Trichet: Debt Crisis Is Flashing “Red” - Marc Faber Continues To Like Gold And Silver And Accumulating

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Thu, 06/23/2011 - 07:29 | 1394100 swissaustrian
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Marc Faber current issue of the Gloom, Boom & Doom report says that he accumulates PMs but thinks there would be a major correction in all commodities...


Tyler, today, 2 pm, Ron Pauls hearing on auditing us gold reserves:

Hearing entitled “Investigating the Gold: H.R. 1495, the Gold Reserve Transparency Act of 2011 and the Oversight of United States Gold Holdings”
Thursday, June 23, 2011 2:00 PM in 2128 Rayburn HOB
Domestic Monetary Policy and Technology


The opening remarks of the witnesses have been published:

Thu, 06/23/2011 - 07:49 | 1394126 Crisismode
Crisismode's picture

There have been several significant corrections to the PMs since the lows of the late 1990s, but the long-term trend since then goes only one way -- up.


This short-term correction too shall pass.

Thu, 06/23/2011 - 07:26 | 1394104 hugovanderbubble
hugovanderbubble's picture

I have to disagree with Mr.Faber


Tactically Silver is a short  play from 36´s till 31$ (dilutive QEending effect)


ZSL is the play for next weeks

Thu, 06/23/2011 - 07:34 | 1394108 GubbermintWorker
GubbermintWorker's picture

And when he says “not to own any gold is to trust central bankers and that you do not want to do in your life.” he is not talking about etf's. Its all about owning physical gold and silver.

Thu, 06/23/2011 - 07:42 | 1394114 achmachat
achmachat's picture

I have started putting spare cash into silver way too late!
It's been something like 2 months now.
I was able to put together around 2500 ounces during this time but the problem is that I think fiat will start losing value much faster very soon and I won't be able to add much more to the stash.

Thu, 06/23/2011 - 07:45 | 1394117 jackbooted gauleiter
jackbooted gauleiter's picture

Either that, or silver will start to lose value and you won't want to add much more to the stash.

Thu, 06/23/2011 - 07:53 | 1394125 achmachat
achmachat's picture

But the only way for silver to lose value is not only that they stop creating more money out of thin air, but also start destroying all the money they have created since Q1.
What are the odds of that happening?

Thu, 06/23/2011 - 08:16 | 1394141 qussl3
qussl3's picture

Value and price are distinct.

The fiat price may come down soon over the summer but the value of silver as a long term hedge against fiat shenanigans will only increase.


Thu, 06/23/2011 - 09:00 | 1394225 hamurobby
hamurobby's picture

OWN the physical pm (savings), and PLAY the markets with leverage, sleep well.

Thu, 06/23/2011 - 10:48 | 1394786 Thisson
Thisson's picture

WTF do you need 2500 ounces of silver for?  If you have that much it weighs more than you do (I should hope).  Have you considered shifting into gold?

Thu, 06/23/2011 - 12:21 | 1395258 achmachat
achmachat's picture

i just checked (we work with kilos here, so had to do a little conversion) and yes.. it is more than I weigh.

Never thought of it that way. But it is extremely difficult for me to change silver into gold here... you can't just do a swap here. I'd have to find somebody who wants to buy that amount of physical silver and then with that cash get the gold.

But it really doesn't matter, because it's not some kind of liquid asset I need to have access to. It's just in case the fiat loses too much value.

Thu, 06/23/2011 - 07:40 | 1394110 HelluvaEngineer
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What about Europeans trying to protect their wealth?  Don't think this will put a bid under silver?

Thu, 06/23/2011 - 07:42 | 1394116 jackbooted gauleiter
jackbooted gauleiter's picture

No, who wants silver? If you want to protect your wealth you need to put your money into something that people want and are willing to trade for, i.e. cigarettes and whisky.

Thu, 06/23/2011 - 10:42 | 1394744 tamboo
tamboo's picture

cigareets and whiskey

and wild wild women

they'll drive you crazy

they'll drive you  insane

Thu, 06/23/2011 - 07:46 | 1394121 qussl3
qussl3's picture

Europe is an odd case, it now has a supra national political class that is paired with its own CB, the ECB.

Only in hyperinflation will people truly abandon fiat, in the past govts were sometimes cornered into printing and open debasement for political survival.

However, now the ECB can strangle nations through deflation, yet the political consequences will be borne by the local pols.

The ECB may never pursue open debasement like the FED.

Thu, 06/23/2011 - 07:52 | 1394123 LawsofPhysics
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If europeans thought like american patriots it would.  Unfortunately, they don't.

Thu, 06/23/2011 - 08:08 | 1394134 Hobbleknee
Hobbleknee's picture

They pay up to 25% VAT on silver in Eurofagland, so prbably not.  Gold has no VAT however.

Thu, 06/23/2011 - 07:42 | 1394115 KlausK
KlausK's picture


I don't think Mr. Faber will be bothered with such "plays". He has been buying the stuff for years and years.

Thu, 06/23/2011 - 08:23 | 1394148 hugovanderbubble
hugovanderbubble's picture

With lower monetary offer, Precious Metals gonna drop, just that sir.

Thu, 06/23/2011 - 08:26 | 1394154 KlausK
KlausK's picture

They will, you're right. It's just that Mr. Faber quite surely will not care ;) It's part of the fascination emanating from him that it is hard to think of *anything* he really and deeply cares about.

Thu, 06/23/2011 - 08:13 | 1394136 Tater Salad
Tater Salad's picture

I subscribe to Faber and I will tell you that he's been saying for quite some time that Gold and Silver both will come in during the summer months and to simply accumulate, dollar cost average into physical.  So, no he's not wrong in saying buy here as he's been very careful to say accumulate, much different than get long now.

I prefere selling calls on SLV and GLD versus selling here and trying to catch perfect bottoms.  The premiums are huge on both.

Thu, 06/23/2011 - 08:25 | 1394153 10 Euro Münze
10 Euro Münze's picture

Silver VAT in Germany is 7%.  I've bought silve from pawn shops and gold buying places in Germany for spot and paid not VAT.  I'm not sure if they have to charge it on stuff they buy back from the public.     In Germany there are not capital gains on your nominal gains in Gold, unlike in the states where they want to tax you on the inflation appreciation.    No matter how you slice it, savers get screwed by the system.  

Thu, 06/23/2011 - 09:23 | 1394298 uranian
uranian's picture

buy ex-circulating currency from around europe...there's no VAT due on (for example) pre-1947 british silver coinage in the UK because it was in circulation. i hope you have a similar loophole in german VAT laws.

Thu, 06/23/2011 - 08:28 | 1394157 flyr1710
flyr1710's picture

so if they raise rates in july, will it be maroon?

Thu, 06/23/2011 - 09:29 | 1394335 Atomizer
Atomizer's picture

We typically see a PM correction in late summer.

Lastly, Jean-Claude Trichet is losing traction in meeting his objectives. He sure enjoys using the word 'crisis'.

Thu, 06/23/2011 - 09:57 | 1394466 ElvisDog
ElvisDog's picture

Of course, you never know if what Trichet said is what he really thinks, or if he's just doing the same, old, "give me what I want or the world will end" approach.

Thu, 06/23/2011 - 10:02 | 1394472 Eireann go Brach
Eireann go Brach's picture

The same color as Geitners arse hole after a meeting with Wall St bankers!

Thu, 06/23/2011 - 10:13 | 1394568 Crusader79
Crusader79's picture

Dr. Faber began recommending the accumulation of physical gold in 2002 and anyone who did is sitting pretty.

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