Economist Marc Faber, publisher of the Gloom, Boom and Doom report, says he has no intention of selling his gold as long as certain U.S. leaders remain in power.
“I own my gold and I will never sell it, especially when I see clowns like Ben Bernanke, Larry Summers, Tim Geithner,” Faber says.
"When I'm looking at all these characters in government, I want to own physical gold," he says.
"The question is will there be a crisis of confidence in all paper monies and what will the reaction of investors be?” Faber told The Daily Crux. “I would imagine that when the crisis really emerges, you'd see people flee from all paper currencies into precious metals."
Faber wouldn't rule out a gold price move to the $950-$1,000 level, where gold broke out last year, but expects that if gold goes lower than $1,050, the Chinese will start buying more. “I think they're waiting for lower prices,” Faber says.
"We're just coming out of a seasonal period where gold is often weak, and heading into a period of seasonal strength, so it's possible gold may start outperforming here."
The price of gold is under pressure as the euro is lower versus the U.S. dollar after a recent rally, goldalert.com reports, hovering above $1,150 per ounce.
Analysts believe that if China revalues its currency, there would be lower demand for dollar-denominated assets, which would lower the value of the U.S. dollar and strengthen gold.
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