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Gold is a safe commodity: Marc Faber

Published on March 10, 2010 05:50:00 IST

Gold Bullion's position as a commodity rather than a currency sets it in good stead with regards to its price relationship with the US dollar, it has been said.

That is the opinion of Marc Faber, the reputed investment analyst and author of the Gloom, Boom and Doom Report newsletter, who states that while governments can create fresh money supplies, the same cannot be done for gold, according to CNBC.

He told the news provider: "Gold is not the liability of someone else ... its quantity cannot increase at the same rate as you can print money, which will eventually ... weaken the US dollar.

"Eventually if you print money, the purchasing power of money will lose [value] and what will happen is stocks will adjust on the upside ... if you believe in equities."

James Steel, chief commodities analyst at HSBC, has further championed Gold Investment, highlighting the fact that market movements are working in favor of the precious metal.

He said: "The shift in sovereign risk away from Greece on Friday has helped support gold, and risk appetite is higher."

Source: http://www.commodityonline.com/futures-trading/technical/Gold-is-a-safe-commodity:-Marc-Faber-14862.html