Investors, particularly those in the "well-to-do" category, could lose about half their total wealth in the next few years as the consequences pile up from global government debt problems, Faber, the author of the Gloom Boom & Doom Report, said on CNBC.

Efforts to stem the debt problems have seen the Federal Reserve expand its balance sheet to nearly $3 trillion and other central banks implement aggressive liquidity programs as well, which Faber sees producing devastating inflation as well as other consequences.

"Somewhere down the line we will have a massive wealth destruction that usually happens either through very high inflation or through social unrest or through war or credit market collapse," he said. "Maybe all of it will happen, but at different times."

Noted for his pessimistic forecasts and goldadvocacy, Faber nonetheless lately has been telling investors that stocks are a good choice as central bank policies pump up asset prices.

He reiterated both his commitment to stocks and gold, but said investors also can find value in other hard assets, particularly in distressed propertiesin the U.S. South.