At a CLSA Investors’ Forum 2010 in Hong Kong, Faber said, “Given all the unfunded liabilities and the money printing in the world and the size of the financial assets in the world, I don’t think we are in a bubble.”
While Faber doesn't believe we're in a bubble with gold, he does advise investors to increase their exposure on a monthly basis, and not to increase the percentage of their overall wealth too much into the metal, even as gold prices continue to skyrocket.
He also said there still will be strong corrections at times, a reason he suggest investing on a consistent basis instead of all at once.
Faber said under the right conditions, there could be a pullback as high as 30 percent. He cited the 50 percent drop in gold prices in the 1970s, where prices fell from 195 dollars an ounce to 105 dollars an ounce, although they resumed their upward climb to over 800 dollars an ounce afterwards.
The point he's making is don't attempt to time the gold market.
in www.lewrockwell.com
Related stocks and ETFs: SPDR Gold Trust (ETF) (NYSE:GLD), Market Vectors Gold Miners ETF (NYSE:GDX), Newmont Mining Corporation (NYSE:NEM), AngloGold Ashanti Limited (ADR) (NYSE:AU), Harmony Gold Mining Co. (ADR) (NYSE:HMY), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), Barrick Gold Corporation (USA) (NYSE:ABX), NovaGold Resources Inc. (USA) (AMEX:NG)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
