[VIDEO] Marc Faber: "Emerging Economies Will Submerge Soon; Devaluations & Higher Gold Demand To Follow"

TD: Marc, the narrative on natural resources involves Asian demand. You live in Asia. So what’s happening on the ground there and can we rely on continued growth in the region?

Marc Faber : Well, that’s a very good question because we have an economic slowdown in emerging economies that is very pronounced and I think some emerging economies may be submerging soon, and have actually significant economic problems. Then the question arises, “Will they continue to buy gold?” Say if there was a recession in China, in the downturn, would people buy gold?

I think if the Chinese economy imploded, it is likely that the currency would begin to weaken, the yuan. Or the government would implement even a devaluation of the yuan. It could be the case. If that were the case, then I think that Chinese individual investors would rather shift some of their money into gold which they can buy in China nowadays than keep their funds in the local currency. So I think that’s actually a trouble in Asia and also geopolitical problems in Asia and in other regions of the world may actually lead to rather higher gold demand than lower gold demand.

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.