Marc Faber : Gold Shares are The Best performing Sector In The U.S.

What do you think about the condition of the market?

Marc Faber : The market has altered downwards and we are in a purchasing range. It does not matter even if India develops at 5% or 7% per annum but if think about the coming 10 years, you could simply anticipate an economy that grows all over on an average between 4 and 7% per annum, which is very a high growth rate.

I assume that earnings ultimately track the “GDP growth”. Presently, the estimations in India are satisfactory. But I have one thing to add. Just couple of years back, indexing has gained the tag of “new trend” around the world. Ample amount of money is been invested in a submissive way in ETFs—who are interested in buying index.

If we consider 2016, a huge difference can be seen in the achievements of distinct sectors in the United States—the gold shares being the best performing sector. Apart from it, energy sector performed best while biotechnology performed the worst. The world is again shifting toward “stock pickers’ era” wherein people give their best performance provided they are in the appropriate sector.

 source : Marc Faber

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.

Gold Shares are Outperforming most Sectors

After years of stagnation, gold shares are outperforming most sectors, as their relative value encourages wise investors to allocate funds into the XAU. Dr. Faber recently added to his gold position, using weakness as an opportunity to procure sound money at a discount. The storage cost for physical gold bullion is low making the yellow metal an ideal asset to outperform other commodities amid a 2016 rebound rally.

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.

Gold Shares now are at a very low level

TD: Right, over the last three years. But when you look at the fundamentals today as compared to 2011, how would you describe the difference?

Marc Faber : Well basically, we had a huge run-up in prices between 1999, from $255 oz. to $1921 oz., in early September 2011. We’ve been in a correction period.
Now, I think the correction period was partly justified because there was too much enthusiasm and too much speculation leading to the peak in September 2011. But I think that there may have been some market manipulation as well, could be. My sense is that the correction has probably come to an end, because if anything, the fundamentals are much better today than they were at that time, but the price is down.
I always tell investors, that every investor understands the principle “buy low and sell high,” but when prices are low, nobody wants to buy. We had very negative sentiment recently. I’m not so sure about asset markets, because we could one day, after this colossal asset inflation of the last 20, 30 years, also have asset deflation.
But when I compare say gold shares and the price of gold to the S&P, the S&P is up substantially since 2011 and gold is down substantially. So if you compare say the performance of gold shares to the S&P, I think it has been a disaster for gold shares.
When I look around at asset prices; real estate, bonds, equities, paintings, collectibles, vintage cars, I think the price of gold is actually one of the few assets that are relatively cheap, relatively inexpensive. In particular, as my friend Eric Sprott always says, “Gold shares now are at a very low level.”    - in bullmarketthinking Click here to watch the full interview

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.

Gold Shares are very inexpensive

"I'd rather buy something that is reasonably priced. And, I think gold shares are very inexpensive. So a basket of gold shares I think next year could easily appreciate 30%." - in CNBC


Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

In 2014 Gold Stocks could go up 30 percent

Marc Faber

Given all the money printing that is going on globally . . . and given that the total credit as a percentage of the advanced economies is now 30% higher than in Year 2007 before the crisis hit, I think Gold is good insurance.
I think Gold shares are very inexpensive. So a basket of Gold shares I think next year could easily appreciate 30 percent.


Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Gold Shares are a Trading Opportunity because they are so Oversold

 Marc Faber : All I want to say, I would hold physical gold. Preferably probably in Singapore, Hong Kong or other Asian countries. And gold shares are a trading opportunity because they’re so oversold and along with the performance of gold prices they should re-bounce quite strongly. - in GoldSwitzerland

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.