Investment expert Marc Faber says that gold may correct but it will be higher for some time so long as the people running the U.S. government keep interest rates low and continue printing money. Considering that the metal is trading above $1,850 an ounce, gold is “dirt cheap,” Faber said during an interview with Yahoo’s Daily Ticker on Friday.
Faber, the Asia-based publisher of the GloomBoomDoom report, predicted that the price of the precious metal is likely to remain volatile and could certainly experience corrections. In the long term, however, “gold will be very well supported” because of global demographics and the continued decline of the U.S. dollar, he added.
When comparing gold prices to the amount of wealth created in the emerging markets over the last decade and the increase in the monetary base worldwide, the price of gold is “relatively low,” Faber said. “According to some statistics, the gold price today should be worth between $6,000 per ounce and $10,000 per ounce.”