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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 Murf_DaSurf
Murf_DaSurf'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 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...

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