In the early stages of the last great bull market in precious metals (1970 to 1980) gold corrected between December 1974 and August 1976 from 195 USD to 103 USD. Thereafter gold soared from 103 USD to 850 USD in January 1980. Had an investor used high leverage to buy gold in 1974, it is very likely that by 1976 he would have been either wiped out or in a very poor financial condition.
Related ETF: SPDR Gold Trust (ETF) (Public, NYSE:GLD)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
