The price of gold rose earlier this week to the highest level since October to a little over 1239 USD per ounce. According to Marc Faber, better known as Dr. Doom., the gold price could even go up by 30 percent. A gold rally, in other words, and this year!
The bearish-by-nature investor stated that the gold price will rise in 2015 during a strategy presentation of Société Générale. He believes that trust of investors in central banks will collapse and if he could, he would go short on central banks. The only way to play this trend is to invest in precious metals.
Gold Is A Bargain
The price of gold has gone down sharply after the all-time high of 1900 dollars in September of 2011. The precious metal has been one of the worst performing assets of the last couple of years now. In 2014 it did not lose much ground, but in 2013 it lost almost 30%. In 2015 it is up by +4% already.
Financial markets have been doing well, that’s all. Real estate is up, stocks are up, bonds are up, art is up…The only sector where Faber sees that there are bargains to be had is in precious metals and in particular the gold and silver stocks from the sector.
Faber also added that he finds US stocks overvalued. Emerging markets are potentially at the start of a bull run, but 2015 might be a bit too early to invest in them, says Dr. Doom. They are not the bargain of the century, but they look to be gearing up for something regardless.
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