Mark Faber Fears "Stocks Could Be Dead Money For A While" But "Gold Has Bottomed"

Tyler Durden's picture

"Since September 2011's $1921 peak, gold has been in correction mode," Mark Faber tells Barrons in this brief clip, but the overhwleminly bearish sentiment combined with the major accumulation (most notably by China) means "gold prices have probably bottomed," and some gold mining stocks are well positioned. While Faber has recently expressed concern at the potential for a major correction in stocks, he notes that there are pockets of value worth investigating including European Telcos and Indo-China travel-related stocks. However, the Gloom, Boom & Doom report writer warns that "stocks could be dead money for a while."

 

On Gold and Gold Miners:

Gold peaked at $1,921 an ounce in September 2011. Since then, it has been in a correction mode. Sentiment is bearish, but some countries are accumulating gold, notably China, which will buy an estimated 2,600 tons this year, exceeding annual production. Prices probably are bottoming.

 

Gold-mining shares aren't expensive either, although many exploration companies won't make it. If you buy the miners, look for companies that have raised capital already or have sufficient reserves. They are best-positioned to survive the next few years if there is no upturn in the gold price.

Full Barrons' Interview below:

 

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Al Huxley's picture

GLD Inventory is now dropping even when the price rises.  Down to 872 tons now.  Seems to me like this is the last big vault for the bullion banks to clean out, dropping around 10 - 30 tons/month... when it's gone the game will be over.

Truthseeker2's picture

The Global Economic and Financial Control Matrix Disintegrating in Real Time

http://cosmicconvergence.org/?p=2973

DaddyO's picture

OT: For those old enough to remember him, Lou Reed dead at 71...

May he rest in peace!

Walk on the wildside was the unofficial song of my graduating class in HS.

Our unofficial class color was Pussy Passion Pink.

If it was worth doing, it was worth doing to excess was the unofficial class motto.

Lou Reed and artists like him fueled a whole generation of drug induced, alcoholic euphoria.

Some of us survived and returned to reality, many through AA, myself included.

Anyways, sorry for the hijack...

DaddyO

TeamDepends's picture

The welfare girls go EBT EB T T T T T EBT.....

DaddyO's picture

+69

Very apropos!!

DaddyO

falak pema's picture

to be classified TBTF, unlike LOU, you have to move up to AAA class!

Peace on Velvet Underground leader.

flacon's picture

Wasn't Marc Faber just recently saying gold could go to $600 or was that Jim Rogers?

max2205's picture

Td. Site hacked by polish folks?

TwoShortPlanks's picture

First Rule of Bankruptcy: When faced with certain Bankruptcy and subsequent Liquidation of assets, transfer all good assets and equity into a newly created entity, and hang the creditors with the toxic assets and debt of the old.

China’s Bretton coup d'état: http://twoshortplanksunplugged.blogspot.com.au/2013/10/chinas-bretton-coup-detat.html

greatbeard's picture

That was Rogers covering all bases.  Hell, gold could go to $900.  No great revelation there.

falak pema's picture

maybe the chinese gold frenzy has convinced him otherwise.

Angus McHugepenis's picture

TeamDepends: Had to log in just to say +1 gazzilion!! I'm still laughing so hard I think I just shit my pancreas. And I got to green you for lucky 13.

TeamDepends's picture

Thank you, brother.  And keep that towel on, for the children.

Angus McHugepenis's picture

No worries. The towel is just a formality. it's the belly that is the showpiece. When you have a tool the size of mine you have to put a shed over it.

lewy14's picture

@team depends - omg, thanks man. Laughing, crying... 

Silver Bug's picture

The system is going to blow up in their faces at some point. QE to infinity is here to stay.

 

http://marcfabersblog.blogspot.ca/

GVB's picture

The thing is that they will not allow the vault to get empty. Watch when cash settlements are put into effect.

Al Huxley's picture

They're not paying out GLD holders, they're using the inventory to settle other obligations.

GVB's picture

Other obligations as in 'to meet sovereign bullion demand' or what are you refering to

GVB's picture

Scary thought. Looks like we're going back to the dark ages. 

El Tuco's picture

They can create an endless amount of physical by just spray painting tungsten a gold color. As long as it sits in vaults(someones vault), don't worry be happy.

lasvegaspersona's picture

Al H

Are you quoting fofoa or just paraphrasing him.

TeamDepends's picture

<Gold bottom in

<Not yet

chumbawamba's picture

<-- This interview was an opportunity for Marc to plug his favorite stocks.

<-- Marc's cute accent and ponytail aren't enough to give him a pass anymore...where's the fucking beef?

Hulk's picture

Its between some thai girl's legz...

chumbawamba's picture

Hey, where ya been, Hulk?

knukles's picture

Marc lives in Thailand.  Girl's legs?

Hulk's picture

Lurking Chumba. For the most part, I got nothing more to add...

chumbawamba's picture

I can appreciate the sentiment.  Call me.

NIHILIST CIPHER's picture

+1 HULK          She go boom boom long time..............Dr. Doom same same all the time.

giggler321's picture

See now; I like Mark he tells a tale we all know but he never called top and drop when it fell to the 1300's and in interview with turk he even suggests he should have probably talked about it and just said a correction was due (after fact).  In reality, nothing has changed, since we can at least say that, there is no need to call bottom now either.  When you project a line back to 2007/8 spot at 1000$, it would be easy if there was a recovery.  Just because it costs some Canadian's 1300+ an oz to produce in west, does not mean it will not bottom lower with them stopping production, after all the excess yellow has to be coming from central banks, they have an agenda and it does not include miners.

Running On Bingo Fuel's picture

Lookie here now; I for one hope for a strong bottom at $300. I have just $300 left to buy one more ounce until my next paycheck from Walmart next month.

Make it happen.

Over.

lakecity55's picture

"But, I have these GLD certificates!"

"Read the fine print, sir. Here are your Ferns. Next!"

TeamDepends's picture

"But, I have these Fern Certificates!"

"Read the fine print.  Here is your shit sandwich, sir.  Next!"

DaddyO's picture

If you can't hold...oh nevermind.

DaddyO

knukles's picture

OMG!  This shit sandwich is still soft and warm!  Gross!

If you don't wanna hold it let your pal hold it for you until you're hungry.

You didn't make that shit sandwich all on your own.  The bread is cannned federal surplus.
Obie 2016

6th of May's picture

Faber....Hey I thought you said the S&Ps high this year was 1718?

CrashisOptimistic's picture

There is no S&P.

There are CFOs seeing grabbable 0% short term money and using to buyback shares.  This way a flat to falling topline can look like growing Earnings/Share -- because the denominator shrinks.  ZH has already covered this.  Share buybacks with 0% short term rollable is how the party was kept going when they ran out of people to fire (awaiting the next wave of robots to fire more).

There is no market.  There is no economy.  There is only $85 billion/month at 0%.  When it stops, so does the world.

Sufiy's picture

And those who are shorting it in a serious trouble. The System attacks Andrew Maguire and GATA, who have exposed Gold & Silver manipulations by JPMorgan And Goldman Sachs - they must be really desperate. If you care support the case and spread the news:


Dirty Deeds Done Dirt Cheap: Who is the Real Fraud - Andrew Maguire or Jeffrey Christian?

The ongoing war between the corrupt financial system and people still standing for the real human values will include all form of deception and treachery, we will judge all the involved by their deeds and not just words.
   We know what Andrew Maguire is doing now - he is exposing the fraudulent Fractional Reserve Gold System at LBMA and ongoing manipulations in Gold and Silver markets.

 We know what Jeffrey Christian is doing - he is attacking GATA and Andrew Maguire now in order to put all idea about Gold Market Manipulation under question mark.   Our heart lies more with people like Matt Taibbi and Andrew Maguire here and we hope that baseless allegations will be met with facts by Andrew next week.

 Maybe it is just because Jeffrey Christian is part of the fraudulent system going as far back as to Goldman Sachs? Who are you really Jeffrey Christian? From CPM website:

http://sufiy.blogspot.co.uk/2013/10/who-is-real-fraud-andrew-maguire-or.html#


Andrew Maguire: Gold Smashdown, FED Defends The Dollar And How Goldman Sachs Operates. GLD, MUX, TNR.v, GDX

"Andrew Maguire presents to us the chronicles of ongoing war behind the curtain with FED defending the US Dollar at the crucial level 80.00 and how the FED's #1 Gold Prime Dealer Goldman Sachs operates in the Gold market. Now we have more information on why Goldman Sachs has issued the Sell Call on Gold last Wednesday. 

   All these revelations will never lead to the higher Gold prices without Buyers and one can argue that this manipulation can go forever. According to the Andrew Maguire the key crucial difference now is that Central Banks are buying and, particularly, China is taking all available Gold for physical delivery now."

Abi Normal's picture

It still has a bit to go yet, the CBs have not finished with it yet.  I think this piece is a sellout?  Pockets?  Did he really say that?  Pfffft, the patient is all but braindead, and being kept alive by the QE out of thin air, digitization of of 0's and 1's to infinity?!

A couple of weeks ago he was talking about a major correction?  A crash...you see anyone who prognosticates also guesses, myself included.

This will not end well, and we all know that my friends, even the downvote troll who seems to have attached themselves to, knows the game is all but over, they are re-arranging deck chairs on the Titanic.  ROFLMAO

DaddyO's picture

Can you say LifeChangesBeReady? If you live in the Deep South or Florida, this event may help you get started preparing if you haven't already done so.

I have been getting ready since my eyes were ripped open in the late '90's.

I think I OD'd on the red pills.

DaddyO

falak pema's picture

Midas had the golden touch but  Croesus's had the Pactolus in Phyrgia. Thats when it all began the first golden coin in West.

The Persians and the Greeks fought for its heritage until Rome said "its all mine to pay for spice and silk".

Meanwhile India and China were rolling in gold as was Africa. Poor Europe was short of Gold but had Silver.

That's why the West has cherished gold; it always belonged to others. So conquests allowed them to seize the gold mines of Mali and Pontus and then buy with it grain, spice, silk and precious stones.

Now we've lost our way trying to buy arabian oil with fiat. 

Time for the East to tell West : You are now toast as we have refound the Pactolus. 

For the West to achieve freedom anew they have to follow Apollo and harness the Sun.

Get with it! And leave gold to the gold diggers. Midas never ruled the world or found the golden ratio; as exemplified by the Acropolis. 

Its just a century of change and we have burnt our bridges to the past paradigm. So forward ho! 

An Asian view of emerging multilateral NWO : http://www.asianage.com/columnists/new-power-triangle-402

Iam Yue2's picture

Faber sells tickets - he has become the consumate showman. Put him on the stage with Russell Brand, and pay the pair in Bitcoins.

DaddyO's picture

Aren't bitcoins losing some luster?

There's about $29mm of them about to hit the market at auction, no?

DaddyO

Exponere Mendaces's picture

This will be the biggest "Firesale" event ever. The amount of return on a sudden sale will be enormous, given the past attitudes of "give me some cheap coins".

Contrary to some thinking this will "ruin" Bitcoin, it will single-handedly enable wealth transfer to those that need it most, and rightfully so.