Thursday, March 18th, 2010
The markets have created their own gold standard because of uncertainties regarding other asset classes, Marc Faber, author of “The Gloom, Boom and Doom Report,” told CNBC Thursday.
“I think we already have now a gold standard … created by the market place,” Faber told “Squawk Box Europe.”
“We have the (exchange traded funds) that have proliferated and we have more and more physical buying of gold,” he said.
Between 2001 and 2008, gold outperformed bonds and stocks, but starting with 2009 stocks outperformed, which means investors must own gold because generally retail investors cannot move in and out of different assets like institutional investors, Faber said.