Marc Faber: ‘Gold Has 30% Upside Potential This Year’

Posted by: : Paul EbelingPosted on: January 22, 2015 Marc Faber: 'Gold Has 30% Upside Potential This Year'
 

Marc Faber: ‘Gold Has 30% Upside Potential This Year’

Investor Marc Faber is not too impressed with the easing programs of central banks around the world, and he says the best way to bet against those programs is by buying Gold.

“I think people will wake up finally and say, if they can short central banks, that is the trade of the century,” he said in a TV interview. “The central banks will be exposed for all the fraud they commit.”

The European Central Bank announced its QE program Thursday, and the US Federal Reserve is not expected to begin raising interest rates anytime soon.

But central banks can also surprise the markets, as the Swiss National Bank (SNB) did last week when it dropped the Swiss franc peg to the Euro.

“You never know — that’s the problem with central banks,” Mr. Faber notes. “They are professors who never worked a day in their lives.”

The Bog Q: What is an investor to do?

The Big A: Buy Gold, Mr. Faber insists. “My view is that when confidence in central banks finally collapses, then Gold has a 30% upside potential, easily, this year.”

Gold at trading at 1,299.40 Friday morning.

Mr. Faber recommends junior Gold miner stocks. Junior miners are exploration companies that look for new deposits. Those are “the only stocks that have a great upside potential from here,” he argues.

The SNB’s decision last week to abandon its ceiling for the franc sent investors to safe-haven Gold. The SNB’s move pushed Euro to an 11-yr low Vs the USD, and that may make Gold very attractive to Europeans.

If you are a European investor with assets, and you are  seeing your core currency getting rapidly debased, you are  going to want to diversify, and some of that is going to go into Gold.

HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Bullish (0.45) Bullish (0.38) Very Bullish (0.50) Bullish (0.47)

Stay tuned…

HeffX-LTN

Paul Ebeling

 

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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