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Blame the media for gold’s decline: Marc Faber

Investors who favor gold have provided many reasons for gold's nearly 30 percent decline in 2013 and overall demolition since it hit $1,934 in September 2011. But on CNBC's "Futures Now," noted investor Marc Faber provided an especially interesting one.

Investors are shunning gold "because the media doesn't like gold," Faber said by phone Tuesday from Thailand. "Nobody at CNBC owns gold. Nobody at Bloomberg owns gold. Gold is being constantly talked down by the media, and Fed officials, and economists, who also don't own any gold. They're all stocked up in equities."

Indeed, Faber, editor and publisher of the Gloom, Boom & Doom Report, has a major problem with the very language used to describe gold proponents.

"When people talk about people who are optimistic about gold, they call them 'gold bugs.' A bug is an insect. I don't call equity bugs 'cockroaches.' Do you understand? There is already a negative connotation with the expression of 'gold bug.'"

SeongJoon Cho | Bloomberg | Getty Images

In September 2011, as gold was hitting its all-time highs, Faber called the metal "dirt cheap" and discussed the possibility of a gold price as high as $10,000 per ounce.

Gold has lost a third of its value since then. But Faber is a measured bull.

"I have an exposure of approximately 25 percent, and just recently when it dropped, I bought some more," he said. "Nothing is particularly cheap, [but] gold is relatively cheap compared to equities at the present time."

Disclosure: The writer of this article indeed does not own any gold.


—By CNBC's Alex Rosenberg

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