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Marc Faber On Gold 'Bugs' And Equity 'Cockroaches'
As he said all along "investors should have some exposure to gold" and Marc Faber has been adding recently as gold (and gold stocks) are so much cheaper than over-inflated stocks. Faber holds around 25% of his assets in gold becaquse he believes eventually the monetary policies of central banks will lead to a further loss of purchasing power in the value of paper money. The CNBC anchor is perturbed as the market is selling gold and buying stocks; to which Faber rebuffs; investors are shunning gold "because the media doesn't like gold, nobody at CNBC owns gold. Nobody at Bloomberg owns gold. Gold is being constantly talked down by the media, and Fed officials, and economists, who also don't own any gold. They're all stocked up in equities." "When people talk about people who are optimistic about gold, they call them 'gold bugs.' A bug is an insect. I don't call equity bulls 'cockroaches.' Do you understand? There is already a negative connotation with the expression of 'gold bug.'"
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I'll admit it I am a bug. There I did it. I feel better.
You fool!!!
Didn't you hear the slut declare that gold has had its "demise"? In all her infinite wisdom she knows that gold is dead. With her extensive background and decades of experience and market savvy she pronounced gold's swan song. You heard it on CNBS first!
Her face looks like a kicked in bird cage.
She made his point brilliantly by being so defiant early and often.
Exposure to physical gold is important. I personally do not hold any near 25% in gold, but everyone should have 5% or more of their net wealth in gold. Common sense.
And just in case...
Getting fussy over a term that originated with Edgar Allan Poe's 1843 story "The Gold Bug" is curious.
In Poe's story the bite of the "gold bug" indirectly leads the bitten protagonist to vast wealth in the form of buried gold (and jewels) treasure.
The "bug" in Poe's story is suggested to be a scarab beetle.
In ancient Egypt the scarab beetle was the symbol of the Egyptian god Khepri. Khepri was an incarnation of the sun god Ra, but Khepri was specifically connected with the rising/morning sun.
Don't fight the term, appropriate it. Get a gold scarab lapel pin, tie tack, ring, whatever and wear it proudly.
It may not be morning in America, but the sun rarely goes fully below the horizon for those that hold gold.
I got tired of my buddies calling me a 'bug'. So, I started calling them 'Stocksuckers'. They don't much like that.
She's a snide little idiot. ("So you're saying that CNBC is driving down the price of gold?" Just STFU!)
I forget her name (thankfully), but I remember that I couldn't stand her for even one minute since her first day on the job. In fact, she was the final straw that broke the camel's back and caused me to turn CNBC off for good and never go back.
"Faber holds around 25% of his assets in gold...."
What a wuss. I hold about 50% in AU and AG.
"Buying physical since 1981"
The rest in foil no doubt. War and conflict everywhere CB's on a print fest. Gold and Silver lay there like a fat dog in the sun.
Get out while you can.
The fat dog is basking in the sun...conserving calories...while he his planning to take a shit on your lawn.
We had a Beagle named "Sugar" when I was a kid that did that.
She also was planning her route on Trash Day to knock over Cans and eat like high heaven.
Sure. Of course my cost basis is such that it has outpaced the S&P 500 by a country mile. I do have an exit strategy however. It's called the failure of the USD.
People of earth,
Listen to lickspitler. The only way to get ahead is to sell low and buy high. Gold is low now, sell immediately. Stocks are repeatedly hitting all time highs so the time to buy is right the hell now. Don't miss out, this might be your last chance to catch the train to suckers-holding-the-bag-town.
I smell Troll
The media and friends like to use time as a reason to demean gold because the madness has lasted longer than Faber and company could have ever imagined. Still does not mean they are wrong.
John 3:16
+ infinity
Faber should have added
"and this bias and absence of gold holdings by you and your colleagues will lead us one day to wake up and realise that the vaults of the west are totally empty, and that all the gold has shifted to more populous and productive parts of the world who will not be inclined to give it back to us without adequate compensation, for which massively overvalued equities will not suffice"
I smell Long and Wrong.
I bought at 360 and 5. Funny, it just feels so right.
You should have stopped at "I smell"
I have about 300 pounds of nickels. (By my estimate, Kyle Bass's million dollars' worth of nickels would fill a large bedroom, wall to wall, floor to ceiling - that is, if the floor didn't collapse.)
Someday, a hundred nickels will buy you a much needed loaf of bread.
At least Bugs float when the boat sinks.....
Having such a clueless moron on TV asking stupid questionS is a big insult! Why Marc even bother with these clowns?
Marc goes on CNBC & Bloomberg for a few reasons.
First, he finds it entertaining to chat with these clowns. He enjoys it when they ask stupid question, because he can say wild things on TV and watch their reactions.
Next, he likes to chat up all the young ladies. There have been a number of time when his flirting has been blatant. Its another form of entertainment for him.
He's rich enough that he doesn't care what they think.
I find him entertaining also. Kinda like listening to George Carlin.
It's the one that says, "Bad Mother Fucker"
They invite Marc because he is never boring, unlike other guests. I too enjoy his flirting. He once appeared to be actually halfway hitting on Maria Bartiromo. I do think "stockroaches" would be a more fun term.
He is a total media pro and knows how to play the game. He has one or two simple messages and only waits to shoot an excellent and funny preprepared killer phrase into their cameras at the right moment.
In this interview, the very slow speaking about the ridiculing of gold bugs shows how well he plays the game. Everyone listens even more carefully and then BOOM: Equity cockroaches!
ROFL!
I'm sure, he will have an excellent laugh, when he watches it here on ZH and sees, how these poor idiots quickly were ordered to cut him off.
He reminds me a bit of a king's jester. They were the only persons who could smash the whole truth directly and disrespectfully into the king's face. And often enough they were the ones, who were the only ones who were honest and showed the king, what people really think about him and how his advisors were lying at him.
Just as long as you understand that he has become an entertainer...
You wouldn't look to real investment advice from a stand up comic would you? Same applies to Faber....
I actually upvoted you Flak. Game, Set, and Match to the central bankers... after 6 years of printing they have achieved their Nirvana... no need to turn on bloomberg or CNBC in the am, everything is fixed!
They haven't won, they just postponed the next "day of reckoning". To what end I don't know....
So lay back and enjoy it, or so I have been told, as these will be known as the "good ol'days" soon enough, even as bad as they seem now...
PS I'll take Tom Keene over anyone on CNBC....
You obviously have no clue about his investment philosophy and recommendations.
I've been following Faber for well on 25 years, from a time when he was a regular on the Barron's Quarterly Roundtables.
He ain't that kind of guy anymore, and I ain't shelling out for his newsletter...
Haha..... Every now and again Faber throws out a zinger or two. "equity cockroaches"... Classic!
I bet he can deliver his lines without a teleprompter too.
I think "equity cockroack" is a rather polite term.
I prefer "ponzi whore" myself.
Equity leeches is more appropriate as they leech the profits from a public company and they leech from the public treasury from taxpayer funded Quantitative Easing.
If only he could step on them. He wants to. We want him to. It would be for the good of all. Normalization, and all.
Never step on a cockroach! Their eggs get on your shoes and then you walk in your house and you're infested
the rub is Gold really doesn't get the benefit of inflation, its stuck attached to wages of the masses sa sthey are the primary consumers and as they get more eduicated gold becomes less important (unless you're a central banker) , equities, they drive inflation inflation is what they are, a bet on equities is a bet on inflation, equities are the levered owners of what you buy every day, their earnings are tied to inflation.
There will be a huge currency crisis down the line and all the paper currency will go down the drain no matter how "educated" you are. Tell me again, how much is gold worth in Confederate Dollars?
Well just check ebay confederat dollars are worth much more in US dollars these days. I think it's a scarcity thing. And they are backed by the same. Nothing
The best thing about gold is that nobody knows you have it. Do they?
Sure wish I had some.
Yes, stocks will go up in an inflation. This is what happened in Weimar Germany in 1923. However, while stocks went up 500,000%, inflation went up 1,000,000%. In other words, stocks did not keep up with inflation, but gold did.
Not quite, at first german stocks underperformed, but they made it up. I have read a number of analyses that came to the same concluion, here is merely the latest:
http://www.businessinsider.com/heres-what-happened-to-stocks-during-the-...
Now, in all fairness, the german stockmarket of the Weimar Republic was mainly real asset based stuff, steel, chemicals etc... and not high P/B companies like FB or retail like AMZN etc..
Nowadays Cos. like DD, UNP, MO, ED, SO and maybe INTC will whether any storm except, obviously, complete and utter collapse...
That was beautiful.
The bugs will survive the financial nuclear meltdown. The bulls will go extinct.
and if you stack it right, a real one too.
Gold exists.
Derivitives don't.
Paper promises are worth paper.
Simple, really.
Ha! Who gives a rat's ass WHAT these folks think of gold?
You don't buy gold to impress the "cool kids". You buy it because you know that the cool kids are really assholes, and you take advantage of their stupidity to buy it at discount prices FROM them...you give them the colorful paper with the pretty pictures that they seem to like, it's almost like trading colored beads with the Indians for God's sake...
Anyone who has done even a cursory reading of history will see that EVERY major important power has had an economy that has valued gold. This goes back thousands of years, and only PM's have been able to segue successfully between economies over time.
On the other hand, ALL fiat currencies have failed. A 100% failure rate, whenever it is tried. Not a single fiat currency from the past will buy you anything...its only value is as a collectible from the past, to those who value such things and are willing to pay REAL money for them...
who did the interview--the female who said golds demise? That there says it all. 5000 years of gold working, and a brain dead bought and paid for anchor said the demise of gold.
not to mention that golds performance since 2000 outstrips the S&P, expecially when pulling out the 23% decline in dollar since 2000.
Funny that they still think investors are truly shunning gold when the market is manipulated by bogus future contracts sells that hold zero intention of actually fulfilling a real delivery. One can only wonder what it would be like in a world where physical assets actually exchanged hands and the prices were determined by voluntary cooperation between market participants.
Keep Shanghai Gold Exchange on your radar.
The market for gold is what it is. Every asset gets some sort of treatment, favorable or unfavorable, from government policies that change from time to time. We all believe that someday the negatative treatment gold currently gets will be reversed because its intrinsic value will show up when the government setting those negative policies buries itself. But it doesnt require that things go that far. As long as there are other people in this big world of ours who value the metal it remains a legitimate place to invest your money. And i see zero chance of that changing for the forseeable future. I've stopped worrying about the short term. Gold is not a beanie baby.
Here in Asia, gold rules
RE
No, they own gold......they just dont tell anybody and then go ahead and recommend stocks; then they get the sign from third to hold up as markets dive, and then they make double the profit.
It really *is* that simple to figure out once you remove yourself from the BS.
I'm not giving a shit about what Faber says anymore. He is one of those guys who gives play by play commentary as the world falls under the control of evil mofo globalist. Big help there amigo. Thanks for not naming names and all. Back atcha.
Equity cucarachas. Has a nice ring to it.
This retard female incrediibily stupid reporter is a big insult to the public. But then again, which blind government & media slave isn't? You give them some money and they play te whore all along.
Stupid MSM reporter is an oxymoron.
I think you mean it's redundant...unless you think all reporters are geniuses.
IF Gold is so despised why do the Germans not ask for infinitely rehypothecatable US Treasuries in lieu of their Gold?
WHY sould ANY Central Bank hold Gold if the Printing Press can conquer ALL?
Problem is that the printer can conquer all .....
Until one day it can't.
That's when the 'fun' will really start.
Did anyone notice that the gold chart had a negative 8% 1 year percentage on the top right hand corner and the Dow chart was shown with a 344% postive in a 20 year time frame?
Nothing like apples and oranges. Or bugs and cockroaches.
I can not see the chart but know what you mean, I've saw it before. Thank you for noting this as it my Open some eyes to what they are looking at.
LOL @ "equity cockroaches."
The American Media is an Enemy of The American People
American media serve their masters: corporations and government.
I think what should be asked is not gold versus equities but gold versus debt.
Equities are a risk asset...you snooze you lose. Debt on the other hand is not. If that market gets nuked then obviously gold is a huge winner.
I still think the widowmaker trade is in junk bonds...not equities. The fed is not going to raise rates in a lifetime because of how over valued that market is. And it is a huge market too.
The Fed will continue to normalize as that is the only thing that can keep the bubble alive. "Gives the pretense of sound money."
If the dollar looks like its going to tank "look out below."
Hot financial babes.
The CNBC'ers don't understand gold, and they never will. They try to understand it as an "investment" and all of their analysis in that regard is useless. It has become funny to watch. They laugh at me, and I laugh at them.
Classic. Lol.
Ok, we're in a world that is post dollar. The gold and silver has gone through the roof. What's it look like outside? Is it safe? Is there gas in your car? No. Take the motorcycle. Wait those are almost infinitly valuable now. Problem is most people don't have one. A rope springs up at the crosswalk catching you in the throat. One of the saddlebags goes clattering off the bike broken, that had your pistol. You are vaguely aware of hands going in your pockets, taking your boots. Some of your gold, Kruegerands are pinging sweetly as they fall in the street, quickly grabbed up. A fight between the trappers ensues. You crawl away with no pants and are sure you have a broken leg. Nobody has stabbed you, yet.
Reverse Citizens United Now. Hold your representatives responsible NOW! Accountablility. Enforcement. Re-regulation. Bring manufacturing home. Tax exporters of jobs and their imports. Regrow an economy before it's too late.
Gold, silver and a handful of oil drillers are too cheap right now. They are the only bargains in this overinflated market.
I'm not sure Marc sees the impact of unlimited derivative gold. When certain parties can sell without limit then the price of the paper gold will never rise....never. So why own gold? Because it can't go on for ever. The fed won't run out of paper but reality will intervene and eventually when things fall apart gold will have it's day again.
It is useless to try to tell others the value of gold when they only see more dollars as the benefit. I have given up. Only when there is a phase shift and it is too late will it make sense. If you get it you get it...if not buy stock...they are on a tear I hear.
Marc is one man who gets that the transition to a less valuable dollar worldwide will not be easy going for dollar holders. The stunning simplicity of that fact gets he and his ilk labeled as gold bugs/permabears, etc. The MSM is complicit in the dollar's demise and they know it. Those CME traders effectively validated Marc's points as well. Go Faber!!
I also found that anchor's cigarette lips distracting and very unattractive that so many lady smokers have.
Well, I'll put it all together for ya.
Equity cockroaches = STOCKROACHES
well....
i m a proud gold-bug! never felt ashamed
1. Gold is considereed a somewhat 'yesterday" type investment. Only useful if the financial world comes to an end (which it could). It used to be known for fighting inflation but that seems to have diminished because true inflation is roaring but govt & Wall street supression of gold is keeping the price down.
2. If gold is such a poor investment why is the Eastern half over the world buying it up over last 3 years. Could be gold backed currency or asset diversification......either way good for gold. I have a personal belief, which was brought up on ZH a while back, that China and a few other big holders of UST & USD have put the pressure on US to keep the price of gold down or there could be a fire sale on US assetts held abroad thus raising US interest rates big time.
3. Years ago, Paul Volker - former Fed Head, said one of the biggest mistakes he made during the high inflation 80'swas not controling the price of gold. It's rose from200's to 800's in a short time. Canary in coal mine was screaming at top of it's lungs. Did not look good thus today's supression!
The "exorbitant privilege" the US enjoys (thanks to post WWII destruction of the europe & Japan) must end at some point. All those USD's used as reserve currency and generated to build up world wide military.....well it seems some big players like China, Russia and a few others see the days running out on USD and are taking appropriate action now accumulating gold.
As a gold bug for years I can tell you that if you mention your gold investments to anyone, even today, you get a funny look. I have about 12% of savings in gold & silver bullion (in hand). That will probably not change much.
Gold is off it's high's and silver is WAY off. Not a bad time to buy. Bullion is simply insurance on a corrupt fiat system.
"Equity cockroaches" does have sort of a nice ring to it, no?
How about "securities slugs" for the bond crowd? :-D
On the long run, it doesn't make any difference what people think the value of gold is today. Reality will rule, and all this money printing will cause it to increase in value. The lower price today is just a buying opportunity.
"You know what I'd like to do to her? Something i call a dirty fozzie"