Marc Faber Clarifies Gold Outlook

by | Nov 17, 2009 | Marc Faber, Precious Metals | 8 comments

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    Over the last week there have been a several different reports regarding Dr. Marc Faber’s comments about his short- and long-term outlook for gold.

    In one instance, there was a report from Commodity Online that Dr. Faber suggested the price of gold would drop under $1000, back to the $800 to $900 level.

    Legendary investing guru Marc Faber says gold price is rising without any fundamental factors and thus the price of the yellow metal will plunge to $900-$800 levels.

    Faber, celebrated author of Gloom, Boom & Doom Report says that gold prices will dip in the short term, falling to $800 an ounce from current values around $1,117.

    A Bloomberg report from the day before said that Marc Faber believed gold will never drop below $1000 again.

    “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.”

    Since there seemed to be a little bit of confusion, SHTF Plan contacted Dr. Faber, publisher of the Gloom Boom & Doom Report, and asked him to clarify these two reports and his outlook on gold. Here is Dr. Faber’s response, provided to us November 13, 2009:

    “What I said and also wrote in my last report is this:

    If the gold price breakout move above $ 1000 is real then gold should not decline again below the $950 – $1000 zone. Before, this range was resistance and now it should be a support range.

    However, if gold dropped below this range than I would be very concerned that a decline to around $ 800 could take place.

    I have consistently repeated that I hold gold and that I recommend the accumulation of gold.”

    Marc Faber’s long-term gold outlook has not changed from a year ago and his recommendation to hold and accumulate suggests he is looking for additional price gains.

    However, with the recent inverse relationships between the dollar and asset prices, including commodities and stocks, a rally in the dollar may have negative consequences for not just stock markets, but gold, as well. Whether a pull-back will occur is hard to say, though Dr. Faber has recently said that The Dollar Can Easily Rebound.

    For short-term gold traders, proceed with caution. For long-term holders of gold, the up-trend is still intact.

    A big thank you to Dr. Faber for clarifying his comments on gold.

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      1. Faber frustrates me sometimes. It’s like he talks in riddles… like he doesn’t want to be fully understood. I can appreciate his long term predictions, but he has been wrong in the short term more than once. Especially when he said he expected to see a significant rally in the dollar IN THE NEXT TEN DAYS TO TWO WEEKS (back in mid-september). Of course the dollar continued to fall and is still falling. All the people who listened to him and shorted precious metals or the stock market, learned a pretty expensive lesson. I prefer to listen to guys like Jim Rogers who say stuff like “I’m a horrible short-term trader”. If a billionaire tells you he can’t guess the near future, what makes you think you can?

      2. Yeah, Faber is like a cross between Yoda (Eps. IV-VI) and The Oracle from The Matrix.

        He never seems to say what he really means.

      3. Well, he cant be wrong if you dont know what side he was on.  He isnt stupid. 

      4. Thanks for asking Marc Faber this question, I also wondered about these statements!

      5. Thanks for taking the time to contact Dr. Faber for clarification. Your site continues to bring valuable and insightful commentary. Would like to see more from Institutional Advisors Bob Hoye.

        I am a subscriber to Dr. Faber’s GBD Report and he has been consistent on his Outlook for the Yellow Metal…the way he conveys his message is not tricky; simply a way of stating that markets are unpredictable and if certain moves materialize – then you can anticipate better entry and exit points (as a trader). As an investor – he is on the MONEY!

      6. Jose, thanks for your comments. I am currently working on a new web site design. I intend to add some more content from experts regularly, including bob hoye’s weekly interviews at Howe Street.  Hoye is great and provides some excellent analysis. I try to add his stuff from time to time and will try to do so more often. I do not subscribe to Institutional Advisors, but may do so in the future. If you happen across any good info from Mr. Hoye (or anyone else) please feel free to shoot an email over and we’ll get it up on the blog.

        Thanks for visiting SHTFplan!

      7. I love a Marc Faber…he seems to enjoy the end of the financial world…he is a kinda of GURU. One of the things to keep in mind about Mr. Faber is that he is a technician, obvioulsy he’s more than that but he is a technician. To quote John Bollinger “a fundamentalist thinks he is right a technician thinks the market is right”. Faber is only saying what he sees on that particular day and he maybe speaking to a particular country, commodity, or market.  He is also very humble and good humoured about himself and his predictions…

      8. I think Anthony is right on target. – – Faber isn’t contradictory or trying to have it both ways, at all. He has a short term trading outlook and a longer term ec0nonomists outlook. – – I happen to share his views – – – in the short term I’m looking for a correction in the price of gold & will trade as appropriate for this possibility. In the long term, given the actions of govts, I expect gold to rise in dollar prices. – – – – I enjoy watching Marc Faber’s interviews. He seems to have the attitude of ‘well, even if I can’t do anything about it, – – I can at least marvel at the spectacle of human stupidity in action.’ – – –

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