“In Gold or Silver terms, the Dow Jones over the last 10 years has already lost over 80% of its value”, said Marc Faber.
Just as I pointed out for Hong Kong real estate, prices have dropped by some 80% since 1997 if you price homes in gold despite recent rise in prices. But I rather struggle to say if that means anything in particular. It could well mean that gold is overpriced, no?
That is the problem: while the Federal Reserve is increasing the monetary base, everyone seems to assume that the Fed is debasing the currency, such that must go higher, and hard assets will be good investments. But we are not in a gold standard, why are we still thinking in a gold standard era way?
I will have more thought on gold later.
Interestingly, he also mentioned this rather crazy idea of class warfare, which is actually… not wrong, although not so much a conspiracy as what he was saying, I suppose.
This article originally appeared here: Marc Faber: DJI Lost 80% In 10 Years In Gold Term… So What?
Also sprach Analyst – World & China Economy, Global Finance, Real Estate
- Hong Kong Property: Home Prices In Real Term
- Gold fell
- Inequality and Monetary Policy
- Monetary Policy
- Why G20 does not matter now
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