Marc Faber: Precious Metals the Only Currency in the World That Will Appreciate (Video)

Dr. Doom says there is only one currency that will appreciate over time – precious metals.

Marc Faber recently appeared on RT’s Sophie Co. to talk about the world economy and what lies ahead. Currencies became a major focus of the discussion, with Faber arguing cash has historically been a bad investment because all paper currencies eventually lose their purchasing power:

My sense is that there is only one currency in the world that will appreciate and these are precious metals – gold, silver, platinum.”

Faber went on to say even the mighty US dollar will eventually fall:

In general, I don’t think that cash will be a very good investment in the sense that you have no interest at the present time, you have risks with the banks because banks can fail, and you have also a higher risk of expropriation…If you go back to say 1900, the major foreign exchange reserve currency was the British pound. Today it is a side-show. So I think over time, the US dollar will lose its importance.”

As far as the US economy goes, Faber compared it to Botox. “You create something on the surface that looks quite OK, but behind the scenes it is not so OK.” In Faber’s view, the US never recovered from the 2008 recession, primarily because of central bank intervention.

Highlights from the interview:

“If you look at [Hillary Clinton’s] period which she was secretary of state, the US committed several aggressions in the Middle East, including the invasion of Libya – Libya which was probably the only properly functioning African economy. So I would say that her achievements with nation-building have been a catastrophe.”

“Bill Clinton will revitalize corruption in America. The Clinton family is involved in so many scandals. That is what is going to happen.”

“My favorite candidate in terms of intellect – unfortunately he has misguided views about the economy –  but in terms of intellect is actually Bernie Sanders. He is actually quite an intelligent man, who in 2003 attacked the US Federal Reserve, at that time Mr. Greenspan, that his monetary policies had created wealth for Wall Street and people who own assets, but had done very little for ordinary people in the United States. This has now proven to be correct.”

“The economy in America is like Botox…You create something on the surface that looks quite OK, but behind the scenes it is not so OK.”

“If you really analyze the figures, including the figures that come out about the budget deficit, in other words the fiscal stimulus, they all look horrible.”

“The government debt in the US since Obama became president eight years ago has gone from $8 trillion to $19 trillion. These are the facts.”

“There will be a museum in the future of great central banking errors. One of them will be to have introduced negative interest rates…and the other one, prominently displayed at the entrance of the new museum of central banking policy mistakes, will be a bust of Ms. Yellen.”

“Ms. Yellen – she waited precisely until December 2015 when it was obvious the economy…was deaccelerating very badly and most likely entering into recession. So in other words, she is increasing rates exactly at the time when you shouldn’t be increasing the rates.”

“My sense is that they’re not going to move the Fed fund rate higher. But if they move the Fed fund a bit higher, say by a quarter of a percent, they’re not going to move again any time soon. In other words, if you expect the Fed fund rate to go up substantially, you’ll likely be wrong.”

“We never really came out of the 2007-2008 recession. We had massive fiscal stimulus. We had massive monetary stimulus. In other words, if you just throw money at the system, spending goes up. But there are still huge imbalances, and in my view, the world is facing very, very low growth going forward.”

“My sense is that there is only one currency in the world that will appreciate and these are precious metals – gold, silver, platinum.”

Faber hits on one of the many reason you should consider buying gold. Download SchiffGold’s Free White Paper: Why Buy Gold Now?

“Historically cash has been a bad investment, and all paper monies have lost their purchasing power.”

“In general, I don’t think that cash will be a very good investment in the sense that you have no interest at the present time, you have risks with the banks because banks can fail, and you have also a higher risk of expropriation.”

“If you go back to say 1900, the major foreign exchange reserve currency was the British pound. Today it is a side-show. So I think over time, the US dollar will lose its importance.”

“I’m in support of dismantling the whole EU.”

“The worst policy is essentially zero interest rates, because at zero interest rates, governments can borrow money without any cost for a while.”

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