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Good Entry Point For Gold Right Now – Marc Faber

By Kitco News
Tuesday April 7, 2015 3:12 PM

(Kitco News) - Gold’s volatility does not sway this famed economist as he thinks, regardless of recent gold market fluctuations, now is a good buying time.

“My sense is that we’ve been at $1,921 on the gold price in September 2011, we’re now around $1,200. Well, I think this is a reasonably good entry point,” said Marc Faber, editor and publisher of the Gloom Boom & Doom Report, told Kitco News in a phone interview.

“I’m still buying gold… I buy some every month and whenever there is a more significant decline, I add more to my gold position,” he added.

“I believe one day this faith in paper money and in the power of central bankers will be undone and at that stage price of metals – in physical form – will perform very well,” he added.

Looking to the Federal Reserve and interest rate hikes in the U.S., which many expect will hurt gold prices this year, Faber says he doesn’t think the Fed wants to make a move on rates.

“And if they do, at some point, it would be because some really visible inflationary pressures would come up. And at that point, they would increase rates but they would make sure rates stay below the cost of living increases. In other words, we would still have negative real interest rates,” he explained.

 Faber highlighted the Fed’s data-dependency to make any policy moves, and says that it basically means the central bank is saying it doesn’t know what it is doing.

“Personally, I don’t believe that the Fed or Janet Yellen are really running the Fed. I think someone tells them what to do but I don’t know who it is,” he noted.

Shifting his attention to Europe, and uncertainty in the region’s currency, Faber seemed more optimistic than most.

“[M]ost of the European markets – I’m not saying all, I’d say Germany, France, Italy – they’re up something like 10% in dollar terms,” he said.

“I think 2015 will see a year where Europe outperforms the U.S. massively.”

By Sarah Benali and Daniela Cambone of Kitco News sbenali@kitco.com; dcambone@kitco.com
Twitter: @Sdbenali; @DanielaCambone;

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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