Friday, April 23, 2010

Marc Faber Says Gold Has A Long Way To Go

In his outspoken way, he says that as long as there's inflation and near-zero interest rates, gold will continue to go up - way up.
Faber said that "as far as the eye can see, interest rates under Bernanke will stay at zero and below." He noted that the current Vice Chairman of the Fed , "Janet Yellen, another totally, ignorant economist, removed from any reality, said herself six months ago, ‘if I could implement interest rates below zero, I would do it.’ So now you know what the policy in the US will be,” Faber said.

He also said that if gold prices substantially rise one day, there could be expropriation. “The Americans could force the Europeans to do the same – once they have all the gold in the world they would re-value it at $10,000 an ounce," Faber said.
Faber also took a cyncial view of the the SEC going after Goldman:
"Obama has lost the trust of the people; his approval rating is worse than Bush at this stage in the presidency. When people are dissatisfied in a democracy - you go after a minority to target – in the case of America you go after Goldman Sachs because it is the symbol of Wall Street and excessive money creation and there is also a tone of anti-Semitism there.”
And, he had some sharp-tounged words about the folks who claim that gold is being held down by manipulation:
On the subject of market manipulation talk, Faber said that if market manipulation exists then it is good for gold buyers since it keeps the price down.

"If you have manipulation to keep the price down, it eventually goes ballistic. So, all the people that are bitching about the manipulation of silver and gold should be happy that it is manipulated because it still gives them an opportunity to buy it at a depressed priced,” Faber said.

Faber said he suspects that there may have been some efforts by Central Banks to keep the price down but wouldn’t go as far to call that manipulation.

“If someone talks about manipulation, well, I think the whole world through government intervention has become manipulated so it is very difficult to make forecasts,” said Faber.

The Commodity Online article from which the above was lifted has some more Faber plain talk.

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