'I am buying gold stocks:' Dr Marc Faber

Commodity Online
When the world is hit by economic meltdown and recession, which is the best stock or commodity to buy? Ask renowned global investment advisor Dr Marc Faber. Dr Faber, in fact, is bullish and hell-bent on buying gold exploration stocks!

According to Dr Faber he is buying lots of gold exploration stocks and gold producers because their prices were ridiculously cheap.

Dr. Faber, who wrote the best-selling book Tomorrow’s Gold and has long been a holder and proponent of physical gold as a hedge against inflation says gold stocks are the best bet against global financial meltdown.

But he has previously not recommended buying exploration stocks, arguing that they could fall in price and that many companies could go out of business.

Granted the link between the gold price and exploration stocks - remember the latter own the rights to potential future gold field development rights or claims - then such a price hike would mean an even bigger increase in the value of exploration stocks. That these stocks have been beaten down to almost nothing in the recent stock market crash just makes them a better buy.

Dr. Faber is the first major commentator to make this call - and it comes against the worst performance in this sector in 40 years. Of course, for a contrarian there could not be a better buy indicator.

Dr. Faber is about to score another big hit for his investment record. If he was a hunter he would need a castle to house all his trophies by now!