Marc Faber says Gold Price Correction to $550 to $600

[GoldNugget]

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.

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.

``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."

[delkulara]

Just keep accumulating month after month

Now that is some wise advise IMO.
Although many ups and downs are closer to current reality and I do not wish to manupulate people by stating

This will be the last time you can buy gold at these LOW prices!

Thanks GoldNugget

[purewonka]

Corrections are inevitable. This spells it out:

http://www.kitco.com/ind/Edelson/may112006.html

[delkulara]

Corrections are inevitable

Just as when people get out of CONTROL and dont do as the establishment deem acceptable,they get sent to corrections aka prison.
so it is the same with gold in the eyes of the esablishment.

A wise man knows just as when people get out of todays fake correction facilities(they correct very little of the behavior problems),thus many are repeat offenders.So is the same with gold.

They can put a bandaid on a wound that needs a stitch,but when the bandaid comes off, the scar is raised up more than it needed to be if it was stitched.
(think of a stitch as return to gold based/backed currency & a bandaid as corrections done in a fiat/fake money system)


Nice post and thanks for the link purewonka.