Thursday, July 4, 2013
Marc Faber: We are at the beginning of a more significant Asset Class Deflation
Marc Faber ET NOW 03 July 2013
ET Now: Gold prices have put their weakest quarter in as many as nine decades, losing more than 20%. We even saw the $1200 mark crack. How have you read into the decline of gold prices?
Marc Faber: We had a huge bull market in gold and silver between 1999 and 2011. In the case of gold (September 2011), the prices reached $1921 and since then, we have been in the correction period as we are down 37%.
Now, the question is -- does the decline in gold prices signal that despite of all the money printing the world will face a more significant deflationary shock, especially in asset prices? We are approaching a low in gold, but it is not yet confirmed.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.