If you stand aside and you look at these two events, it would suggest that they are strongly deflationary pressures in the system. At the same time we have bonds rallying very strongly. Today we have commodities breaking down including gold. I would like to make one additional comment. Nobody knows for sure but I think the fundamentals for gold are still intact. It could be at $1400, it could be today at $1300, but I think that the bull market in gold is not completed.” So I am happy we have a sell-off that will lead to a major low. The S&P is up 2% over the March 2000 high. Over the same period of time, even after today’s correction gold is up 100%. At the same time, the S&P is at about not even up 1% from the peak in October 2007. But if we look at the records, we are now down 21% from the September 2011 high. At the moment, a lot of people are knocking gold down. That will offer an excellent buying opportunity. I love the fact that gold is finally breaking down. Marc Faber on Bloomberg TV on the Fall in Gold Prices
