HONG KONG (Commodity Online): Legendary economist and publisher of the Gloom, Boom and Doom report, who recently said that the world is flooded with US dollars and grossly underweight in gold has suggested investors to keep on accumulating gold.
Gold may continue to fall in the next three months but investors are better off accumulating the yellow metal, he told a Bloomberg Television interview. He said that he still favours gold and silver.
Marc Faber said that US economy needs to go through a devastating crisis before it can make any meaningful recovery. The US debt problem hasn't gone away. Gold advances to a record high of $1577 an ounce on May2, 2011 but thereafter has failed to gain momentum despite analysts forecasting better days ahead.
US gold futures plunged 2.4 percent last week, the biggest loss since the week ending May 6. The weakness in oil prices, EU support to Greece to avert a major financial crisis and strengthening of US dollar weakened the safe haven appeal of gold last week, analysts said.
Silver prices have weakened following outflow of funds from top silver ETFs and weaker spot market demand in major consuming nations such as India and China last week. Silver prices have dropped to $33.68 an ounce after plunging 4.4 percent last week.
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