Marc Faber : Gold is not the ultimate Ponzi Scheme

Forget US Stocks - Buy Gold Every Month Forever : Marc Faber told CNBC 04 Mar 2010

“(Gold's) quantity cannot increase at the same rate as you can print money, which will eventually weaken the US dollar,” Marc Faber told CNBC in a live interview

"I’m not saying that the dollar will go straight away down because other currencies like the euro are even worse at the present time," Faber Explained. "But eventually if you print money, the purchasing power will lose ."


“Other counties like Spain and Portugal will also have to be bailed out eventually, and it will lead to more monetization in Europe, one of the reasons why the euro has been so weak,”

“The pain of the austerity will be very burdensome on Greece," he added. "And eventually the economy can’t grow with the kind of budget they will have to enact and under these conditions, their currency is way overvalued.”

“If you compare the Depression years, we didn’t have credit cards and we didn’t have unfunded liabilities from Social Security, Medicare, and Medicade,” Marc Faber added. “In other words, in 10 years time, between 30 to 50 percent of tax revenues will be spent on interest payments on the government debt...and that will lead to a weak dollar.”

Dr Marc Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude.
Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong.
Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, MARC FABER LIMITED which acts as an investment advisor and fund manager.
Dr Faber publishes a widely read monthly investment newsletter "The Gloom Boom & Doom Report" report which highlights unusual investment opportunities, and is the author of several books including “ TOMORROW'S GOLD – Asia's Age of Discovery” which was first published in 2002 and highlights future investment opportunities around the world. “ TOMORROW'S GOLD ” was for several weeks on Amazon's best seller list and is being translated into Japanese, Chinese, Korean, Thai and German. Dr. Faber is also a regular contributor to several leading financial publications around the world.
Dr. Marc Faber also known as Dr Doom is an investment adviser, investment analyst and fund manager author and publisher of the Gloom Boom & Doom Report ,and the author of "Tomorrows Gold" . Dr Faber is known for his contrarian investment approach. Dr Marc Faber is associated with a variety of funds and is a member of the Board of Directors of numerous companies.
In 1987 he warned his clients to cash out before Black Monday on Wall Street. He made them handsome profits by forecasting the burst in the Japanese Bubble in 1990. He correctly predicted the collapse in US gaming stocks in 1993; and he foresaw the Asia-Pacific financial crisis of 1997/98 and the resulting global volatility. Dr Doom motto is "Follow the course opposite to custom and you will almost be right"
Mr. Faber is also the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery, and is a director of Ivanhoe Mines Ltd. , a mining firm focused on the Asia Pacific region. He is also an adviser to a number of private investment funds.