Gold will stay above $1,000 an ounce forever, says Swiss Dr. Doom

dailyfinance.com ^ | 11.13.09, 12:40 PM EST | David K. Randall

[dollarbull]

Leave it to Switzerland's version of Dr. Doom to make the latest apocalyptic pronouncement on the future of the U.S. dollar -- and the outlook for gold prices.

Marc Faber, investment advisor and fund manager to the uber-wealthy, says gold will forever stay above $1,000 an ounce. If you're unfamiliar with Faber's pitch-black outlook for the future of the Western economies and the developed world in general, well, he's probably best known as the author of the Gloom, Boom & Doom report.

Enough said.

[dollarbull]

Got gold?

[sono]

At least as long as Ozero is President.

[rabscuttle385]

*Ping!*

[Richard Kimball]

IIRC, gold production has plummeted over the last ten years as all the easy gold has been got. Even if the dollar were strong, gold would continue to rise.

[Rafterman]

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[I_Like_Spam]

Yes, but higher prices for gold encourages the search for and development of new sources for gold- increased supply reduces prices in the long term.

Not only that, but higher prices also encourages the development of substitutes for the use of gold- which reduces demand and prices in the longer term.

[lmr]

That Gold is inflated is one of the biggest ruses of the day.

Another ‘bubble’ that will soon pop.

It is speculation driven, just like oil and housing over a year ago.

[packrat35]

Then he is an idiot. I hear the same thing about the stock market and real estate. Also the US economy.

Gold IS in a bubble. Its not IF it will pop but WHEN.

[Diana in Wisconsin]

I do. Suckers. ;)

[PugetSoundSoldier]

Of course it will; gold is above $1100 today (€750). The bubble will pop, gold will slide to $1000; of course, in Euros it'll drop down to €300. It's not that gold will stay highly valued, but that the dollar will lose its buying power.

[Diana in Wisconsin]

$1,123.70 right this minute. Mama Like!

Look for gold to dip to about $1010.00 in the coming weeks as people cash out.

Then it’s anyone’s guess. ;)

[MeneMeneTekelUpharsin]

I love it.

[glorgau]

And real estate is at a “permanently high plateau”.

[al baby]

yup 10 lbs of it got it for y2k

[eyedigress]

Oh well.

[B.O. Plenty]

I like Mercury dimes....

[Ghost of Philip Marlowe]

Excellent points.

The take-away message is that in the short-term, the abundance is less importance than gold’s relation to the US dollar, which is already dead, we just don’t know it yet.

If certain countries (India) purchase 200 tonnes as a way of dumping the US dollar, then there is plenty of supply to move around and meet demand.

As the dollar continues its helix spiral, gold will continue to “move” and thus increase in cost — not only relative to the dollar, but relative to the strengthening currencies.

[TexasFreeper2009]

I read somewhere a while back that all the gold ever mined is still basically in circulation.

I found that amazing.

[JasonC]

There are a bazillion salesmen on the tele every five minutes offering to sell everyone gold. Anybody think that is a sign of such scarcity traders are snarfing up all their can for themselves? If all of these salesmen are sure gold is going to $1500, $2000 an ounce or more, why are they paying money for advertising trying to sell it? Why aren't they just buying it themselves hand over fist with borrowed money? What the heck do they need me for, or my dollars?

[Ghost of Philip Marlowe]

Remember that in a WTSHTF situation, those who have goods to sell will only take your silver coins at face-value, not the value of their silver content.