NEW DELHI/LONDON (Commodity Online): If you are one of those Indians who are eagerly waiting for the Gold prices to come down below Rs 15,000 per 10 gm so that you can buy some gold jewellery for the wedding of your daughter in the coming month, listen to Marc Faber, the Swiss fund manager and Gloom Boom & Doom editor. Faber says that gold prices will not come down below $1,000 an ounce again!
So all your dreams of buying the metal when the prices come down will not get fulfilled as central banks print money to help fund budget deficits and panicked investors keep on buying gold as a safe haven to park their money.
Speaking at a conference in London this week, Faber said: “We will not see less than the $1,000 level again. Central banks are all the same. They are printers. Gold maybe cheaper today than in 2001, given the interest rates. You have to own physical gold.”
In New Delhi, gold prices this week soared above Rs 17,000 per 10 gm following the rise in prices in global market.
In the latest issue of the Gloom Boom & Doom Report, Faber had expressed some short-term concerns about commodity prices including gold.
“I would regard a failure to hold above the “upside breakout points” in the period directly ahead with great caution. In the case of Gold a decline below $1,000 would likely Lead to further more meaningful weakness, possibly down to between US$800 and US$900,” Faber wrote.
Gold prices having held above the upside breakout, Faber now sees the $1,000-mark as the new floor. China will keep buying resources including gold, he said.
“Its demand for commodities will go up and up and up,” he added. “Emerging economies will grow at the fastest pace.”
In contrast, Western countries will be lucky to avoid economic contraction, while the Federal Reserve will maintain interest rates near zero percent, he said.
Faber has been reiterating, in various recent interviews, the notion of over-stretched assets and a possible short-term dollar turnaround.
(Source: Business Intelligence)
