Marc Faber, says the gold price may correct to $550 to $600. Although he also says that gold could go to $6000 an ounce, so don't rush out and sell your physical gold!
Just keep accumulating month after month. This will be the last time you can buy gold at these LOW prices! If Marc is right this is great news for those who have not had a chance to get a small collection of gold coins or bars. If he is wrong, well as long as you keep accumulating month after month, it won't matter what happens.
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2006-05-16 13:46 (New York) May 16 (Bloomberg) -- Marc Faber, the money manager who told investors to bail out of U.S. stocks a week before the 1987 Black Monday crash, said commodity prices may fall as much as 30 percent in three to six months.
``Asset markets, in particular commodities and the emerging stock markets, could correct quite substantially on the down side,'' Faber, 60, said in an interview from New York. ``As an investor, you may be better off taking some chips off the table right here.''
Faber, who has a doctorate in economics and publishes a newsletter called The Gloom, Boom & Doom Report, said he holds more than half his own assets in cash or two-year notes. He said he prefers gold over industrial metals including copper and zinc because bullion won't be affected by an economic slowdown.
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``A lot of people think it's a buying opportunity because they are conditioned that when the markets go down, you buy, and then they go up and make new highs,'' Faber said. ``I think this is something more severe. Commodity markets and many stock markets could be down 20 percent, 30 percent over the next three to six months.''
Marc Faber, founder and managing director at Hong Kong- based Marc Faber Ltd., has been urging investors to buy commodities since 2001 and holds 10 percent of his personal assets in gold in a bank vault. The holding has earned 65 percent in the past year.
Gold's 5.2 percent drop yesterday below $700 an ounce for the first time in a week was a ``tiny'' decline, Faber said. Investors shouldn't buy gold now because prices may fall further to $550 or $600 before resuming its rally, he said. Gold closed yesterday at $677.40 an ounce."
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