January 28, 2014

Marc Faber sees value in gold miners

Doom master Marc Faber expressed his ideas at the Barron's Roundtable 2014, Marc Faber does, however, lean against Felix Zulauf's recommendation to short the Hong Kong ETF (EWH) as a play on a credit bust in China. Property companies are a big component of the Hong Kong stock market, says Marc Faber, and may have already priced in an implosion as they're selling for just 40-50% of asset values. "I would rather buy Hong Kong shares and short the Nasdaq," says Marc Faber.

It goes without saying that Faber is bullish on gold, but he's a bigger fan of the miners (GDX) recently. Marc Faber is probably bullish on the miners as they are selling at a discount to gold. There is also fast pace of insider buying in the industry. A member of the board at Sprott, Faber says Eric Sprott has been selling company stock to buy shares in small miners (GDXJ). "If the gold price goes up 30%, Sprott's shares might double, but mining stocks could go up four times."

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.