Tuesday, February 2, 2010

Marc Faber: Keep Gold in Your Portfolio

Marc Faber says keep gold in your portfolio

Marc Faber and others, in spite of a temporary surge in the value of the U.S. dollar, which put some downward pressure on gold in January 2010, still believe gold should be a part of everyone's investment portfolio.

Faber, while well-known for a number of things, recently grabbed the attention of the financial media by stating gold prices wouldn't drop below the $1,000 an ounce mark ever again.

There is no doubt the printing of money from central banks around the world is generating inflation, and it will increase going forward. That alone is a good enough reason to have gold in your investment portfolio.

Safety is another key factor, and many economists and experts are saying the rosy picture being presented by mainstream financial media is an illusion, and even the recent GDP figures are largely inflated and irrelevant because of one-off events; specifically the replenishing of inventory, which would have otherwise had us experience anemic growth of 2.2 percent.

The second half of 2010 is expected to slow down even more, suggesting gold has a good long-term upward climb before it ever settles down.

Significant corrections in gold prices should be viewed as buying opportunities and not a reason to sell.

Marc Faber says keep gold in your portfolio

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