Marc Faber: "Gold Is Quite Oversold. I Will Consider Buying Gold Over The Next Two Days"
Anyone trading gold and silver most likely had a heartattack this morning. Of that subset, anyone who survived and traded with conviction made a killing, following an impressive surge in both metals, which saw silver soar from $26 all the way back to $30, after it was made clear that there was no behind the scenes liquidation of the metal but merely more piggybacked margin hikes this time out of China as was first reported by Zero Hedge. Another factor that helped was Marc Faber's appearance on CNBC earlier, who said that gold is now "quite oversold" and that he would be adding to the yellow metal in the "next two days." In retrospect, he should have been adding today to his existing holdings. However, since he already has 25% in gold, he is forgiven. Mutual funds which, however, have about 1% in gold, are not.
Some of the key soundbites from Faber: "Gold is quite oversold and I would consider buying some gold in the next two days... We overshot on the upside when we went over $1,900. We're now close to bottoming at $1,500, and if that doesn't hold it could bottom to between $1,100-$1,200. "Both equity markets and gold markets have become very oversold, and I think a rebound is occurring. Following this rebound, which I expect to get underway this week, there will be a longer slowdown." In other words, Faber shares our undying certainty that should stocks plunge and they will once the rumor mill halflife is measured in nanoseconds, the Fed will have no choice but to intervene again, with trillions of monetization. We speculate that that would not be exactly negative for gold...
And naturally, CNBC's spin on this same interview is that according to Faber gold is plunging to $1,100... Sigh.