25 years ago Marc Faber said buy Gold, and he continues to recommend the precious metal as "disaster insurance policy" and "as a hedge against incompetent and dysfunctional governments" for diversified portfolios.
Dr Marc Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude.
Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, MARC FABER LIMITED which acts as an investment advisor and fund manager.
Last week, gold surged to a record $1,813 an ounce, and it has since settled at around $1,770, as investors sought a refuge to assets viewed as a safe haven.
The release of a series of disappointing data in the United States and its widening budget deficit raised concern that the biggest economy in the world would slip back into recession. Worries about Europe's debt crisis spreading to France, Italy and Spain also sent investors fleeing to the Swiss franc and US Treasurys.
"I am not sure how high the price of gold or silver will increase but when I consider the further inevitable growth of the US and other governments' debts, the creation of paper money in the world and especially at the low gold ownership rate in the world, I am confident that the price trend of gold is up," Faber wrote in the August edition of his newsletter the Gloom Boom & Doom Report.
Still, the recent run-up in prices may have been excessive. It took just less than one month for gold to rise by $200 to $1,800, compared with a 10-month $300 advance from $1,300 in September.
"Near term I think the price could drop," Faber told the Jakarta Globe via e-mail on Tuesday.
Yet he holds on to the view that gold, which is still far from record highs based on inflation, remains an important asset play, and any correction is a buying opportunity. According to some data reports, on an inflation-adjusted basis gold topped at more than $2,400 an ounce in 1980.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.