Marc Faber : Gold Still Cheap but sharp declines are possible

Dr. Marc Faber One of the most prominent gold price bulls over the past decade has At the recent CLSA Investors’ Forum 2010 in Hong Kong, Faber said that he still sees the price of gold as relatively inexpensive, despite the record levels being reached this recently, but there is always a risk of sharp corrections that may occur from time to time , Marc Faber denied that gold could be in any form of a bubble
saying “given all the unfunded liabilities and the money printing in the world and the size of the financial assets in the world.“ Faber advices investors to accumulate gold through monthly purchases , and to avoid putting too large a portion of their money into the yellow metal, because here is always the possibility of sharp declines which can be expected from time to time. “We can have one day a correction of 20 to 30%,” Marc Faber explained. As an example, he pointed to the gold price performance in the 1970s, which saw the price of gold tumble from $195 to $105, before ultimately rising above $800 per ounce.