LONDON (Commodity Online):
Marc Faber who publishes the widely-read monthly investment newsletter The Gloom Boom & Doom Report says that any fall in the prices of precious metals should not frighten people, and it is the right opportunity for investors to accumulate gold if its price dips further.
In an interview to Fox Business Network, Faber said that what is happening in the Middle East is friendly for gold, friendly for oil, and other commodities.
"The mess in the Middle East will only increase over time, nothing has been solved; in Libya we have a civil war, it is not necessarily about democracy..... All these things are indicating, including the earthquake in Japan, that central banks will continue to pursue expansionary monetary policy to keep interest rates artificially low and that boosts equities and commodities,” Faber stated.
Dwelling deep on the impact of Japanese earthquake and tsunami on the global economy, Faber said: "The key to the performance of Japanese shares is that the Japanese bond market becomes unattractive and that the Yen over time weakens".
"I think as a result of the reconstruction work that may cost up to US$300 billion, that obviously the government will need to monetize, and Japanese bonds in the long-term will become terribly unattractive, and that will push money into equities."
"So, I think Japanese shares are worthwhile to accumulate.”
On where precious metals are heading, Faber said that they are not acting all that well and he doesn't expect new highs for now.
"We live in very volatile times; a correction could be 10%, 20%. I would on any weakness accumulate gold. The long-term outlook for gold is favorable," Faber commented.
Marc Faber, who is a Swiss fund manager, said that a correction in assets prices has begun but the long-term outlook for gold remains favorable and recommends accumulating the precious metal on any weakness.
