Marc Faber : Gold is Dirt Cheap

Marc Faber : I have argued for years that the Federal Reserve with its artificially low interest rates instead of creating monetary and economic stability has created more instability by creating the NASDAQ bubble the Housing Bubble the commodities bubble and now creating the giant government debt bubble and so we are going to have a lot of volatility every year for the next few years where markets every year will go up and down by at least 20 to 30 percent per annum and I think in real terms inflation adjusted terms they will not make much headway ....I do not think there is a bubble in Gold because first of all whatever you read about gold everybody seems to think there is a bubble these are the same people that thought that gold was a bubble when it was at 400 dollars at 700 dollars and at 1900 dollars , now can Gold correct meaningfully ? for sure , in the great bull market for gold 1970 to January 1980 gold went from 35 dollars to 850 dollars , fro December 1974 to August 1976 Gold price dropped 40 percent and then it went up 8 times so yeah we could have a correction to 1500 , 1600 dollars on the gold price but believe me as long as we have characters like Mr Obama equal Zero and Mr Bernanke , Gold will be very well supported ....quite frankly I have no idea how high gold will go , but I think it will go higher and according to some statistics the gold price today should be worth between $6000/oz and $10000/oz , and all I can say is since the 1980s we have had a huge wealth creation in the world in India in Brazil in Viet Nam in China and in Russia and so forth and so on and when you compare the price of gold to this wealth creation I thing the price of gold is still relatively low