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Faber - “How Could You NOT Own Gold?”

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Today’s AM fix was USD 1,284.00, EUR 930.91 and GBP 771.26 per ounce.                      

Yesterday’s AM fix was USD 1,286.50, EUR 932.45 and GBP 772.67 per ounce.


Gold fell $2.80 or 0.22% yesterday to $1,280.50/oz. Silver rose $0.02 or 0.1% yesterday to $19.81/oz.

Webinar: Dr Marc Faber On Gold, Silver and Asset Allocation In An Uncertain World

This Friday, April 4th at 0900 BST, Dr Marc Faber will give insights into his strategies for protecting and growing wealth in 2014 and beyond. Register today and don't miss this opportunity to hear one of the world's most respected investment experts.


Dr Marc Faber and Jim Rickards at the World War D Conference in Melbourne

Gold climbed in London, its first rise in 3 days. It is believed that the seven week low will lead to renewed physical buying in China. Gold bullion of 99.99% purity for delivery in Shanghai traded at a premium to the London price earlier today, Bloomberg data showed. China was last year’s largest gold buyer and is already on course to surpass last years record demand.

Gold fell 3.2% in March due in large part to speculation that the Fed may reduce their massive monetary stimulus and return to more orthodox monetary policies. However, gold was  6.8% higher in the first quarter as many investors viewed the 28% sell off in 2013 as a buying opportunity.


Gold in U.S. Dollars - January 2011 To April 2014 (Thomson Reuters)

Geopolitical risk and the Ukraine crisis led to safe haven demand and may be leading to renewed central bank diversification into gold including from Russia itself.

Fed Chair Janet Yellen said in March that the central bank may end its bond-buying program this fall and increase borrowing costs six months after that. Yellen then changed her tune this week saying that the “considerable slack” in labor markets showed that accommodative policies will be needed for “some time.”


Faber: Gold “Is A Present From God And I Wish It Would Go Lower So I Could Buy More”
After a long first day of presentations at the
World War D conference in Melbourne, the international keynote speakers, Marc Faber, Jim Rickards, Richard Duncan and John Robb got up on the stage to answer questions on topics ranging from Bitcoin, to China’s economy to gold.

Faber said his concern about Bitcoin was how reliant it is on the internet and electricity networks functioning properly, something that can’t be taken for granted in the age of digital warfare.

Technology risk is something we have warned of for sometime. It shows the importance of not having all your savings and wealth in digital currencies in banks, in digital currencies like bitcoin and emerging crypto currencies or indeed in digital gold formats whereby you are very dependent on and exposed to websites, servers and technology in general.

World War D: Money, War and Survival in the Digital Age heard from Faber that gold, unlike digital assets, is a physical asset and that it had performed superbly until September 2011.

Faber said that gold has been in a correction since then, which isn’t unusual in a money printing environment. On gold at today’s prices, Faber said that “the fact is that gold down is a present from God and I wish it would go lower so I could buy more,” he said.

The big proviso Faber added was that he had to physically own coins and bars. He also warned that people would be ‘mad’ to own any asset, including gold, in the U.S. Previously, Faber has said that he favors owning gold in
fully allocated gold accounts in Singapore and Switzerland.

Jim Rickards said that gold should remain an essential part of diversified portfolios and Mark Faber pointed out that the question should be “how could you NOT own gold?”

The question echoes observations Faber made in January 2013, when he told a well known CNBC presenter that she was “in great danger because you don’t own any gold.” Before wittily reassuring her that she had “a golden personality.”

Webinar: Dr Marc Faber On Gold, Silver and Asset Allocation In An Uncertain World

This Friday only, April 4th, Dr Marc Faber will give insights into his strategies for protecting and growing wealth in 2014 and beyond. Register today and don't miss this opportunity to hear one of the world's most respected investment experts.

In this webinar, some of the topics covered with Dr Faber include:


Asian Century?
Western stagnation or collapse?
Implications of events in Ukraine
Allocations to precious metals?
How to own precious metals?
Dollar cost average or lump sum?
Take profits/ rebalance or buy and hold for long term?
When to sell?
Favoured asset allocation?
Other investment and business opportunities?

Dr Faber’s webinar takes place this Friday, April 4th, 2014, at 0900 BST (0900 British Standard Time or London and UK time). Register to attend the event or to receive a recording of the webinar.


 

 

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Wed, 04/02/2014 - 19:15 | 4619119 stiler
stiler's picture

Gold will always have value, collapse or not. You will retain your wealth and prob improve it substantially. But nothing like food in a crisis. 

Wed, 04/02/2014 - 15:53 | 4618448 Remington IV
Remington IV's picture

I'd rather own Bitcoins

Wed, 04/02/2014 - 17:28 | 4618780 weburke
weburke's picture

better to ride the HFT folks upward draft. 

Wed, 04/02/2014 - 15:53 | 4618446 dontgoforit
dontgoforit's picture

If there is a world-wide currency collapse, gold isn't going to get you much.

Wed, 04/02/2014 - 14:40 | 4618153 stopthejunk1
stopthejunk1's picture

The only thing you have to do to keep your gold safe is keep your goddam mouth shut.

The preppers that keep yapping about their stocks of this and that will be the first to be dragged off to room 101 or shot up against a wall.

If anybody knows you're a prepper, you're not.  This includes financial preppers, which are sometimes called "goldbugs."  Loose lips sink stashes.

Wed, 04/02/2014 - 14:39 | 4618138 Yardfarmer
Yardfarmer's picture

speaking simply as an american citizen watching this country's slow and inevitable descent into lawlessness brabarism and tyranny, if we have to depend on what these globalist eltitist plutocrats advise us, then we're already done for. faber may be an astute investor, suave raconteur, and charming fellow but he is but a comely degenerate operating in an international arena in the rarefied air of high finance where only an extreme minority .001% actually have any relevance or participation. Rickards of course with his CIA economic gaming pedigree and government connections is a left gatekeeper with high level security clearance especially given the fact that in his most recent book, he acknowledges insider trading concerning the massive put options on United Airlines prior to 9/11 were placed by the "terrorist" operatives, when it has been conclusively shown that such incredible malfeasance led to the highest levels of the CIA and executive director and Israeli agent. A.B. Krongard. the whole lot of these plutocrats including "Mr. Gold" Jim Sinclair are the rear guard of the very forces responsible for systemic breakdown of the international economic and financial system as much as they now pretend otherwise. the idea that these greedy filthy uber rich fat cats have anyone's interests in mind other than the aggrandizement of their their own insane and greedy acquisitiveness is pure fantasy.

Wed, 04/02/2014 - 15:57 | 4618468 Fuh Querada
Fuh Querada's picture

"we (the US) have over 8000 tons of gold"

JG Ricktards

 

Wed, 04/02/2014 - 16:39 | 4618635 are we there yet
are we there yet's picture

It has not been audited since president Eisenhower. If theh had it they would show it.

Wed, 04/02/2014 - 14:30 | 4618108 stopthejunk1
stopthejunk1's picture

"He also warned that people would be ‘mad’ to own any asset, including gold, in the U.S. Previously, Faber has said that he favors owning gold in fully allocated gold accounts in Singapore and Switzerland."

 

This is preposterously bad advice. Sure, put your gold in a place where you can't reach it!

How on earth is gold in Singapore going to help you escape this country when the Apocalypse starts?  And what other use is there for PM, except emergency spending?

Of course, plenty of nitwits are actually holding gold as an "investment"... but unless you're going to live for a thousand years, that's just a dumb idea.  In fact, even if you ARE going to live for a thousand years, it's still dumb.  

GOLD IS NOT AN INVESTMENT.  It is a bet against the petrodollar; it is insurance; it is a hedge; it is useful for spending when the lights go out and you need to buy gasoline to get to Mexico.  Gold is a short on civilization.  (Ironically, the winners will probably be killed by rioters before they can collect.)  Gold is a lot of things, but people that hold it in paper or in foreign invisible accounts or for speculative purposes are nitwits that deserve to lose their money, and probably will.

 

Wed, 04/02/2014 - 14:03 | 4617985 cynicalskeptic
cynicalskeptic's picture

I suspect that ANY substantial  supplies of gold ANYWHERE in the world will end up in the custody of national governments for 'safekeeping'.

Allocated, schmalocated, putting what you own with a pile of other people's gold ANYWHERE makes it a very attractive and easy to confiscate target.  

Wed, 04/02/2014 - 17:31 | 4618792 weburke
weburke's picture

havent seen that word "national" in years !  certainly not since clinton first term.

Wed, 04/02/2014 - 13:52 | 4617943 Conax
Conax's picture

Needing a vault to hold all my gold.. now there's a problem I wouldn't mind facing.

Wed, 04/02/2014 - 14:00 | 4617970 Evil Peanut
Evil Peanut's picture

I suppose mr Faber will be driving around during the appocalypse in a Brinks truck full of gold trying to find someone who will sell him food in exchange for some gold and getting turned down each time.

Wed, 04/02/2014 - 14:36 | 4618132 stopthejunk1
stopthejunk1's picture

In every other apocalypse, gold has had tremendous purchasing power.

During WWII, in Dresden *while the bombs were falling* you could sit at a table and be served a fine dinner including caviar and champagne, if you could pay in gold and diamonds.  And while you dined you could look out the window and watch your countrymen starve in the street.  Note also that Schindler did not bribe the Nazis with cash -- even dollars or pounds.  He used gold and diamonds.  If gold can buy the life of a Jew from an officer of the Third Reich, then it can buy any goddam thing in the world, at any time, ever.

Wealth survives everything -- even death, war, annihilation, apocalypses, everything.  This is why the extreme wealth inequality in the world is such a problem for stability.

If/when the apocalypse arrives, you will be able to buy anything with gold.  Unless you really think that for some reason, human nature has suddenly changed from what it's been for the last 5,000 years?

Wed, 04/02/2014 - 15:56 | 4618456 Evil Peanut
Evil Peanut's picture

Perceived value vs real value are two different things.

To you perhpas a bar of gold is worth a lot of money but to me it is not worth anything.

Wealth does not survive everything. Your wealth has no value or interest to me personally because it has no use in a daily survival situation where you are trying to sustain your physical and mental well being.

Something has value for only so long as someone thinks does and not everyone will give two shits how much gold you want to pay them for a meal when SHTF. Get out in the field and earn it with your sweat.

Wed, 04/02/2014 - 18:23 | 4618935 logicalman
logicalman's picture

metal......

better than paper.

Unless you are using it to wipe your arse.

Food is, of course, more important, but as the old saying goes, don't put all your eggs in one basket.

skills and fitness are vastly overlooked too.

 

Wed, 04/02/2014 - 14:38 | 4618154 Yardfarmer
Yardfarmer's picture

 "in Dresden *while the bombs were falling* you could sit at a table and be served a dinner including caviar and champagne"

quite the romantic notion, that. sounds a bit far fetched without a deep underground bunker in the company of some very unsavory companions.

Wed, 04/02/2014 - 15:49 | 4618423 Latitude25
Latitude25's picture

And even then the firestorm probably would have sucked all the oxygen from your bunker.

Wed, 04/02/2014 - 13:02 | 4617744 RaceToTheBottom
RaceToTheBottom's picture

For Americans, owning gold in allocated accounts in Switzerland is not really much different than owning them in American banks.  Not sure about Singapore.

Wed, 04/02/2014 - 16:38 | 4618615 Tinky
Tinky's picture

That's utter nonsense. There are private vaults that are nothing like holding PMs in any bank.

Wed, 04/02/2014 - 17:51 | 4618839 RaceToTheBottom
RaceToTheBottom's picture

OOOPPPS, maybe I should have made my post a question. 

If the US wants to confiscate GOLD, you don't think that the existing paperwork and agreements re taxible income give them the same ability to confiscate Gold? 

That was my thinking.  But apparently you think I am wrong, which I could very possibly be. 

Please expand on your post, sir.

Wed, 04/02/2014 - 18:27 | 4618940 Tinky
Tinky's picture

Taxation is the only route that the U.S. government would take should it choose to take extreme measures re: gold. Were they to do that, all American holders of gold would face the same problem, and where it is stored would be largely irrelevant.

Holding PMs in banks is sheer idiocy for other obvious reasons, not least of which is that they could go bankrupt at any time and the assets of individuals would be at high risk. That risk is virtually non-existent in the best of the independent vaults. There are other advantages (over personal storage) as well.

Wed, 04/02/2014 - 13:08 | 4617762 Citxmech
Citxmech's picture

IDK - If I could afford enough gold to require the services of a private vault - I could probably afford to build my own.

Wed, 04/02/2014 - 20:56 | 4619526 fedupwhiteguy
fedupwhiteguy's picture

Why build when the smallest box is so inexpensive. The smallest box at the following facility is $10/year!!!! That's right. Ten bucks baby.

 

http://www.securityvaultinc.com/

Wed, 04/02/2014 - 21:44 | 4619659 mccvilb
mccvilb's picture

I'm telling you, melt it down into a cubic foot block, paint it black and use it as a door stop. At just a little over 1200 lbs who's going to steal it? Of course first you'll need 25 million's worth of O Zees.

Wed, 04/02/2014 - 12:54 | 4617719 Latitude25
Latitude25's picture

So Faber thinks that US gold owners should rely on being able to fly to Asia or some other distant place to take posession of their gold when an economic meltdown occurs?  That seems pretty unreliable to me.  Also so many of these supposed bastions of tax refuge have rolled over and succumbed to the IRS.  Why wouldn't they do that with your gold?

Wed, 04/02/2014 - 16:31 | 4618610 Tinky
Tinky's picture

The U.S. will prevent people from flying abroad? Please.

It is the banks that have rolled over, and there is zero chance that the U.S. will be able to confiscate PMs from private vaults in places like Switzerland and Singapore.

Wed, 04/02/2014 - 14:22 | 4618087 ejmoosa
ejmoosa's picture

If you go overseas to get it because of a meltdown, you'll never be able to bring it back to the states.

 

They'll confiscate it upon landing....

Wed, 04/02/2014 - 12:51 | 4617703 Bullwinkle Moose
Bullwinkle Moose's picture

There"s nothing like picking it up and rubbing it between your fingers.

Wed, 04/02/2014 - 12:16 | 4617576 Tao 4 the Show
Tao 4 the Show's picture

And said accounts will always be "fully allocated". The only question is "to who"?

Wed, 04/02/2014 - 12:47 | 4617686 CHX
CHX's picture

Fully allocated to someone, IF there is somethig real in them, i.e.

Wed, 04/02/2014 - 14:26 | 4618105 Thisson
Thisson's picture

It might be better to think of them as "pre-allocated" - they already know who the gold will be allocated to (them!).

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