Uber investor Marc Faber says India could drop as much as 20 percent.
"Markets have peaked out and I think we are in a correction period." Faber told The Economic Times. "We had a huge move in India from the lows in 2009 to the recent highs, and we are coming down now."
"We may drop another 10 to 20 percent, who knows? Longer term I am reasonably positive for the Indian economy or very positive for the Indian economy," says Faber, publisher of The Gloom, Boom and Doom report.
"But what disturbs me nowadays are less economic factors than geopolitical factors because the friendship between India and America has been renewed and expanded and that is a threat to China and so China is getting closer," Faber notes.
Faber says that gold, which has gone up from $252 in 1999 to $1,550 an ounce today, may actually be cheaper now than it was then when the price is adjusted for the increase in the quantity of money and credit.
“Today we have many more people that have become affluent, just think of the well-to-do people in India, then Indian middle class, the middle class in China, the well-to-do people in China, it has exploded over the last 11 years,” says Faber.
“And all these people, I guarantee you, they are all essentially flooded with U.S. dollars and so for them to take a little bit of their money and park it into gold is a no-brainer in the long run.”
Money Morning reports that gold prices passed the $1,500 per ounce mark for the first time ever in mid-April and, aside from a couple of short pullbacks in early May, have set up shop in the neighborhood of $1,525 to $1,550 an ounce.
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