Marc Faber Sees Gold as Cheap

Talking to the Daily Ticker, Marc Faber said, based upon statistics, gold should be trading from $6,000 an ounce to $10,000 an ounce. Faber says that's why he doesn't believe gold is in a bubble at this time.

Even so, he does see the strong possibility of gold continuing to be volatile as it continues to climb in price. So far in 2011 it's up by about 30 percent.

Faber particularly cited the continued debasement of fiat currencies as the major driver of gold prices, along with global demographics. He said gold should be "well supported" in light of those realities.

As far as his recommendations, Faber says investors should remain diversified, with 25 percent in stocks, 25 percent in real stocks, 25 percent in gold and silver and 25 percent in cash.

Gold miners today

Eldorado Gold (NYSE:EGO) was trading at $21.84, up $0.04,or 0.18 percent, as of 12:22 PM EDT. Yamana Gold (NYSE:AUY) was at $17.21, falling $0.18, or 1.04 percent. Novagold was trading at $9.39, down $0.12, or 1.26 percent. Goldcorp was at $55.96, gaining $0.12, or 0.21 percent. Barrick Gold was at $54.99, falling $0.19, or 0.34 percent. Newmont was trading at $65.66, level with Thursday's close.