Robert Shiller, a professor of both economics and finance at Yale and author of the best-selling book, Irrational Exuberance has recently questioned Marc Faber’s decision to stack physical gold instead of holding onto worthless fiat.
“I’m prepared to make a bet.” said Faber. “You keep your US Dollars and I’ll keep my gold. We’ll see which one goes to zero first.”
Marc Faber admitted to being too gloomy, joking that “Sometimes I’m so concerned about the world I want to jump out of the window.”
But “in the worst case scenario, in the systemic failure that I expect, [gold] would still have some value,” the Swiss author and money manager went on.
Shiller responded “I’m inclined to think gold prices after this crisis might return to a lower level. Given the low yields of the alternatives [ie, bonds], the valuation of the stock market doesn’t look so bad.”
When the financial system “goes down” replied Faber, “and only plastic credit cards are left, maybe then people will realize and go back to some gold-based system or such.”