Marc Faber: Gold Is Never Going Below $1000 An Ounce

marcfaber wondering tbi

In a recent interview, investment guru Marc Faber explained that he doesn’t think gold is ever going below $1000 per ounce.

From Faber:

Basically we had a good move in gold whereby we had fluctuated for two-years between USD 800 per ounce and USD 1000 per ounce and now we’ve broken through the USD 1000 per ounce level with quite conviction and heavy volume. I believe that whereas in the past the USD 1000 per ounce level was kind of a resistance level, now it becomes a support level. I don’t think that you’ll see gold below a USD 1000 per ounce probably ever again So I’m actually quite positive. Maybe gold at this level is a better buy than it was at USD 300 per ounce in 2001. 


Faber makes a number of other points in the interview:

  • Stocks have come up very far, very fast. At this point the downside risk may outweigh any further upside potential, but the downside won’t be extreme. He says the S&P may decline from its current level to around 900 but is unlikely to break below low of 666. It may however go up to 1200 next year.
  • Rising stock markets in the US and Europe may be a sign of economic weakness, which would extend zero interest rate policies and trigger new stimulus plans.
  • With rising demand in China and India for oil, and falling global reserves, there’s very little downside in oil.
  •   On the much talked about issue of the dollar carry trade, Faber says,he is not sure if there is a huge dollar carry trade. “I would short dollar currently, but hold gold,” Faber says.  


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