Marc Faber recommends Precious Metals Equities and Commodities rather than Cash at zero interest

In a fresh interview with CNBC-TV18 aired on Nov 16, 2009 Dr Marc Faber the author editor and publisher of the Gloom Boom and Doom report recommended Equities precious metals especially gold and commodities rather than cash at zero interest that is losing value over time ...gold and when asked if he thinks that there is a big dollar carry trade his answer was :

"I am not so sure there's a huge dollar carry trade. What happens is that worldwide because interest rates are at zero percent – institutions as well as individuals borrow money and they go and speculate. The dollar carry trade is frequently misunderstood in the sense that there are big short positions in the dollars. But one shouldn't over estimate the short positions in dollars because the world is basically awash in the dollars.

There are too many dollars floating around from the American current account deficit that reached USD 800 billion annually and total international reserves in the hands ofcentral banks now are USD 7.7 trillion. That is the dollar overhang and to some extent some people want to hedge their dollar exposure and then they sell dollars and buy foreign currencies and of course also precious metals including gold, silver, platinum, palladium."

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