Photo: Bloomberg TV
In an interview with The Gold Report, Marc Faber discusses the characteristics of a gold bubble.TGR: Investment show commentators have been talking about gold being in one of those mania bubbles you described because it’s been increasing for 11–12 years. Do you agree?
MF: No, gold is not in a bubble. It wasn’t in a bubble in 1973, either, but it still corrected by 40% then. I don’t believe gold is anywhere near a bubble phase. A bubble phase is characterised by the majority of market participants being involved in a market space. I saw a gold bubble in 1979–1980, when the whole world was dealing—buying and selling gold 24-hours a day, globally.
TGR: But not since then?
MF: No. If you went to an investment conference in 1989, 90% of the people there would have told you they owned shares in Japanese companies. In 2000, 90% of them would have said they owned NASDAQ shares. Only about 5% of the participants at an investment conference today would tell you they own gold. Very few people in this world own gold.
We’ve heard people say this a bunch of times. Has anyone tested it recently?
(Via Elisa Parisi-Capone)