Marc Faber: gold’s plunge is an ‘excellent buying opportunity’

The huge drop in the gold price is great news, says Marc Faber, one of gold's best-known fans.

"I love the markets. I love the fact that gold is finally breaking down. That will offer an excellent buying opportunity", said Faber in an interview with US financial news channel Bloomberg.

At the time of the interview gold was at $1,480 an ounce and falling. Faber admitted it could go as low as $1,300. But even so "the bull market in gold is not completed", says Faber.

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To make his point, and show why he is so sanguine about the price fall, Faber compared gold to other assets.

"At the moment, a lot of people are knocking gold down. But the S&P is not even up 1% from the [pre-financial crash] peak in October 2007 [and] up 2% from March 2000 high."

Gold, on the other hand, has performed much more strongly, says Faber. Indeed even at today's prices, gold is up around 90% and 366% from those two dates respectively.

Faber, who writes the Gloom, Boom and Doom newsletter, thinks gold may be in the doldrums for the next few months. But eventually, says the 67-year-old, it will resume the rise it has enjoyed since 1999.