Faber: Gold Permanently Over $1,000

Here’s a interesting take: Marc Faber says that Gold has permanently eclipsed the $1,000 level:

“Gold won’t 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.

“We will not see less than the $1,000 level again,” Faber said at a conference today in London. “Central 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.”

China will keep buying resources including gold, he said.

I have no idea if that will be the case — never say never — but it sure makes for interesting cocktail party chatter . . .

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With this post, I add the category “Gold & Precious Metals”

Source:
Gold Price Won’t Drop Below $1,000 an Ounce Again, Faber Says
Zijing Wu
Bloomberg, Nov. 11 2009
http://www.bloomberg.com/apps/news?pid=20603037&sid=az6qQ8ZuXg9M

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