Saturday, July 30, 2016

Marc Faber Tells Advisers to Invest 25% Of Investment Portfolios In Gold Bullion

The author of the Gloom, Boom & Doom Report, urged investment professionals at the CFA Institute Conference in Chicago that 25 percent of a portfolio should be allocated to gold given the very significant risks facing investors today.

The Chicago Tribune reports that Faber advised that gold is a “protection from a dangerous combination of tremendous government debt and massive bond-buying by central banks globally trying to fight off recession with near-zero interest rates.”

Faber said rates are so low that investors can’t make money in bonds so they keep buying stocks even though the prices are very inflated. Central banks want rising stock prices to make people feel wealthy and therefore spend their money, but the end result is income inequality and investor resentment, he said.

“Faber told the investment professionals gathered in Chicago that they shouldn’t be prejudiced against gold. Although the typical investment pro keeps less than 1 percent of his or her portfolio in gold, Faber suggests 25 percent. He sees it as protection from a dangerous combination of tremendous government debt and massive bond-buying by central banks globally trying to fight off recession with near-zero interest rates. Besides gold, Faber has invested in Asian real estate and some stocks and bonds.”

“It’s ludicrous to think that slashing rates will get people to spend.” When rates are low, he says, you feel insecure as savings earn nothing. So, “you save more” according to the Chicago Tribune.

Faber told us in a webinar in 2014 how he will “never sell his gold”, he buys “more every month” and he believes owning gold in vaults in Singapore “is safest.”


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Wednesday, July 27, 2016

This May Be The Best Commodity Play of the Decade - CEO


The commodity space couldn’t be livelier, thinks one executive in both the gold and uranium sectors. Amir Adnani, CEO of Uranium Energy Corp., says commodity investors may be in the midst of the best opportunity in more than a decade in the resource space, especially when you look at the fundamentals of the uranium market. “We’re in a full bear market,” he told Kitco News at this year’s Freedom Fest. 

However, given that demand is rising and supply continues to contract, prices may be moving much higher. “Yes, the velocity of recovery has been disappointing but it’s heading in the right direction and that overhang will clear, and when it does, we’re going to see a market that can move very quickly.” Although Adnani, also founder of gold company Brazil Resources, doesn’t think gold is in a bull market like most investors do, he says it is coming. “I don’t think this is a bull market at all, I think this is a market that is recovering,” he said. 

For Adnani, the uncertainty surrounding markets and geopolitical events like the Brexit are helping build the case for gold. “Brexit in a way brought to the forefront what gold can do in all of our portfolios as insurance,” he said. “I think it was the ultimate reminder to investors about the role gold plays as insurance, alternative currency, as a store of value, and wealth preservation and creation.”


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