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Mark Faber Fears "Stocks Could Be Dead Money For A While" But "Gold Has Bottomed"
"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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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.
The Global Economic and Financial Control Matrix Disintegrating in Real Time
http://cosmicconvergence.org/?p=2973
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
The welfare girls go EBT EB T T T T T EBT.....
+69
Very apropos!!
DaddyO
to be classified TBTF, unlike LOU, you have to move up to AAA class!
Peace on Velvet Underground leader.
Wasn't Marc Faber just recently saying gold could go to $600 or was that Jim Rogers?
Td. Site hacked by polish folks?
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
That was Rogers covering all bases. Hell, gold could go to $900. No great revelation there.
maybe the chinese gold frenzy has convinced him otherwise.
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.
Thank you, brother. And keep that towel on, for the children.
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.
@team depends - omg, thanks man. Laughing, crying...
The system is going to blow up in their faces at some point. QE to infinity is here to stay.
http://marcfabersblog.blogspot.ca/
The thing is that they will not allow the vault to get empty. Watch when cash settlements are put into effect.
They're not paying out GLD holders, they're using the inventory to settle other obligations.
Other obligations as in 'to meet sovereign bullion demand' or what are you refering to
Yeah.
Scary thought. Looks like we're going back to the dark ages.
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.
Al H
Are you quoting fofoa or just paraphrasing him.
<Gold bottom in
<Not yet
<-- 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?
Its between some thai girl's legz...
Hey, where ya been, Hulk?
Marc lives in Thailand. Girl's legs?
Between Thai thighs !!!
In Phuket?
Chang Mai up North
Hulk. can I come too?
Lurking Chumba. For the most part, I got nothing more to add...
I can appreciate the sentiment. Call me.
+1 HULK She go boom boom long time..............Dr. Doom same same all the time.
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.
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.
"But, I have these GLD certificates!"
"Read the fine print, sir. Here are your Ferns. Next!"
"But, I have these Fern Certificates!"
"Read the fine print. Here is your shit sandwich, sir. Next!"
If you can't hold...oh nevermind.
DaddyO
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
Faber....Hey I thought you said the S&Ps high this year was 1718?
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.
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."
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
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
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
Faber sells tickets - he has become the consumate showman. Put him on the stage with Russell Brand, and pay the pair in Bitcoins.
Aren't bitcoins losing some luster?
There's about $29mm of them about to hit the market at auction, no?
DaddyO
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.
According to a cyclical commodity model, http://econocasts.blogspot.com/2013/10/20131011-gold-cycle-chart.htmlgold is in a corrective range until early 2014, where it starts a long multi-year rise to $3000.
Thanks! Cyclical commodity models are always my first choice for predicting markets that have been distorted beyond recognition through manipulation.
As long as there are those who think TA still has merits, the FED is in the clear.
DaddyO
I called the bottom at 1200. but that didnt stop me from losing money during the slam downs.. GRRR Sure enough though right after options expire, up goes gold and miners to exactly where I was hoping theyd be a few days before.
It was a Barrons 'standing' interview, which seems like they are semi-interested in what Marc has to say.
Have not seen Dr. Faber on Barrons before so I think that is a little significant.
Agree the bottom is probably in on Gold since there will be increased money printing in 2014.
Marc Faber has been on Barrons for at least 20 years....
Yes you are correct. He was a director at Drexel from '78 to 1990 in Hong Kong. So yes he has been on Barrons over the years.
When I look for previous Barrons interviews or Roundtables online I can only see a few since 2009, and not before that time.
Interesing they are interviewing him now, and not too many times before 2009 (if any), at least online.
That's the spirit Marc :)
Gold is going lower before higher. http://imageshack.com/scaled/large/820/eqdg.png. I'll be loading up when it does. ;-)
Agreed. The current western powers will let it go down to $250 again if they can, before all is said and done. I don't give a shit about the GLD anymore, I just want to cozy up to it in my bed.
Did someone say they needed help knocking the bottom out of it? ...Look into naked shorts..
I don't get why are Sprott / Faber, etc. making date-specific market predictions when we have no real markets / price discovery? Just setting themselves up for failure - doesn't Sprott remember his "Silver at $50 by the end of 2012" call in early / mid 2012?
ooops. pslv is doing good now though. looks like some bi-metalist (mentalist?) got caught pushing paper again. "levered up a thousand to one" no doubt. be interesting to say how he's playing the loonie here. electric cars are compounding sales at 200% a year. by my math that means the end of ICE in just three years insofar as North America is concerned. if course the stock's pushing this scenario are up 500 percent ytd so I might have to revise and extend that math. I mean 8 bucks a gallon for fuel in Europe? that energy market could collapse on Monday. thank goodness they can't do math over there...
Ummm yeah....
http://www.zerohedge.com/news/marc-faber-sees-100-probability-global-recession-2013
and...(note the date): http://www.zerohedge.com/news/marc-faber-i-have-very-special-stock-tip-you-symbol-g-o-l-d
LOL
Thanks for the links, but...imo, NO ONE on the planet knows when gold hits bottom...though economists cannot help themselves sometimes - even great ones like Marc Faber, Peter Schiff, etc..
But the fundamentals he espouses are rock solid and I challenge you to factually prove they are not.
There should not be any doubt about the breakout of gold prices against the major fiat currencies in the near future, but I think Mr.Faber is once again underestimating the power of flim flam, the great propaganda machines, and overestimating the ability of people to break their faith in the mass delusion of fiat money.
These people in power don't fucking care what anyone thinks or how it looks. They can print $323 billion in one day without sweating. They tell other G10 nations to fuck off when they demand their (evaporated) gold. A million articles online about QE driven markets, wealth transfers from the poor and middle classes to the ultra wealthy, the laughably transparent daily fudged up economic data, the hidden tsunami of offbook derivatives in almost all the financial institutions, the unfunded liabilities of future obligations, and the deep ingrained corruption of corporatism in both political parties and civil service infrastructures. They don't fucking care about any of it, because nobody can challenge them. And so far they have been right about that.
We all know how easy it would be for the government to turn gold investors into social pariahs if we're lucky, and shady terrorists if we're not. There's one government narrative that has been consistent over the past few years, and it's, "We can do whatever we want, we're American and we're exceptional". When they eventually have to deal with social unrest as prices rise even beyond the scope of the ebt undead, the gloves will come off, and those billions of rounds they've been hoarding will fly among the predator drones.
I don't want to be melodramatic, but the longer this goes on with the reserve currency, the bigger the collapse it will be. I no longer make decisions on investment opportunities alone - I make decisions on surviving the coming correction when the rest of the sheep realise how they were conned by the banker-politicians.