Faber tells us to own Gold

Faber tells us to own Gold

Thanks to the U.K.’s vote to leave the European Union Gold’s investment case has been strengthened according to Marc Faber, publisher of the Gloom, Boom & Doom Report.

Holdings in bullion-backed exchange-traded products have increased to the highest level since September 2013 as banks including Goldman Sachs Group Inc. who have raised their price forecasts.

Faber said “If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” “And in that situation, you want to own some gold.”

Gold has advanced 25 percent this year as the European Central Bank and Bank of Japan take on negative rates to kick start growth and the Fed pauses after its first raise since 2006 last December.

However, not every one is so optimistic. Big shot investor Jim Rogers said this week that he’d prefer to seek haven in the dollar than gold, given that bullion had already rallied in 2016 before the referendum. Credit Suisse Group AG has said it’s staying neutral on gold over the next three to six months.

Faber believes that this has nothing at all to do with Brexit,

“Brexit is actually not about an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers.” — Marc Faber