interesting that he thinks Hong Kong safer place to hold gold as China will resist US pressure if it comes to confiscation...but what about the Chinese government if they want the gold - some speculation from others that that may be the reason the Chinese government encouraging its citizens to buy gold - then easy to get ahold of by the government if need be. Anyhow here comes Faber your way......

"By Chris Oliver, MarketWatch

HONG KONG (MarketWatch) – Gold’s rise to a fresh record Friday won endorsement from financial advisor Marc Faber, who said the rally in bullion prices didn’t appear excessive in view of the inflationary backdrop and ongoing bias of the world’s monetary authorities towards weak currencies.

Faber, known as Dr. Doom for his bearish call on U.S. stocks shortly before the crash of October 1987, said he would continue to be a buyer of bullion at current levels.

“Given all the unfunded liabilities and the money printing in the world and the size of the financial assets in the world, I don’t think we are in a bubble,” Faber told a CLSA Investors’ Forum 2010 in Hong Kong.

Reuters

Gold /quotes/comstock/21e!f:gc\z10 (GCZ10 1,278, +4.00, +0.31%) for December delivery rose $4.10, or 0.3%, to $1,277.90 an ounce on the Comex division of the New York Mercantile Exchange Friday, on track for a new record high. In electronic trading ahead of New York trading, it hit $1,284.40 an ounce.

Faber advised investors to build exposure to bullion via monthly purchases and avoid sinking too large a share of their total wealth into the metal, as violent pullbacks can be expected.

“We can have one day a correction of 20 to 30%,” Faber said.

He noted the 1970s bull market in gold saw prices plunge 50%,from $195 to $105 an ounce, before then rising to more than $800 an ounce.

Faber cautioned physical gold holding in the U.S. and Switzerland were subject to the possibility — considered remote by mainstream observers — of forced sales to the government. Precious metals investments held in the Hong Kong or Singapore banks were safer, as these jurisdictions, influenced by China, were likely to resist U.S. political pressure on individual investors, Faber said. "