Anyone else reminded of the infamous "Stock prices have reached what looks like a permanently high plateau" line? Nov. 11 (Bloomberg) -- Gold wonât 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. The precious metal rose to all-time highs in New York and London today as the dollar weakened. The Dollar Index, a gauge of value against six other currencies, has declined 7.9 percent this year and today fell to a 15-month low. News last week of bullion purchases by the Indian and Sri Lankan governments raised speculation that other countries would follow suit. âWe will not see less than the $1,000 level again,â Faber said at a conference today in London. âCentral 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.â China will keep buying resources including gold, he said. âIts demand for commodities will go up and up and up,â he added. âEmerging economies will grow at the fastest pace.â In contrast, Western countries will be lucky to avoid economic contraction, while the Federal Reserve will maintain interest rates near zero percent, he said.
I understand your point Makloda, and it is possible that you are right and Faber is wrong. However on the other hand, if Bernanke and Geithner and their non-US counterparts are successful at hyperfinflating away debt, then Faber may well be proven correct. Time will tell.
Faber should put his money where his mouth is and sell far out naked $1000 strike GC puts in size. That would spice things up a bit. But then again, I know what you mean, he can very well be correct. For all I know it's about as feasible for gold to go to $500 as it is to go to $5000. I'll short Gold if it drops below $980 by the end of December. I could care less what Bernanke and his lackeys are doing
Whereas printing money is infinite - gold is a finite resource that is increasingly more difficult to find in the quantities it was found in the past. I don't think people are aware of the huge seismic shift that is taking place with the assimiliation of over 2 billion people into the global marketplace. China and India's impact on commodities in the next few decades will be huge.
Two days before he said this, he said gold was going to $800. There are three blogs following his public utterances, he makes a lot of calls, usually the opposite of the current trend.
Moron....well, I've heard everything now. Gold will decline next year as rates increase and the economy picks up. I'm betting to $500 to $600