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Tuesday, October 4, 2011
Gold price could fall 40%
Marc Faber : gold could undergo a significant correction similar to what happened between 1974-1976, when gold fell 40% - in the latest issue of the Gloom, Boom and Doom Report
Marc, you say it can go lower, are you saying it WILL go lower by 40%? You've been encouraging gold accumulation for quite some time,are you reversing your views now due to the surge in the USD?
I think the gold is over valued, in 1971 when Richard Nixon took the USA off of what was left of the gold standard, gold cost $35 per oz. World GDP is around 20 times larger today so at those prices gold should costs around $700 per oz.
Anyway, I think gold is likely to be another speculative bubble, it produces no yield and seems to have been driven to it's current heights by fear rather than due to it's underlying 'real' value. gold bubble.
can go short
ReplyDeleteMarc, you say it can go lower, are you saying it WILL go lower by 40%? You've been encouraging gold accumulation for quite some time,are you reversing your views now due to the surge in the USD?
ReplyDeleteI think the gold is over valued, in 1971 when Richard Nixon took the USA off of what was left of the gold standard, gold cost $35 per oz. World GDP is around 20 times larger today so at those prices gold should costs around $700 per oz.
ReplyDeleteAnyway, I think gold is likely to be another speculative bubble, it produces no yield and seems to have been driven to it's current heights by fear rather than due to it's underlying 'real' value. gold bubble.