Listening to Ron Paul and talk radio ads you'd think gold was the last holdout about a soon-to-burst financial bubble. Not so fast, says a prominent analyst.
Marc Faber, author the Gloom Boom & Doom newsletter, says the precious metal might not be such a good buy. The Federal Reserve's "money-printing" policies, such as quantitative easy, are rapidly devaluing all forms of currency, Faber suggests.
"When you print money, the money does not flow evenly into the economic system," Faber said on Bloomberg Television, according to Business Insider. "It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker."
Faber added, "So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide."
Gold investors had the opportunity to do phenomenally well in recent years and the U.S. and world economies sagged. But gold has been in a slump lately. Gold prices slipped below $1,600 an ounce level on Thursday as demand for safe-haven bets receded after the banks in Cyprus reopened amid relative calmness, driving out fears of widespread bank runs. Silver prices, too, fell sharply on Thursday.
Via Business Insider, and Politix.