Most recent Faber interview.......

LONDON (Commodity Online): Marc Faber, publisher of the famed Gloom Boom Doom Report says despite the boom in gold prices, there is a likelihood that the yellow metal may fall to $1200 levels. But Faber insists that the gold bull market is solid and continues to be intact.

Faber, whose monthly outlook on commodities, equity markets, currencies, bonds and the emerging markets, is always respected by traders and the global business community says gold and silver are the hottest among commodities and people will continue to invest in them.

Faber says he continues to buy gold ounces, but points out that a correction to $1200 would not surprise him.

According to Faber, equity markets are going strong globally because people have nowhere to put their money.

He said once bond yields start to rise, all of those people who piled into bonds will redeploy funds into equities.

Following are the main highlights of Faber’s global market outlook for the month of December, 2010:

Gold & Silver: Faber still likes gold and continues to accumulate ounces, but he says a correction to $1200 would not surprise him. Gold bull market remains intact as the majority of individual investors and institutions remain under invested.

Bonds: Continues to hate US government bonds.The risk versus reward is not favorable as Faber does not believe bond yields will make new lows. However, he does like Russian and Central Asian corporate bonds, even though he expects interest rates to rise in the future.

Currencies: Euro is going down against the dollar and will likely fall further because of the EU debt crisis. Generally, a higher dollar leads to lower stock prices. Long-term the dollar will weaken but for now it continues to benefit as the world reserve currency.

Equity Markets: Last month, Faber was somewhat cautious on US stocks, saying that sentiment was overly bullish and vulnerable to a correction. So far, we have seen a slight decline in stocks as the QE euphoria fades and worries mount in the PIIGS. Faber thinks the correction could continue as things in Europe worsen. However, he does not expect the market to fall below the 1010-1050 range on the S&P 500 because of the Bernanke. Of all the developed markets , Faber likes Japan the most. He thinks a declining yen will help Japanese equities. Furthermore, Japan is under owned by institutions.

Emerging Markets: Those who are investing in emerging markets are late to the party. The market has mostly priced emerging markets to perfection, which makes further gains difficult. Faber favors frontier markets (especially those levered to natural resources) whose valuations are more favorable. Faber even likes developed markets (US, Europe, Japan) more than he likes emerging markets right now.