Investors should buy gold even if the price continues to dip, because the precious metal is merely in a correction phase of an upward trend, says investment guru Marc Faber.
Gold could fall to as low as $950 an ounce from current levels of around $1,089 an ounce, Faber says.
But prices will rise again as governments continue to print money to narrow deficits in moves that will ultimately pump up inflation rates, the building blocks of higher gold prices.
The present correction, Faber says, is due to a temporary surge in the dollar's value.
“The weakness that gold has shown recently is no reason for investors to get out of gold investments,” he tells Commodity Online.
“I still believe gold should continue to be part of every investor’s wise investment portfolio.”
Concerns about Greece's budget deficit woes have sent the euro on a roller-coaster ride and have some investors running to gold as a safe haven.
The dollar's outlook remains spotty, say market watchers, which will make gold an attractive buy going forward.
“Precious metals are perhaps the great beneficiaries of the dollar’s weakness,” says Dennis Gartman, a Suffolk, Va.-based economist and hedge-fund manager, according to Bloomberg.
“Gold is, of course, benefiting from the confusion reigning in Europe.”
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