Dr Marc Faber is one of our favourite pundits to keep an eye on. He's responsible for the DoomGloomBoom report which most probably publishes the best insights into the Asian markets, as well as the Global investment arena.
He also publishes a free monthly comment and it's always an interesting read. This month he's arguing -
The US Fed has no other option that to print money
It will NOT allow US assets to decline
The purchasing power of the US Dollar has been shredded by 92% over the last 100 years!
The Gold/Dow ratio will at sometime in the future go to 1:1, ie one ounce of Gold will at sometime be able to buy 1 Dow Jones
The ratio is now around 25:1, ie it takes 25 ounces of gold to buy 1 Dow Jones (see chart below)
So if mega inflation hits the US and the Dow goes to 25,000, 40,000 or even 100,000 then that's where gold is also heading!
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