Marc Faber – Major Bottom Forming In Gold But Stocks Shaky
February 21, 2013
Today Marc Faber told King World News that a major bottom is forming in gold, but global stock markets are on shaky ground. Faber, who is author of the Gloom Boom and Doom Report, was speaking with KWN as the gold market was in the midst of being smashed on Wednesday. This is part I of a series of powerful written interviews that will be released today on KWN.
Eric King: “Marc, you brought up gold, and I know you recommend 25% in real estate, 25% in gold, etc. Your thoughts on the gold market? It’s just been in this long consolidation for almost 2 years now.”
Faber: “… Following the peak, I think it was September 6, 2011, at $1,921, I maintained that the gold price is still in a correction period. After the peak in September 2011 we dropped to a low of $1,522 on December 29, 2011. Since then we traded between roughly $1,550 and $1,700.
I think we may test the $1,522 level again, or even go slightly lower. It’s possible. But in different terms to the stock market, which is very overbought, the gold market is now becoming very oversold. Say another $50 drop on the downside would probably lead to some major low in the price of gold from which the next upward leg could happen.” (During this interview gold dropped another $15)….