LONDON (Commodity Online): Global investment analyst Marc Faber says the best and true currencies available in the world today are not US dollar or Pound, but precious metals such as gold, silver, platinum and palladium.Faber, who is famous for his prediction of the US stock market crash in 1987, said that commodities, especially gold and silver will be the wise investment options for people in the wake of rising inflation and troubled economies around the world.
Faber, who is the publisher and editor of Gloom, Boom & Doom Report, said that if there is a war, gold and silver would be desirable investments to hold.
Faber recommends investors to accumulate gold in response to money supply inflation policies of the U.S. Federal Reserve—policies that have contributed to rapidly escalating commodities prices since the introduction of these unprecedented monetary measures in March 2009.
In his discussion with Prison Planet radio host Alex Jones, Faber said he anticipates the Fed to announce further “quantitative easing” initiatives before the expiration of the Fed’s latest “QE” initiative, QE2, which expires in June.
Faber argues that the gold price is signaling to the market that the U.S. dollar is “no longer a credible unit of account” due to the Fed’s QE plan of purchasing mortgage-backed securities and surplus U.S. government debt not absorbed by the market.
The European Commission has embarked on similar policies to the U.S. Fed regarding the euro—the world’s second-largest reserve currency—and similarly cannot be trusted to maintain the purchasing power of its currency either, Faber believes.
Faber said that the only true currencies that exist today are gold, silver, platinum, and palladium......read on
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