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Faber Says Buy Gold Explorers Backed by World’s Biggest Miners
Posted By admin On March 5, 2009 @ 10:36 am In Money Watch | Comments Disabled
Bloomberg News 
Thursday, March 5, 2009
March 5 (Bloomberg) — Marc Faber, the investor who advised buying gold in 2001 before it tripled, said he owns Ivanhoe Mines Ltd., NovaGold Resources Inc. and Gabriel Resources Ltd. because explorers will gain the most as bullion rallies.
Commodities will be the first assets to rally when growth returns after a credit collapse led to the worldwide recession, Faber said. Gold explorers backed by larger miners are less expensive than bigger firms and have the financial support to stay in business should the economy worsen, he added.
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Precious metals will climb as other assets decline, Faber said. The 82-company Bloomberg World Mining Index advanced 31 percent since falling to a four-year low on Nov. 20 and prices for the metal climbed 21 percent through yesterday, compared to a 6.4 percent decline in the MSCI World Index of stocks. Yields on 10-year Treasuries dropped 1.3 percent in the same period.
“The mining stocks, especially exploration companies, are relatively attractive, but you have to buy the ones that have a strong backer,” Faber, 63, said in an interview in Toronto. “A lot of companies will run out of money. The ones that have a strong backer will be OK.”
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URLs in this post:
 Bloomberg News: http://www.bloomberg.com/apps/news?pid=20601087&sid=a9o9qIrZpggs&refer=home
 Image: http://www.prisonplanet.tv/subscribe.html
 Marc Faber: We Have a New Gold Standard: http://www.prisonplanet.com/marc-faber-we-have-a-new-gold-standard.html
 Marc Faber Sees No Bubble in Gold Price Run Up: http://www.prisonplanet.com/marc-faber-sees-no-bubble-in-gold-price-run-up.html
 MARC FABER: Sure Gold Is Down, But Apple Is Down By Twice As Much: http://www.prisonplanet.com/marc-faber-sure-gold-is-down-but-apple-is-down-by-twice-as-much.html
 We’re running out of gold: miners: http://www.prisonplanet.com/we%e2%80%99re-running-out-of-gold-miners.html
 Faber to Shiller: You Keep Dollars, I’ll Buy Gold: http://www.prisonplanet.com/faber-to-shiller-you-keep-dollars-ill-buy-gold-22-january-2013.html
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