a potential recession. The US current account deficit will worsen, which will continue to undermine confidence in the long-run health of the dollar. Increased focus on all governments' retirement-related financial obligations will likely add to general concerns that monetary reflation can not be far off - which should benefit bullion greatly. Growing demand in Asia for commodities generally, and gold specifically, both from the public (and quite possibly now also, finally, central banks) will add to gold price buoyancy. Investment demand around the world will continue to grow as well. The "war on terrorism", while mostly in the background, could suddenly add to gold's appeal. Oil is a wild card, but we expect more oil revenues to find their way into gold bullion.
Set against this demand-friendly environment is a rather restricted gold supply profile; mine output is unlikely to rise significantly and CBGA signatories are limited in how much gold they can sell. (Over time CBGA sales may well be taken up by Asian central bank purchases - we'll see - which will add significantly to the bullish environment.) Our major concern is that our baseline outlook proves to be too pessimistic, and that our first alternative outlook - average $613 for 2006 - will prove to be more accurate.
http://www.lbma.org.uk/publications/forecast%202006/forecast2006_gold.htm
Went from about a 80% gold stock allocation to a 40% gold stock allocation today. Sitting on a bunch of cash.
Any opinion on an energy stock (oil, uranium) that looks good here Frank? Something I can hold for next 4 months in a safe country please!, too busy with tax season to monitor the market much, so need to hold for next 4 months or so. Or should I just keep it in cash...
Thanks.
still holding that BNK stock pick of the week... any change of opinion...?
Central Bank Gold Sales
01/13/06...163,797...€ 7,000,000...16,055.0...0.50...147.93...153.85...1 bank sold
Now slightly behind pro-rata 500 tonne sales plan:
147.93 actual tonnes sold vs. 153.85 pro-rata sales
here is best way to follow nickel & copper prices and supply...
http://www.investorshub.com/boards/board.asp?board_id=2762
bought some DY, like what I see fundamentally...
DY took a big hit on Nov 28 when Implats withdrew from Ambatovy project.
DY share ownership in FNX (20.5M shares) is worth $297,250,000.
Thus, FNX shares support C$.97 of DY current C$1.34 share price=72%
Get DY's other projects, including Ambatovy, for C$.37. That's a deal...
Jim Rogers Speaks Out on Oil & Gas
By Jon A. Nones
16 Jan 2006 at 05:22 PM EST
ASPEN (ResourceInvestor.com) -- Famed Wall Street legend Jim Rogers told institutional investors at the International Oil & Gas Investor Forum in Aspen, Colorado, to move toward commodities – and fast.
“If you’re good at buying stocks, do so, otherwise you’re better off investing in commodities,” said Rogers.
In a presentation that went around the world, Rogers examined the U.S. currency, stocks, bonds and, of course, Asia to explain his viewpoint. Overall, he said commodities are in a bull market and oil & gas could be investors best bet.
Picking up where Frank Holmes of U.S. Global Investors, Inc. left off in the morning, Rogers wasted no time in hitting upon China and its soaring economy, telling listeners to “teach your kids Chinese.” He painted a picture of insatiable demand for commodities in the country, fueled by an enormous population, thriving economy and a will to succeed.
“China is the next great country of the world, like it or not,” he began.
According to Rogers, China has the best capitalist market in the world right now. Asians are willing to work as hard as they have to in order to become as prosperous as those in the West. They don’t ask how many sick days they will get, or what holidays they will have off; instead they ask when they can work, Rogers said. And they work for far less than we do.
“Most Chinese don’t have electricity, they’re going to get electricity,” said Rogers, adding that the power will obviously have to come from energy sources like oil & gas.
Rogers next tackled the topic of the U.S. dollar and where it’s headed – a popular topic with analysts these days.
“It is now a terribly flawed currency,” he said.
The U.S. now owes the rest of the world $8 trillion, and adds on average $1 trillion every 15 months, according to Rogers. The total U.S. debt remains at about $43 trillion.
Future Federal Reserve Bank Chairman Ben Bernanke, as most of us have already heard, has said that the Fed controls the printing presses and will run them as much as needed to keep the economy going. And, as most of us already know, this quick fix has serious long-term repercussions, mainly mass inflation.
Even Asian banks – the five largest investors in U.S. bonds – are becoming concerned, Rogers added.
So with this said, where should investors put their money? You guessed it: commodities.
“You have to find a way to make money from it,” Rogers urged.
He listed the three possible avenues investors can take.
Bonds
Stocks
Commodities
Rogers plainly said the bond market is “not a place for your money.” A meager 4% gain per year is not going to do it, he said.
Rogers said that stocks would continue to fluctuate in the market, and for the most part, investors would not get the gains they seek.
But commodities…
“Most people in the world don’t know that you can buy and sell commodities,” Rogers explained.
He said when people do catch on, this could launch the bull market for many years. Rogers added that in his experience, the shortest bull market in commodities lasted 15 years, while the longest lasted 23 years.
“It takes a long time for bull markets to come on stream and a long time for people to take advantage,” he said. And Rogers said the oil & gas sector could be just the place to take advantage.
According to Rogers, all the great oil discoveries were made over 30 years ago. Reservoirs in Alaska, Mexico and the North Sea are in decline, he said. Not to mention, nobody really knows how much oil Saudi Arabia really has.
“Since 1988, Saudi Arabia has said it has 260 billion barrels of oil – that’s 18 years of the same number!” Rogers said.
He added that the U.K. has been an importer of oil for years, and China has recently gone from an exporter to an importer. Although Russia has huge amounts of reserves, it hasn’t put forth the work to get wells online, Rogers said.
“When supply goes down and demand goes up, that’s a bull market,” he frankly put. “Unless someone discovers a substantial amount of oil soon, the price is going to keep going up.”
Aside from oil & gas, Rogers did add that agricultural commodities could prove very valuable as well. He said sugar, wheat and soy haven’t moved nearly as fast as the metals and are far from all-time highs.
“By 2018, everyone is going to be investing in commodities and everybody is going to be screaming that commodities are going to go up forever,” Rogers concluded
Forget about gold, uranium, & energy stocks...
Invest in chocolate...!
http://www.barry-callebaut.com/Main/Frameset.asp?reference=01%2D01&lang=en&sess=54067818&...
Hello Louis, am going back to school to learn something useful...!!
https://contsturegister.smu.edu/wconnect/wc.dll?acecode%7ECourseStatus%7EM053FOOD105
___________________
M063FOOD105 From Eating to Drinking Chocolate: A Tasting 02/09/06 02/09/06 Thursday from 7:00 PM to 9:00 PM, 1 Session 29.00
From Eating to Drinking Chocolate: A Tasting
Every chocolate lover must savor, at least once, the exquisite experience of drinking chocolate! Made from dark chocolate, drinking chocolate is rich and delicious. Come see how it differs from drinking cocoa - and you won't believe your taste buds! Drinking chocolate is a hot, chocolate beverage that is thicker in consistency than hot cocoa and made from more than 50% chocolate solids. Taught by the owners of The Cultured Cup, this class offers wonderful tastings of the world's most sumptuous drinking chocolates, a history of drinking chocolate, and tales of the Callebaut Chocolate Company in Belgium!
There are still openings remaining at this time.
Faber
Dr Doom upbeat on properties and commodities
Marc Faber, who told investors to bail out of US stocks a week before the 1987 Black Monday crash and began recommending commodities at the end of 2001, forecasts property prices in Asia will rise.
Thursday, January 12, 2006
Marc Faber, who told investors to bail out of US stocks a week before the 1987 Black Monday crash and began recommending commodities at the end of 2001, forecasts property prices in Asia will rise.
Faber, author of a monthly newsletter called The Gloom, Boom & Doom Report, said that migration of people will boost the value of land and homes in cities.
"When you look at asset classes, given the demographics in Asia and urbanization in the long run, I'm quite sure property prices will rise," said Faber, the founder of Hong Kong- based Marc Faber, which manages about US$150 million (HK$1.1 billion).
The Bloomberg Asia Pacific Real Estate Index, which includes stocks of homebuilders from Japan to Singapore, rose 26 percent in 2005. That compared with a 35 percent gain in the Bloomberg US Real Estate Index.
In the United States, some investors and analysts are concerned a decline in housing prices might lead to a collapse in the stock market. Chief equity strategist Barry James of Xenia, Ohio-based James Investment Research forecast that major equity indexes will plunge up to 20 percent in the following 12 months as home prices decline and erode the wealth of homeowners.
Faber is also focusing on Asian stock markets and on commodity- related stocks that are likely to rise on demand for materials and energy from China, which is building up Beijing for the 2008 Summer Olympics.
"The stocks I recommend usually I also take a position in, whether it's long or short," said Faber. "There is a speculative element to everything in the present time. We live in a world of inflated assets."
Companies in Thailand that provided a high dividend yield, or the ratio of dividend payout for the most-recent 12 months to the current stock price, included Thai Reinsurance and Thai Union Frozen Products. Thai Reinsurance had a 7 percent yield as of January 6 and Thai Union Frozen Products yielded 4.7 percent. Both companies are based in Bangkok. "I happen to like to buy high-dividend- yielding stocks," Faber said. "There are not many left."
Gold has risen 97 percent to US$545.47 an ounce and crude oil futures in New York more than tripled since the end of 2001, when Faber began recommending investment in commodities. By comparison, the S&P Index rose 12 percent.
US stocks are overvalued, Faber said, while prices for gold and oil are set to jump due to soaring demand for these commodities in China and India. "I'm not saying that everything I've done in my life was right - quite on the contrary," Faber said.
He remained bearish following the 1987 crash as investors raked in winnings. "Having said that, I think there were frequent opportunities outside the United States," he said.
Faber has worked in Asia for more than 30 years.
He makes his prognostications on investments based partly on his view of economic cycles.
Dramatic commodity bull markets all originated after extended bear markets, Faber said. Gold prices soared more than 20-fold and oil rose eightfold from 1970 to 1980, a decade followed by a more-than-20-year bear market. In the current bull run, major indexes such as the Reuters/Jefferies CRB Futures Price Index may be driven higher by commodities such as grains that have not risen, he said.
"I would argue the CRB index will outperform the Dow over the next 10 years," said Faber, who sits on the advisory board of Credit Suisse Asset Management.
The CRB index rose to a record 340.65 on January 6. The index, which tracks 19 commodities including gold, oil and sugar, gained 17 percent last year.
Commodity investments may increase by 38 percent this year to US$110 billion as pension funds and other money managers diversify from stocks and bonds, according to London- based Barclays Capital.
"There's a better understanding among investors that by having exposure to commodities they can offset losses of other assets in their portfolios," Kevin Norrish, a director of commodities research for Barclays Capital, said. Fund managers are still "underexposed" to commodities, he said.
The amount of money in funds tracking commodity indexes increased last year by between US$25 billion and US$30 billion to as much as US$80 billion, Barclays Capital said. BLOOMBERG