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Faber to Maria: "You Don't Own Gold And You Are In Great Danger"

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Gold rose $13.80 or 0.83% in New York yesterday and closed at $1,676.50/oz. Silver slipped to a low of $31.24 in the morning, but it then ran up to a high of $32.24 and finished with a gain of 2.01%.

Gold hovered nearly unchanged after surprise GDP figures showed that the U.S. economy contracted and the U.S. Federal Reserve maintained asset purchases. Platinum is on track for its most stellar month’s performance in a year.

The U.S. GDP was -0.1% for Q4 and it was expected at 1%. This was its largest drop since 2Q 2009 as U.S. military defence spending plummeted. The Fed left their $85 billion bond-buying stimulus plan intact, citing the monetary stimulus was critical to decrease unemployment, however mentioned this lull in the U.S. economic recovery was temporary.

Investors will be watching the nonfarm payrolls data out tomorrow.

Gold reached multi year highs in Japanese yen again overnight.

TOCOM's December contract, reached a record 4,944 yen a gram or 153,000 yen per ounce. Gold as climbed more than 6% this year on a weakening yen after Prime Minister Shinzo Abe called on Japan's central bank to ease policy even more aggressively.


XAU/JPY 5 Year – (Bloomberg)

Reuters reported a dealer in Tokyo saying "Of course a weaker yen attracts buyers, but I think we shall wait for the price to hit 5,000 yen before we see some selling."


Gold Silver Ratio, Quarterly – (Bloomberg)

India's government announced it does not have plans to for additional taxes or curbs on imports of gold as it waits to see the impact of recent tax increases, said a finance ministry official yesterday.

Respected CNBC financial journalist Maria Baritromo interviewed Marc Faber, a contrarian Swiss investor and publisher of the Gloom Boom and Doom Report.

“You said a minute ago that markets go up and down, doesn’t gold go up and down too?” said Baritromo.

“Yes it does go up and down but I am fearful of a systemic crisis, wars and so on and it is because I am fearful that I own gold,” said Faber.


Maria Baritromo and Marc Faber – (CNBC)

Faber then asked Baritromo if she owned any gold.  Her response was that I own earrings and jewellery.

Faber relied, “Sorry to say you are in great danger because you don't own any gold...but you have a golden personality!”

This tiny snippet of an interview highlights what research at GoldCore has been saying for years. Although many people think gold is a huge bubble like the housing market that burst, it is simply not the case. 

How many people do you know that diversify their portfolios with precious metals like silver and gold bullion?  Systemic risk is defined as "financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries". This is akin to the effect of the proverbial pebble when dropped in the pond, it ripples outward.

The global marketplace is interconnected and potential danger across the pond such as the Lehman Brothers catastrophe affects investors across the world.  Bullion investment is a proven hedge to diversify against systemic risk.

NEWS
Gold Trades Near One-Week High on U.S. Economy, Fed's Stimulus - Bloomberg

Gold holds near 1-wk high on Fed; TOCOM hits record - Reuters

Gold rises on surprise drop in US growth, Fed - Reuters

Gold, Silver Climb on GDP Data, Stimulus: Commodities at Close - Bloomberg

COMMENTARY
Gold or Platinum—Which Will Get to $2,000 First? - CNBC

Kaye - Expect A Massive Silver Short Squeeze – King World News

Things That Make You Go Hmm - Such As Currency Wars – Zero Hedge

Video: Gold Caps Biggest Gain in Almost Three Weeks - Bloomberg

For breaking news and commentary on financial markets and gold, follow us onTwitter.

 

 

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Fri, 02/01/2013 - 00:40 | 3205181 holdbuysell
holdbuysell's picture

Let's test this.

She doesn't personally own gold, if one accepts her answer at face value.

Faber should have asked if she controlled, directly or indirectly, gold.

With a hedge fund hubbie, she'd know all about blind trusts and other legal structures that she (jointly or solely) can control an asset without owning anything.

Thu, 01/31/2013 - 15:11 | 3203411 FFox
FFox's picture

Oh my god, that was priceless!  A blatant example of the anti-gold, CNBC/JP Mrgan+ bankster hacks applying their orders in order to smack precious metals down after the big pop yesterday & overnight.

Maria Bitcharoma.... ultra elitest pglet!  Man it's becoming so obvious now it's beyond ZeroCred!

Go collect your check little piggy!  You're embarrasing your family!

So sayeth:  The Fox 

Thu, 01/31/2013 - 14:26 | 3203175 ebworthen
ebworthen's picture

I don't care if Gold is in a bubble.

It's mine, I hold it, and Corzine and Dimon can't steal it.

It's value is increased by the immoral conduct of central bankers and politicians.

I don't care if it loses half or more of it's value, it will still have value, and still be tangible; unlike the promises of harlots, politicians, and mammon lusters.

At the same time it allows me to not contribute my money to the LIE that is the market, the Wall Street Casino, the Washington D.C. cesspit.

Perfect if you ask me.

Thu, 01/31/2013 - 15:05 | 3203392 cifo
cifo's picture

Corzine will, if you leave it with him :)

Thu, 01/31/2013 - 14:18 | 3203160 Melson Nandela
Melson Nandela's picture

Who needs Gold ? Just short the Russell 2000 at 100X leverage for the killer trade.

Thu, 01/31/2013 - 14:17 | 3203154 Moe Howard
Moe Howard's picture

That lisping bitch is "well respected?" Where did they get that from? 

 

She's a pressitude. The world's third oldest profession.

Thu, 01/31/2013 - 14:29 | 3203204 ebworthen
ebworthen's picture

A pressitude?  What's that, an infobabe who only exchanges fondling and oral sex for exclusive interviews?

Thu, 01/31/2013 - 14:17 | 3203151 shovelhead
shovelhead's picture

We can fix this.

We have unlimited 0&1's.

Thu, 01/31/2013 - 14:12 | 3203120 Diplodicus Rex
Diplodicus Rex's picture

I need a bit of help here understanding the likes of Goldcore. Firstly they write a short article about an even shorter clip from CNBC where Faber insists that he owns gold as a hedge against global systemic faileure and the breakout of war(s). As it happens, I agree. I own precious as a hedge against collapse and as a way of keeping my money out of the hands of banks in the intervening time between now and the collapse. I most certainly do not hold gold as an "investment". An investment as far as I can tell is where you temporarily swap something of value under the belief that at a later date you will receive the the something back with something else on top for your trouble. The underlying principle is that the something you lent was returned to you at a later date with its value intact. It is also presumed that the something on top is also denominated in something valuable. If I believe that collapse is coming it means that I believe the value (purchasing power) of fiat is going to reduce very significantly.The last thing I would want is to swap it back at some later date for seriously devalued fiat. What would be the point?

 

Please tell me why I would be interested in the "price" of gold measured in fiat which, for the exact reason I own gold, I believe that, due to the collapse in purchasing power, the price in fiat is going to rise significantly? What I should be more interested in is the purchasing power of my gold when it comes to buying food or fuel or any other commodity that can't be printed out of thin air.

 

I don't understand the fixation of worrying about the fiat price of gold. If you rank all of the risks to your wealth, in order, the top of that list must be the collapse in purchasing power of fiat. If you hedged that risk by buying gold why would you then worry about the gold price expressed in terms of the said fiat?

 

Or are they just selling their book?

 

Thu, 01/31/2013 - 14:42 | 3203280 tango
tango's picture

The dollar may be fiat but it is not going to disappear instantly.  It is needed to purchase things like land, guns, seed, fuel, porn, etc.  In hard times folks will slowly refuse to take the greenback and a new currency - probably several - will emerge.  The two biggest benefits of money are the ease in purchasing and the determination of value, the goal of any economic system.  In this case, the fiat currency is determining the worth of gold and silver.

I've experienced a currency collapse once (russia) and the void was filled with competing currencies - dollar, franc, mark, pound, etc    Most good were priced in multiple currencies and no one seemed to have a problem.  

Thu, 01/31/2013 - 14:33 | 3203235 ebworthen
ebworthen's picture

Our society is so far down the rabbit hole of not understanding money that they must use fiat (dollars) as a measuring stick since people can't think in terms of a cord of wood, a mule, a bushel of corn anymore.

Pretty soon the tangible currency fiat will lose meaning, as younger generations will equate money with a swipe of their mobile device or EBT card and never handle money.

Then money will become that which is given by those who must be obeyed.

Thu, 01/31/2013 - 14:44 | 3203301 tango
tango's picture

I daresay someone from the 1800's would be surprised at the things we take for granted.  Money can be anything - even a card swipe - if it is trusted.  It doesn't even matter if it's backed up against anything as lost as folks believe in it.   I personally think currency should be PM as it once was where the intrinsic value of the coin equaled the amount of PM it contained.  (Thus the constant resizing of US coins in early years to account for changes in the gold to silver ratio)

Thu, 01/31/2013 - 13:45 | 3203017 Volaille de Bresse
Volaille de Bresse's picture

"5% of your portfolio in physical Gold will protect 5% of your portfolio"

 

Correct! That 5% applies to peacetime and we're in global economical war...

Thu, 01/31/2013 - 13:44 | 3203003 unrulian
unrulian's picture

edit....i posted about twenty posts down and i jumped to the top??? WTF

Thu, 01/31/2013 - 13:50 | 3203043 otto skorzeny
otto skorzeny's picture

no rhyme nor reason-just enjoy life at the top

Thu, 01/31/2013 - 13:35 | 3202987 Diamond Jim
Diamond Jim's picture

and down $22 this morning...... sorry dudes, I'll wait for a close over $1700. My account can wait and miss out on a small portion of the inevitable ride up as the Fed needs to print more.

Thu, 01/31/2013 - 15:14 | 3203421 tenpanhandle
tenpanhandle's picture

BTFD.  If you are actually going to buy physical PM's, why would you wait till they are more expensive.  At todays prices, you get a bottle of fine wine for every ounce purchased in comparison to buying after it crosses 1700 green pieces of paper.

Obviously your intent is to buy paper and on margin to boot.

Thu, 01/31/2013 - 13:41 | 3202997 otto skorzeny
otto skorzeny's picture

wait for the equity crash-paper GLD sold to cover margin calls-big old dip in PMs-you now down wid a discount-who's down w/ OPP? yeah you know me

Thu, 01/31/2013 - 13:34 | 3202983 azzhatter
azzhatter's picture

People confuse the paper gold traders with physical. Physical is a great long term investment. The paper boys just try to make a quick buck here and there

Thu, 01/31/2013 - 19:24 | 3204346 Arcturus
Arcturus's picture

Or as I do trade paper to accumulate physical with profits. Especially silver because of its volatility.

Thu, 01/31/2013 - 13:23 | 3202949 rehypothecator
rehypothecator's picture

Systemic risk is defined as "financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries". This is akin to the effect of the proverbial pebble when dropped in the pond, it ripples outward.

It's more like when a pebble is dropped on top of an avalanche-waiting-to-happen.  It does a lot more than merely "ripple outward."  Ripples get smaller as they go out.  Systemic risk doesn't attenuate as more institutions become involved. 

At some point, if the derivatives market expands enough, it will be more like dropping a pebble of U235, on a pile containing .9999 critical masses of the same stuff.  Not exactly "ripples" are to be expected.

 

Thu, 01/31/2013 - 13:17 | 3202912 agent default
agent default's picture

But, but, but, gold is backed by nothing.  The dollar has the backing of the US government and the Fed.  Foxnews said so.

Thu, 01/31/2013 - 14:21 | 3203169 Clowns on Acid
Clowns on Acid's picture

the Obama trolls are so obvious...

Thu, 01/31/2013 - 13:49 | 3203034 Middle_Finger_Market
Middle_Finger_Market's picture

Nation with food vs nation with gold. You want gold? You wanna eat? Supply and demand bitches inter commodity valued. 

Thu, 01/31/2013 - 13:17 | 3202921 RSBriggs
RSBriggs's picture

-1 - Foxnews - wrong....

Thu, 01/31/2013 - 13:23 | 3202943 Freddie
Freddie's picture

You are both idiots - ALL TV is shit along with Hollywood.  I bet you two serfs still watch their shit.  Fools.

Thu, 01/31/2013 - 14:57 | 3203330 akak
akak's picture

 

You are both idiots - ALL TV is shit along with Hollywood.

Except for "Here Comes Honey BooBoo", "Duck Dynasty" and "My Redneck Vacation".

Now THAT is some high-quality TV!

Thu, 01/31/2013 - 13:30 | 3202975 Al Huxley
Al Huxley's picture

I think you missed the sarcasm in the original post.  The hint was the 'But but but' that the sentence started with.

Thu, 01/31/2013 - 13:04 | 3202869 tango
tango's picture

Maria probably has lots of PM considering her opinions on central bankers, debt and the political situation.   In an off moment she was seen shaking her head after a failed interview with a "Democrat spokesperson" who said she would rather have higher tax rates and lower revenue than lower rates, slash deductions and higher revenue.  

Thu, 01/31/2013 - 13:28 | 3202963 TrumpXVI
TrumpXVI's picture

No question about it.  Maria has PMs.  She is way not as dumb as some people think.  And she's also not so dumb as to go around telling the entire world on TV that she has PMs..... "Oh, and by the way....my home address is, and the PMs are stored".......sheesh!

Thu, 01/31/2013 - 14:32 | 3203233 hawk nation
hawk nation's picture

Telling the truth is frowned apon in her profession and could lead to termination.

Everyone owns gold in the media and DC politicians. Its the old saying do as I say not as I do 

Thu, 01/31/2013 - 14:08 | 3203102 Midas
Midas's picture

I know when my co-worker asked me where to buy silver I said, "I have no idea."   And then I went home and felt up a few silver rounds, (not a euphemism).

Thu, 01/31/2013 - 13:22 | 3202937 Freddie
Freddie's picture

She was or is married to Saul Steinberg's kid Jonathan. No money worries there.

I knew a guy who's dad owned an NYSE seat.  Maria was a popular girl on wall street. 

 

Gold is a barbaric relic

Charlie Mungo - Buffet's friend.

Thu, 01/31/2013 - 13:13 | 3202896 FEDbuster
FEDbuster's picture

These talking heads are very limited in the investments they can make, however, physical gold and silver is very easy for them to buy with cash.   My guess is most of them have some coins stashed away for an unpredictable future.

Thu, 01/31/2013 - 13:16 | 3202916 RSBriggs
RSBriggs's picture

Why do you say that?  Do you have any IDEA of what these pravda regulars make?

Thu, 01/31/2013 - 14:29 | 3203205 tango
tango's picture

Yeah - high six figures (with perks like pick up and delivery) to seven figures (Maria, Larry, etc)  I dare say that even in NY they can afford a little silver.

Thu, 01/31/2013 - 11:59 | 3202568 wcvarones
wcvarones's picture

You can't fix stupid.

Even if you don't believe the doom hypothesis, why wouldn't you at least have a 5% allocation to gold for diversification?

Thu, 01/31/2013 - 13:28 | 3202968 Al Huxley
Al Huxley's picture

Because Warren and Charlie told me that it's a dumb investment, for pre-WWII jews who sew it into their clothes, and that I should instead trust the integrity of our transparent, fair, regulated capital markets and buy fine shares in fine quality companies like BAC and WFC?

Thu, 01/31/2013 - 13:04 | 3202867 Clint Liquor
Clint Liquor's picture

5% of your portfolio in physical Gold will protect 5% of your portfolio.

Thu, 01/31/2013 - 14:50 | 3203313 akak
akak's picture

 

5% of your portfolio in physical Gold will protect 5% of your portfolio.

But according to Kitco's official spokesman Jon Nadler, owning any more than that, at ANY time, automatically makes one a dangerous and disturbed "Radical Goldbug Extremist".

Ironic, that coming from a man who illegally fled a communist country with gold coins sewed into the lining of his coat. I guess what is good for the (pro-bankster) goose is NOT good for the (plebian) gander.

Thu, 01/31/2013 - 13:05 | 3202873 BandGap
BandGap's picture

I'm up to 35% in PMs and accelerating.

Fear is a great motivator.

Thu, 01/31/2013 - 13:50 | 3203039 The Juggernaut
The Juggernaut's picture

Farber then proceeded to show her his bullion bar.

Thu, 01/31/2013 - 14:35 | 3203249 hawk nation
hawk nation's picture

Did she comment on how hard or soft the gold was?

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