Marc Faber: Say Goodbye To Sub-$1,000 Gold
What a difference a few days make. Last Friday, I posted on Investorazzi:
“I should also mention some concerns (for now of short-term nature) I have about commodity prices including gold. A large number of commodities including oil, the CRB Index, and gold broke out on the upside in early October,” Faber said.
“I would regard a failure to hold above the ‘upside breakout points’ in the period directly ahead with great caution. In the case of gold a decline below US$1,000 would likely lead to further more meaningful weakness, possibly down to between US$800 and US$900,” Faber added.
NEW VIDEO: Is Gold Taking A Breather?
And now this from Dr. Doom, courtesy of Bloomberg’s Zijing Wu yesterday:
Gold won’t fall below $1,000 an ounce again after rising 27 percent this year to a record as central banks print money to help fund budget deficits, said Marc Faber, publisher of the Gloom, Boom & Doom report…
“We will not see less than the $1,000 level again,” Faber said at a conference today in London. “Central banks are all the same. They are printers. Gold is maybe cheaper today than in 2001, given the interest rates. You have to own physical gold.”
The Thailand-based investor talked about other investment topics. Wu wrote:
China will keep buying resources including gold, he said.
“Its demand for commodities will go up and up and up,” he added. “Emerging economies will grow at the fastest pace.”
In contrast, Western countries will be lucky to avoid economic contraction, while the Federal Reserve will maintain interest rates near zero percent, he said.
Source:
“Gold Price Won’t Drop Below $1,000 an Ounce Again, Faber Says”
Zijing Wu
Bloomberg, November 11, 2009
