 "Faber backs gold, says govt bonds 'useless' for investment")
Investment guru Marc Faber and the author of the Gloom Boom, and Doom Reporin an exclusive interview with CNBC-TV 18 said that given the current environment, commodities like gold and silver will soon be percieved as cash and will move into stronger hands, where as US government bonds are now completely useless for an investor.
“We overshot on the upside when we went over $1,900,” said the fund manager, who has 25 percent of his portfolio in gold.
“We’re now close to bottoming at$1,500, and if that doesn’t hold it could bottom to between $ 1,100-1,200.”
US gold suffered its biggest daily drop in more than five years on Friday, but Faber said he won’t be surprised if he sees a 40 percent correction in the near term.
He added that the global environemnt today is very similar to that of 2008 when financing for companies had dried up, global equity had shrunk, and asset prices collapsed. “Industrial commodies are vulnerable and still remain vulnerable,” said Faber.
Today, he said, government bonds are completely unattractive and investors in Asia should still focus on equities.
Watch video: Gold could fall to $1,100, says Marc Faber
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