Marc Faber Goes Gloomy on Iran-Israel – Urges Gold Buying

Marc Faber, author of the Gloom, Doom, Boom Report

Our favorite resident optimist, Marc Faber, continued his sunshine ways the other day by predicting that the Iran-Israel clash is imminent. Rising political tensions and the near constant drumbeat of war in US media is leading the course to war. Thought experiment. Look at the run-up coverage to the Iraq War and then compare it to today. If anything, the media is more bloodthirsty than before.

Nothing says ratings like a JDAM slamming into a city block. Add in AC360 breathlessly covering it and you have the real reality show for the masses. Move over Snooki. We have some stuff to blow up.

Marc Faber maintains that any regional conflict will undoubtedly involve the US. This is not just the Osirak reactor the Israelis took out in the early 80s. A lot more will be involved and they lack the full capability to make that many hits at once without incurring losses. So US strikes would invariably be involved. And then what? What’s the end game? Regime change? That involves an invasion force. What of Russia and China? What would their response be?

Faber does have a solution for the common investor. Buy precious metals. His thinking is rampant inflation needs a hedge. And nothing spells hedge like gold and silver. He also says Western worries over China’s growing ‘dominance’ may lead them to turn off the oil tap. Sure China is growing into a powerhouse. But that is wholly dependent on consumers buying their goods. The fears of China are overblown similar to the Soviets circa the 1980s.

Regardless, Faber’s advice on precious metals is sound. It is like health insurance. You don’t buy it to have the heart attack, you buy it in case of a heart attack. Same here. Gold and silver is there in case the system has a heart attack. You can keep trucking along. And that is what it is all about.

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About Danny Fisher

Danny is the old hat at Active Investor. One of the been around the block a few times traders, his main focus is on overall market conditions. Be it some new merger talk or Washington being Washington, you can expect Danny will be on top of it.

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