Marc Faber has been a gold bull for a long time. In January, he told Maria Bartiromo that she was "in great danger" because she didn't own any gold, and on Aug. 8 he argued that "gold is relatively cheap."
With the metal up some 20 percent from its June low, however, the editor and publisher of the Gloom, Boom & Doom Report is changing his tune.
"The sentiment on gold has recovered," Faber said on Tuesday's "Futures Now" show. "It is relatively bullish."
After all, "we had a big rally in gold already," he said. "I think we will ease back a little bit."
(Read more: Gold will face a rocky week; Here's why)
Instead of gold, Faber recommends considering another classic safe haven: Treasurys.
"I think the sentiment is incredibly bearish about Treasury bonds and Treasury notes," he said. If the market drops, "people will again fear deflation, and they will move into 10-year Treasury notes."
(Read more: Marc Faber: Look out! A 1987-style crash is coming)
Deflation has become a greater concern than inflation, and in a certain sense, that makes it surprising that gold has rallied while bonds have dropped. After all, bonds pay out a fixed amount in a certain number of years, meaning that they become a more prized asset as the dollar deflates (because in a deflationary environment, each dollar becomes worth more).
Meanwhile, deflation also means that it takes fewer dollars to buy an ounce of gold, which should lead the gold price to drop.
That said, Faber does need to watch the market decline to see his bond trade play out. He acknowledges that investors are "not yet" looking for safe assets but predicts that they will "if the market goes down by as much as I think."
His bearish market calls have not played out lately, but only time will tell whether the 20 percent correction Faber has long predicted is finally around the corner.
—By CNBC's Alex Rosenberg. Follow him on Twitter: @CNBCAlex.
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