Tuesday, November 10, 2009

The only way is up - or is it? Gold at $1100 dollars an ounce

Marc Faber thinks you should wait until gold drops to $800 dollars an ounce before you buy any.


Personally, I don't think we'll ever see gold go below $1,000 dollars ever again. However, Dr Faber is a very rich man and I am a very poor man, so maybe he knows something about IMF and World Bank policies that I don't, so I wouldn't entirely rule out a very short-term drop below a thousand again.

In the meantime, however, not being the greatest market timer in the world, I'm going to keep buying gold with every spare penny I have.

It's only a bubble when every idiot in the street is buying into it, and as Mark Dice has found, there are still plenty of zombies out there who think gold is only something you wrap chocolate sweets in.

1 comment:

Paul said...

Good advice. I also think it is quite unlikely that gold will drop below $900 again but it is not impossible either.

But I doubt that behind every drop in the price of gold there is the Gold Cartel. Sometimes there are other factors at play and you can't put meaning behind all the moves in the price of gold. I know, I have followed it for 10 years.

Of course there was one drop that was accomplished by powers that be. It was about 10 years ago when a certain Commisar in charge of setting Interest Rate, I belive his name was Red or Rouge or something in that vain managed to get gold to the lowest point it has been for the past 30 years. I remember that, I hope you remember that too.