What happens when you bring together four of the top minds in the precious metals investing space to share insights from the front lines of gold, silver platinum and palladium investing? These excerpts from a Sprott Resources Roundtable featuring Gloom, Boom and Doom Report Publisher Marc Faber, Sprott Asset Management Chief Investment Strategist John Embry, Sprott Global Resource Investments Founder Rick Rule and Sprott Asset Management Founder Eric Sprott prove that great minds think big.
Sprott Resources: Marc Faber, help us understand the Federal Reserve’s recent announcement regarding tapering.
Marc FaberMarc Faber: When the Fed began Quantitative Easing 1 (QE1) in 2008, I said it would continue until QE99. So I’m not so surprised by the “no tapering decision.” But this money printing has numerous unintended consequences and actually does not help the economy much. Asset purchases benefit maybe 1% of the population, the super-rich. I’m not complaining because I own stock, bonds and real estate, but from a social point of view, it’s undesirable because it creates widening wealth inequality and dissatisfaction among the majority of voters. This could lead to more votes for a populist leader who will then tax the wealthy more heavily.
SR: You are based in Asia. China, India and Russia have been very big buyers of gold bullion. What is behind that trend?
MF: In the Far East, we have a tradition of owning physical gold, but what is new is the Chinese government encouraging citizens to own gold. I believe that in the face of political instability and a lack of faith in the U.S. Dollar, Asians will continue to accumulate physical gold and silver.
Source The Gold Report