Eric King:  “Marc, you brought up gold, and I know you recommend 25% in real estate, 25% in gold, etc.  Your thoughts on the gold market?  It’s just been in this long consolidation for almost 2 years now.”

Faber:  “... Following the peak, I think it was September 6, 2011, at $1,921, I maintained that the gold price is still in a correction period.  After the peak in September 2011 we dropped to a low of $1,522 on December 29, 2011.  Since then we traded between roughly $1,550 and $1,700.

I think we may test the $1,522 level again, or even go slightly lower.  It’s possible.  But in different terms to the stock market, which is very overbought, the gold market is now becoming very oversold.  Say another $50 drop on the downside would probably lead to some major low in the price of gold from which the next upward leg could happen.”  (During this interview gold dropped another $15)....

Continue reading the Marc Faber interview below...


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Eric King:  “That next upward leg you discussed, would that take us to new highs Marc?”

Faber:  “Who knows?  But I would, as an asset owner, whether you own bonds, or equities, or real estate, or art, I would at least consider the following possibility:  Maybe, and I am not necessarily saying this is my view, but maybe the sharp decline in the price of gold is an indication that the ‘Great Asset Inflation’ which began essentially in the early 1980s, with stocks and bonds rising until 2007, and real estate in most countries around the world also increasing in value very dramatically, and art prices going up, and wine prices going up, etc. -- that this ‘Great Asset Inflation’ may be coming to an end. 

Don’t forget, and this is something that we always have to keep in mind, every inflation eventually comes to an end, whether it’s consumer price inflation, housing inflation, equity price inflation, or bond inflation, whatever it is, every huge bull market eventually comes to an end.

It is possible that we are close to an end of the huge asset inflation we have experienced, for whatever reason.  It could be geopolitical reasons.  It could be that some of the investors wake up and scratch their heads and say to themselves, ‘What is actually happening?  The economy is contracting and stocks are going through the roof.  Something is not quite right.’

Insider selling has been very high.  I would not use insider selling as a day-to-day indicator of buying and selling, but I would use it as an indication that a well-informed group are selling their shares in their companies.

And by the way, since you asked me about gold, I would say only people that are overexposed to gold hate this setback.  If you are sufficiently diversified you have your stocks that went up very strongly, your bonds that up until recently went up very strongly.  Then I would consider the sharp decline in the price of gold in the last few days as a gift, as an opportunity to increase my position and my weighting in gold.”

This is part I of an incredibly powerful written interview series with Marc Faber that will be released today.  Faber discusses everything from gold, to the end game, dangerous trends, global stock markets, real estate, how investors can protect themselves, central planners, inflation and much more.  The written portion above is just a small part of this extraordinary interview.  The KWN audio with Dr. Marc Faber is available now and you can listen to it by CLICKING HERE.

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interviews with Marc Faber, James Turk, Bill Fleckenstein, Egon von Greyerz, Felix Zulauf, John Hathaway, Gerald Celente and Eric Sprott are available now.  Also, be sure to listen to the other recent KWN interviews which included Art Cashin, Michael Pento, MEP Nigel Farage, Michael Belkin and James Dines by CLICKING HERE.

Eric King

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© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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