Gold price touched a new all-time high of $1910 per ounce

The gold price touched a new all-time high of $1910 per ounce early Tuesday! The price of gold rallied alongside the broader stock and commodity markets as expectations of a fresh round of quantitative easing made the rounds on trading desks across Wall Street. WTI crude oil gained 1% to $83.10 per barrel, boosted by weakness in the U.S. dollar. Silver futures rallied 1.4% to $43.00 per ounce.

Marc Faber – author of The Gloom Boom & Doom Report and one of the more prominent gold bulls in recent years – provided his latest outlook on the global economy, financial markets, and the gold price last week. “Financial conditions are today worse than they were prior to the crisis in 2008,” he asserted in a telephone interview from Thailand. “The fiscal deficits have exploded and the political system [in both the U.S. and Europe] has become completely dysfunctional.”

As for the Federal Reserve, Faber once again spared no criticism of the U.S. central bank. “The Federal Reserve is a very evil institution in the sense that they punish decent people who have saved all their lives…These are people who don’t understand about stocks and investments, and suddenly they are forced to speculate.”

Given his disdain for fiat currencies, Faber criticized the U.S. dollar. “The function of paper money is to facilitate the exchange of goods and services, to be a store of value and a unit of account. The U.S. dollar fails on all three,” he argued. “Intelligent people, instead of holding cash in U.S. dollars with zero interest rates, why not hold money in gold and silver?”

With regard to gold and silver prices, in the most recent edition of his publication Faber wrote that “I am not sure how high the price of gold or silver will increase but when I consider the further inevitable growth of the US and other governments’ debts, the creation of paper money in the world and especially at the low gold ownership rate in the world, I am confident that the price trend of gold is up.”


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