Sept 6, 2011
Gold’s rally above $1,900 an ounce shows no signs of a “bubble” as central banks continue to boost money supply that has helped spur bullion to a record, according to investor Marc Faber.
“I don’t think that gold is in a bubble,” Faber, publisher of the Gloom, Boom and Doom report, said in a phone interview yesterday from Chiang Mai, Thailand. “When you buy gold, it’s an insurance against systematic failure and problems in the financial markets.”
Gold climbed to a record $1,921.15 an ounce today, underscoring Faber’s contention that declining equities and weakening currencies will support demand. Speculative buying had pushed the gold market into a “bubble that is poised to burst,” Wells Fargo & Co. analysts led by Dean Junkans said in a report last month.
“I’d buy every month a little bit of gold,” Faber said.