Global investing guru and publisher of the famous Gloom, Boom and Doom report Marc Faber says gold price may continue to drop as low as $950 to $1,050 an ounce, but that is not any reason to sell gold. “The dip in gold price is a correction and this should be taken as a great buying opportunity,” Faber said.
As gold price has surged to touch historic highs in the last few months, Faber, a gold bug, has been telling investing public that the yellow metal is cheap at $1,100 per ounce and it will be prudent if they buy the yellow metal at this rate or below so that they can reap rich dividends in 2010.
According to Faber, gold price has been falling in the last few weeks thanks to a temporary surge in the US dollar. “But the weakness that gold has shown recently is no reason for investors to get out of gold investments. I still believe gold should continue to be part of every investor’s wise investment portfolio,” he said.
Recently, Faber stated that gold price wouldn't drop below the $1,000 an ounce mark ever again. A renowned investor that he is, Faber feels that it is the right time to buy gold at these current levels, rather than dumping gold.
”There is no doubt the printing of money from central banks around the world is generating inflation, and it will increase going forward. That alone is a good enough reason to have gold in your investment portfolio,” Faber said.
This is an interesting idea. Your thoughts.