Marc Faber: Gold Price Won’t Drop Below $1,000 an Ounce Again

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gold-ingots
Gold ingots are seen stacked at the Argor-Heraeus SA gold producing and refining plant in Mendrisio, Switzerland, on Oct. 14, 2009. (Bloomberg)

)Nov. 11 (Bloomberg) — 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.

“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.

To contact the reporter on this story: Zijing Wu in London at zwu17@bloomberg.net

Last Updated: November 11, 2009 11:01 EST
By Zijing Wu

Source: Bloomberg

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