GOLD PRICE NEWS - Marc Faber predicted a much higher gold price as governments continue to degrade the integrity of their currencies through rampant money printing. The primary catalyst behind the gold price advance over the longer-term will continue to be monetary inflation and rising government deficits, according to the famed investor and author of the Gloom, Boom and Doom report.

GoldAlert Coverage: Money Printing to Continue to Benefit Gold

“These unfunded liabilities are so huge that eventually these governments will all have to print money before they default,” he added. Faber went as far as suggesting that the U.S. would eventually default on its debt obligations - lending support to the gold price, which rallied over $20 to $1,093 per ounce in mid-day trading.

GoldAlert Coverage: Faber Predicts U.S. Default

While the gold price could drop to as low as $950 per ounce during its current correction phase, weakness over the past two months should be looked at as a buying opportunity, according to Faber. Moreover, Faber stated that “If you ask me about the correction in the gold market, sure, we already corrected 10% from the peak and it could last somewhat longer. But when I look at Mr.Obama, Mr.Bernanke, Mr. Tim Geithner and Mr. Larry Summers, the one thing I will never do in my life is sell my gold.”

Mr. Faber went on to say that he believes the gold price will resume its longer-term upward move during the second half of 2010 because of the significant increases in government debt used to bail out nations with sovereign debt crises. “When Greece is bailed out, it’s a further indication that paper money is losing its purchasing power because it’s diluted through larger and larger bailouts and more and more deficits.”

GoldAlert Coverage of the Greece Bailout