Friday, August 30, 2013
Marc Faber: The Price of Gold will trend higher. Most likely we’ve seen the lows below $1,200
HAI: In light of all these issues, what’s your view on gold? Is the current rebound in prices sustainable?
Marc Faber: We have had a meaningful correction. From $1,921 in September 2011 to less than $1,200 at the bottom is a fairly large correction. But in longer-term bull markets, these kinds of corrections do occur. We had a 40-50 percent correction in 1987 in equity markets. But the bull market lasted until the year 2000.
Looking at the fundamentals, looking at how debt will continue to increase and how central banks will continue their monetization not only in the U.S. but on a worldwide scale, I assume the price of gold will trend higher. Most likely we’ve seen the lows below $1,200.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.