During a time of stagnating emerging market growth and increasing Asian gold demand, Marc Faber, Director of Sprott Inc. and Publisher of TheGloom, Boom and Doom Report, was kind enough to share a few comments.
According to Marc, “if the Chinese economy imploded, it is likely that…the government would implement a devaluation of the yuan,” leading to similar currency moves in the region.
Here are his full interview comments with Sprott Global Resource Investment Ltd.’s Tekoa Da Silva:
MF: Well, that’s a very good question because we
have an economic slowdown in emerging economies that is very pronounced
and I think some emerging economies may be submerging soon, and have
actually significant economic problems. Then the question arises, “Will they continue to buy gold?” Say if there was a recession in China, in the downturn, would people buy gold?
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While Jay Carney and the White House continue to press their “sell” recommendation on Russian assets, it appears the market is buying the news (after selling the rumor). Russian stocks are ripping higher on “better than expected” sanctions and the Ruble is strengthening notably… So given that the market is signaling these sanctions are clearly weaker than expected, we should certainly not expect any Russia de-escalation soon.
Russian Stocks soaring…