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Marc Faber On Gold 'Bugs' And Equity 'Cockroaches'

Tyler Durden's picture


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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Wed, 06/18/2014 - 20:11 | 4871719 remain calm
remain calm's picture

I'll admit it I am a bug. There I did it. I feel better.

Wed, 06/18/2014 - 20:38 | 4871784 Temporalist
Temporalist's picture

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!


Wed, 06/18/2014 - 22:09 | 4872076 Spitzer
Spitzer's picture

Her face looks like a kicked in bird cage.

Thu, 06/19/2014 - 00:02 | 4872406 Miggy
Miggy's picture

She made his point brilliantly by being so defiant early and often.

Thu, 06/19/2014 - 00:22 | 4872439 DoChenRollingBearing
DoChenRollingBearing's picture

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...

Thu, 06/19/2014 - 06:51 | 4872737 Supernova Born
Supernova Born's picture

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.

Thu, 06/19/2014 - 08:59 | 4873101 Clint Liquor
Clint Liquor's picture

I got tired of my buddies calling me a 'bug'. So, I started calling them 'Stocksuckers'. They don't much like that.

Thu, 06/19/2014 - 00:37 | 4872472 DanDaley
DanDaley's picture

She's a snide little idiot. ("So you're saying that CNBC is driving down the price of gold?" Just STFU!) 

Thu, 06/19/2014 - 08:43 | 4873029 TrumpXVI
TrumpXVI's picture

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.

Wed, 06/18/2014 - 20:49 | 4871813 rubiconsolutions
rubiconsolutions's picture

"Faber holds around 25% of his assets in gold...." 

What a wuss. I hold about 50% in AU and AG.

"Buying physical since 1981"


Wed, 06/18/2014 - 21:03 | 4871858 lickspitler
lickspitler's picture

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.

Wed, 06/18/2014 - 21:23 | 4871913 Grande Tetons
Grande Tetons's picture

The fat dog is basking in the sun...conserving calories...while he his planning to take a shit on your lawn. 

Thu, 06/19/2014 - 09:11 | 4873147 gafgroocK
gafgroocK's picture



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.

Wed, 06/18/2014 - 23:36 | 4872340 rubiconsolutions
rubiconsolutions's picture

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. 

Thu, 06/19/2014 - 00:00 | 4872400 TheReplacement
TheReplacement's picture

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

Thu, 06/19/2014 - 00:07 | 4872409 Miggy
Miggy's picture

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

Thu, 06/19/2014 - 00:26 | 4872450 DoChenRollingBearing
DoChenRollingBearing's picture

+ infinity

Thu, 06/19/2014 - 01:06 | 4872512 Squid-puppets a...
Squid-puppets a-go-go's picture

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" 

Thu, 06/19/2014 - 02:49 | 4872630 lickspitler
lickspitler's picture

I smell  Long and Wrong. 


Thu, 06/19/2014 - 04:01 | 4872677 snr-moment
snr-moment's picture

I bought at 360 and 5.  Funny, it just feels so right.

Thu, 06/19/2014 - 07:36 | 4872848 SoilMyselfRotten
SoilMyselfRotten's picture

You should have stopped at "I smell"

Thu, 06/19/2014 - 02:34 | 4872615 SF beatnik
SF beatnik's picture

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. 

Wed, 06/18/2014 - 20:12 | 4871721 Beam Me Up Scotty
Beam Me Up Scotty's picture

At least Bugs float when the boat sinks.....

Wed, 06/18/2014 - 20:17 | 4871729 JJdog
JJdog's picture

Having such a clueless moron on TV asking stupid questionS is a big insult! Why Marc even bother with these clowns? 

Wed, 06/18/2014 - 20:27 | 4871756 Say What Again
Say What Again's picture

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.

Wed, 06/18/2014 - 21:28 | 4871931 BC6
BC6's picture

It's the one that says, "Bad Mother Fucker"

Thu, 06/19/2014 - 08:42 | 4873025 Town Crier
Town Crier's picture

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.

Wed, 06/18/2014 - 22:23 | 4872103 Againstthelie
Againstthelie's picture

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!


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.

Wed, 06/18/2014 - 23:54 | 4872381 Flakmeister
Flakmeister's picture

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....

Thu, 06/19/2014 - 00:46 | 4872486 Squid Viscous
Squid Viscous's picture

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!

Thu, 06/19/2014 - 01:05 | 4872510 Flakmeister
Flakmeister's picture

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....

Thu, 06/19/2014 - 10:57 | 4873689 Againstthelie
Againstthelie's picture

You obviously have no clue about his investment philosophy and recommendations.

Thu, 06/19/2014 - 11:41 | 4873897 Flakmeister
Flakmeister's picture

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...

Wed, 06/18/2014 - 20:16 | 4871730 Charles Nelson ...
Charles Nelson Reilly's picture

Haha..... Every now and again Faber throws out a zinger or two. "equity cockroaches"... Classic!

Wed, 06/18/2014 - 20:38 | 4871785 DeadFred
DeadFred's picture

I bet he can deliver his lines without a teleprompter too.

Thu, 06/19/2014 - 02:00 | 4872576 silverserfer
silverserfer's picture

I think "equity cockroack" is a rather polite term.

I prefer  "ponzi whore" myself.

Thu, 06/19/2014 - 06:50 | 4872773 Tall Tom
Tall Tom's picture

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.

Wed, 06/18/2014 - 20:19 | 4871736 Clockwork Orange
Clockwork Orange's picture

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.

Wed, 06/18/2014 - 20:49 | 4871812 Mr Pink
Mr Pink's picture

Never step on a cockroach! Their eggs get on your shoes and then you walk in your house and you're infested

Wed, 06/18/2014 - 20:19 | 4871739 SmittyinLA
SmittyinLA's picture

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.

Wed, 06/18/2014 - 20:23 | 4871749 agent default
agent default's picture

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?

Wed, 06/18/2014 - 20:37 | 4871783 stant
stant's picture

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

Wed, 06/18/2014 - 23:12 | 4872288 August
August's picture

The best thing about gold is that nobody knows you have it.  Do they?

Sure wish I had some.

Thu, 06/19/2014 - 07:38 | 4872850 Herodotus
Herodotus's picture

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.

Thu, 06/19/2014 - 09:33 | 4873254 Flakmeister
Flakmeister's picture

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:

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...

Wed, 06/18/2014 - 20:21 | 4871743 poydras
poydras's picture

That was beautiful.

Wed, 06/18/2014 - 20:22 | 4871744 techstrategy
techstrategy's picture

The bugs will survive the financial nuclear meltdown.  The bulls will go extinct.  

Thu, 06/19/2014 - 04:05 | 4872679 snr-moment
snr-moment's picture

and if you stack it right, a real one too.

Wed, 06/18/2014 - 20:23 | 4871747 logicalman
logicalman's picture

Gold exists.

Derivitives don't.

Paper promises are worth paper.

Simple, really.

Wed, 06/18/2014 - 20:24 | 4871751 Bemused Observer
Bemused Observer's picture

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 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...

Wed, 06/18/2014 - 20:27 | 4871754 Hal n back
Hal n back's picture

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.


Wed, 06/18/2014 - 20:37 | 4871782 Tom Brady
Tom Brady's picture

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.

Wed, 06/18/2014 - 21:02 | 4871850 Amish Hacker
Amish Hacker's picture

Keep Shanghai Gold Exchange on your radar.

Wed, 06/18/2014 - 22:03 | 4872059 BeanusCountus
BeanusCountus's picture

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.

Thu, 06/19/2014 - 03:54 | 4872671 shouldvekilledthem
shouldvekilledthem's picture

One can only wonder what it would be like in a world where physical assets actually exchanged hands


As much as I like gold, it's utterly inefficient to transfer (use), have no way to verify scarcity, and it's very hard to  verify its authenticity.


Wed, 06/18/2014 - 20:39 | 4871788 pachanguero
pachanguero's picture

Here in Asia, gold rules

Wed, 06/18/2014 - 20:45 | 4871799 Shizzmoney
Shizzmoney's picture


nobody at CNBC owns gold. Nobody at Bloomberg owns gold

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.

Wed, 06/18/2014 - 20:47 | 4871809 Crawdaddy
Crawdaddy's picture

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.

Wed, 06/18/2014 - 20:57 | 4871837 James Dandy
James Dandy's picture

Equity cucarachas.  Has a nice ring to it.

Wed, 06/18/2014 - 21:03 | 4871851 Space Animatoltipap
Space Animatoltipap's picture

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.

Wed, 06/18/2014 - 21:41 | 4871972 Argos
Argos's picture

Stupid MSM reporter is an oxymoron. 

Wed, 06/18/2014 - 22:55 | 4872221 Tod E. Tosspot
Tod E. Tosspot's picture

I think you mean it's redundant...unless you think all reporters are geniuses.

Wed, 06/18/2014 - 21:18 | 4871896 ThroxxOfVron
ThroxxOfVron's picture

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?

Wed, 06/18/2014 - 21:32 | 4871944 logicalman
logicalman's picture

Problem is that the printer can conquer all .....

Until one day it can't.

That's when the 'fun' will really start.


Wed, 06/18/2014 - 21:39 | 4871964 fasTTcar
fasTTcar's picture

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.

Wed, 06/18/2014 - 23:06 | 4872266 litemine
litemine's picture

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.

Wed, 06/18/2014 - 21:42 | 4871976 royal
royal's picture

LOL @ "equity cockroaches."

Wed, 06/18/2014 - 21:45 | 4871988 alexcojones
alexcojones's picture

The American Media is an Enemy of The American People

Wed, 06/18/2014 - 21:57 | 4872034 homiegot
homiegot's picture

American media serve their masters: corporations and government.

Wed, 06/18/2014 - 21:46 | 4871990 disabledvet
disabledvet's picture

I think what should be asked is not gold versus equities but gold versus debt.

Equities are a risk 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."

Wed, 06/18/2014 - 21:54 | 4872024 homiegot
homiegot's picture

Hot financial babes.

Wed, 06/18/2014 - 21:57 | 4872032 magnumpk
magnumpk's picture

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.

Wed, 06/18/2014 - 23:08 | 4872270 Crazed Smoker
Crazed Smoker's picture

Classic.  Lol.

Wed, 06/18/2014 - 23:48 | 4872371 kurt
kurt's picture

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.

Wed, 06/18/2014 - 23:52 | 4872379 Never One Roach
Never One Roach's picture

Gold, silver and a handful of oil drillers are too cheap right now. They are the only bargains in this overinflated market.

Thu, 06/19/2014 - 00:04 | 4872408 lasvegaspersona
lasvegaspersona's picture

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.

Thu, 06/19/2014 - 00:33 | 4872463 J Pancreas
J Pancreas's picture

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.

Thu, 06/19/2014 - 05:26 | 4872727 RabbitChow
RabbitChow's picture

Well, I'll put it all together for ya.  

Equity cockroaches = STOCKROACHES

Thu, 06/19/2014 - 07:57 | 4872877 Ar-Pharazôn
Ar-Pharazôn's picture



i m a proud gold-bug! never felt ashamed

Thu, 06/19/2014 - 07:59 | 4872879 general ripper
general ripper's picture

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.


Thu, 06/19/2014 - 08:52 | 4873064 d edwards
d edwards's picture

"Equity cockroaches" does have sort of a nice ring to it, no?


How about "securities slugs" for the bond crowd? :-D

Thu, 06/19/2014 - 08:53 | 4873069 Loophole
Loophole's picture

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.

Thu, 06/19/2014 - 09:06 | 4873128 huggy_in_london
huggy_in_london's picture

"You know what I'd like to do to her?  Something i call a dirty fozzie"

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