“Trade of the Century”

Marc Faber is, admittedly, no fan of central banks. Nor is he a proponent of our current monetary system, believing it to be nothing more than a grand-sized Ponzi scheme. Especially Japan’s.

Faber is the “contrarian’s contrarian.” He’s the water near a fire. The match near a bone-dry forest.

Recently on CNBC (his nemesis some might say), he gave his “trade of the century” call. Stating, “I think people will wake up finally and say, if they can short central banks, that is the trade of the century.”

While it may go unsaid in the interview, Faber clearly knows that the only way to short central banks is to hold gold. Not paper gold. Physical.

So the question for many is… should we listen to Marc Faber? Or is he just another pundit on financial television spouting off nonsense to create some noise around his company’s name?

Well, let’s take a look at his record. He has received an A+ rating from Pundit Tracker. Out of 207 predictions graded, 149 of them were correct. That is a 72% hit rate. In the financial world, this is extremely impressive.

In contrast, CNBC’s very own resident stock guru Jim Cramer is given a D rating. Out of 678 predictions, 320 were correct. That is a (rather dismal) 47% hit rate. Some could, and should, argue that’s shockingly bad, especially when Cramer is actually paid to go on national television and make stock calls.

What does this all mean? As with most things, that is open for interpretation. Should we all run out tomorrow and cap our teeth with the shiny yellow metal? Maybe. But probably not.

One thing that can be said for certain, though, is that a television network that is dedicated primarily to pumping up U.S. stocks should really try to hire someone who has the ability to get it right even half the time. That’s a 50–50 chance we’re talking about. The same odds as a coin toss. Better can be done.