Faber
'Gold price increase because central banks printing money' - Dr Marc Faber
In an interview on ClassicFM @ 18:20 on Friday, 23 September 2005
[miningmx.com] -- Swiss-born Hong Kong-based economics expert Dr Marc Faber is in South Africa, having recently addressed an investment conference in Cape Town. The author of the Gloom, Doom and Boom Report - and author of bestselling book Tomorrow’s Gold, Dr Faber was interviewed by Classic Business Day, a week-nightly business programme broadcast on ClassicFM. Here is an overview of Dr Faber's opinions on a number of commodity-related issues:
Commodity cycles:
"Basically commodity cycles last a long time - 45 to 60 years. They are price cycles, and not business cycles
"We are in the process of completing the first leg of this bull market that can be followed by a meaningful correction. I wouldn’t be surprised to see oil down to $40 to $45 dollars, and copper down 30%," Faber said.
Outlook for commodities:
"The long-term outlook for commodities is favourable. I think that investors have to be positioned with the view that commodity prices will rise over the next 10 to 20-years," Faber said.
Precious metals and currencies:
"Precious metals like gold, silver and platinum are in many cases not really just precious metals, but also currencies. I would say in the world today we have a few large currencies - the US dollar, the euro, the yen and the Chinese yuan - and these are paper currencies where incompetent central bankers can increase the supply limitlessly. On the other hand gold has a very definite and finite supply - of around 2,500 tons per annum.
On the gold price:
"I think that the gold price increase since 2001 is reflecting the reality that central bankers are printing money - and I would imagine that gold prices in your and my lifetimes, since we’re so young, will be much higher than what it is now, expressed in US dollar terms," Faber said. He was speaking on ClassicFM on Friday evening.
