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Marc Faber Says Gold May Drop to $800

Commodities / Gold & Silver 2009 Nov 09, 2009 - 01:17 AM GMT

By: LewRockwell

Commodities

Marc Faber the Swiss fund manager and Gloom Boom & Doom editor said he has some short-term concerns about commodity prices including gold. He is also reluctant to invest in bonds.


In the latest issue of the Gloom Boom & Doom, Faber writes: "Since we had in 2008 the third best annual return (41%) in the last 35 years and since each time high returns were followed by negative returns I would be, regardless of the economic outlook, very reluctant to invest in long term government and also in corporate bonds.

Faber says he is more negative about US bonds under a further deterioration of the economy than under a recovery, adding that 'inevitable' further economin weakness 'will lead to further fiscal stimulus packages and necessitate further money printing'.

He believes the latest GDP growth figures are a result of massive government interventions into the free market which inevitably resulted in extremely volatile economic and financial conditions.

As a result assets are over-stretched: equities are too high, the euro is over-bought the dollar is over-sold. Even gold may be due for a short term correction, he says.

"I should also mention some concerns (for now of short-term nature) I have about commodity prices including gold. A large number of commodities including oil, the CRB Index, and gold broke out on the upside in early October," Faber said.

Read the rest of the article

Copyright © 2009 Business Intelligence Middle East

    http://www.lewrockwell.com

    © 2009 Copyright LewRockwell.com - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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