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“I Want To Be Diversified, I Want To Own Some Gold” - Faber
Veteran investor Marc Faber, author of The Gloom, Boom and Doom Report, reiterated the need for gold in a diversified portfolio when interviewed last week on CNBC.
Faber, a resident of Thailand, is an advocate of gold storage in Singapore, and believes that a diversified portfolio will help protect against future market corrections which he believes are on the horizon.
Faber doesn’t see further new highs this year in the US equity markets, and thinks that there could be an S&P correction of between 10% and 30%. While admittedly Faber has been expecting a US stock market correction for some time now, his view is based on what he sees as weaker earnings from some US consumer bellwether companies.
Additionally, on a technical level, Faber points to a lower participation rate of S&P stocks making new highs and more stocks making new lows. He looks for an acceleration of weakness in credit markets starting in the high yield (junk bond) market - which has already weakened - and continued weaker corporate earnings.
Asked for his view about gold, Faber commented on possible gold market manipulation and the need to diversify investment portfolios:
“Basically, we’ve been in a correction since 2011, some informed observers they think that the market is manipulated, I don’t know.
But I have always argued, we don’t know how the world looks like in 5 years’ time, maybe the S&P is at 3000, but it could also be at 1500, we just don’t know.
There’s a lot of manipulation through fiscal and monetary policies.
Now, I want to be diversified, I want to own some gold, I want to own some shares, I own the most in Asia, and some in Europe because I think in Europe there’s still better value than in the US, and I own some bonds and cash and real estate. So, I hope that when the collapse happens, I’m only going to lose 50% of my money. “
Both the SGX’s upcoming partnership with Brinks in Singapore, and the CME’s upcoming partnerships with Via Mat, Brinks and HKIA in Hong Kong, clearly illustrate the growing importance of secure precious metals vaulting services in these two critical financial centres in Asia.
As part of a diversified investment portfolio, secure precious metals storage in safe and stable jurisdictions such as Singapore and Hong Kong is essential for wealth protection in an increasingly volatile global financial system.
Faber webinar on gold storage in Singapore
'Gold Webinar - Your Questions & Answers'
on Today Sep 16, 2014 at 1300 EST
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I've been saying this for quiet a while. Michael Snyder and I seem to think a like. A trillion was expected. But I'm not fully satisfied with the Tax Revenue from US Individuals. I'll look into that and I have to say I expected more like $1.5 Trillion Deficit versus $1 Trillion in US Debt Expansion (Inflation).
As you point out there is no discipline in the G.W. Bush or Barak Obama Administration. These were Liberal Spending Admins.
Here is a story that fits. It is an original Satire.
Did you hear the story of what happened when John D. Rockafeller heard about "Communism"?
Well see there was a banker that set up a meeting to discuss this very important trend from Europe. It was about 1890 just when the Robberbarons had become the richest men in America (or the World). In attendance was none other than John Pierpont Morgan, himself.
Banker: Sir this is a populist movement an offshoot from Socialism called Communism who ideas were put forth by Karl Marx and Friedrich Engles. We believe this is a strong and dangerous trend in view of the Union movement of workers. Mainly the idea is that all men are equal, capitalism is bad, and all men should earn the same amount of money and work for the state and for the future of the state. This equality extend to luxuries which they claim are unfair to those that don't have them.
John D: Well then under communism all men are poor.
JP Morgan: Yes, quiet true. And we may want to fight this with the full power of the government & military. Or alternatively we might want to make it a political issue and try to turn it to advantage.
John D: You mean we could convince people to accept low wages if they think they are serving the state?
JP Morgan: It would be a great victory. The trend now for strikes and workers unions is to ask for more money. And it seems that under this "Communism" they plan to educate the people to prepare for a Revolution.
John D: Well... it seems like the Strikers are plenty educated already. We have to get out in front of this. Perhaps we can start educational foundations to influence what is taught and to keep education limited to "Capitalist Ideas.
JP Morgan: We have to address several sides all at once, political, educational, military as we have in Latin America and the Islands, and our supervisors and managers will stress the principals of success that we need for our factories.
John D: So, we declare war on Communism, suppress communism, suppress the workers unions & strikes, and set up educational foundations and go to work on universities. Plus we will always need more workers coming to our factories and America to keep wages competitive (low). However we will continue to import produce or whatever we need from outside. But how can we really make Communism work for us in the USA?
JP Morgan: We will know more as we work through the "Set Up" of your foundations. Firstly we will use Psychology from Europe, I know a few good men. Secondly we rely on principals of not upsetting the people, letting people have their sports and families, letting them be distracted by the things we want to teach them. We will repeat the messages we want successful workers to learn to be successful. A man will be judged by his success and how he works. The value here is work. Be on time for work. Follow a Schedule. Don't waste time eating or taking breaks. The hard workers are successful and loved by other men.
John D: Very good. I think we can set some strong goals for our new Foundations. What about this "Economics" study? Do you think you can use their work?
JP Morgan: No. That may actually be traced to Socialist Ideas. We can incorporate it into the Foundations Educational work, but only to claim it as our own. Yes, it is good to be in front of trends. We will look to claim History, US History, Government Studies, Cultural Studies, Literature, communism & economics. If we are smart we can have our people teaching all of these subjects to not only workers, university students, teachers, but also to our Politicians and Government Leaders.
John D: Look, we need debt to bring people to us. Communism won't be accepted without a huge debt scare or bank scare. Is that what you are thinking?
JP Morgan: Yes, either debt or expenses, control over the product they need or the service they want. War brings people to their knees. War depletes the treasury of all countries, but their money flows to the sellers and the bankers. Then they have to ask for more money. people will accept this idea of working for less to help the state, just as they accept going to war to help the state. The only block is the US Constitution and the workings of each independent state of the union. War & Debt is the key. It is the cycle of all countries. Lawyers will also have to be part of our educational process within the foundation work and that means universities too. Probably we will train the people who will later become the justices in all of the courts and the legislators in all of the governing bodies. People come quickly around when explained to them why they work. The Law and the Government takes long range planning and conditioning. But they have to come to us in the end for financing. It will be a great victory.
John D: Someone is going to win & someone is going to lose. We are going to win. We are going to build the biggest companies along with cities & states. Pierpont, you are coming with me. You have to set up the banking system so that we can get the financing. Now, tell me about that Central Bank.
JP Morgan: Don't worry about that Sir. It will take some time. Whether we have royalty or politicians then need us and will do what we tell them. In the US we have it much easier. Just give us time and we will have all of the politicians pulling for us.
And so "Communist Ideas" were adopted officially in the USA in 1997... just before bankruptcy laws were strengthened, Sub-prime mortgages took off, Citibank Merged with AIG, and Glass Steagall Act was repealed.
Final Phase of Banker Installed Revolution can only occur after total economic collapse and collapse of the US Government.
What's the point of having a portfolio which one expects to lose 50% of value?
zzzzzzzz....snort....uh?
Wake me when he has something new to say.
Larry Edelson now just today called for gold $950ish, silver $12.50. I remember him claiming earlier this year PM price manipulation was just plain hogwash.
Marc Faber wants gold???!!!
??? !!! ??? !!!! !!!eleventy!!
Now that's what I call noooooz.
"I vant to be alone." - Greta Garbo to Mark Faber
Personally I like British Sovereigns the best, such elegance; she really is a thing of beauty. Long live da Queen!
/sarc
Have you ever looked at a Mexican 50 Peso Gold Piece ? ?they're absolutely beautiful; and the perfect size to demonstrate the unique sound of gold finger tip cymbals. Almost orgasmic to handle. Well; if you're a metals nut, like me.
You really need a tube of 1/10th oz gold eagles/maples/krugerrands... compact, can be placed ANYWHERE if you're in dire straits.
Freakin' premiums for 1/10th are a concern though. At least for me. Thoughts on the Valcambi breakable cards? I s'pose if they're recognizeable, on a larger scale, lower prem., diverse incrementation, etc. There's a scenario for "no currencies" accepted here.
535 ounces of silver and 6.5 ounces of gold... All lost in a tragic boating accident.
Down arrow for you. Why not just stick a sign on your front lawn?
For those who live in Thailand, why store your gold in Singapore?
No 2nd Amendment in Thailand? Police/Gov in Thailand so corrupt they threaten door 2 door confiscation?
Like suggesting peeps in corrupt NY, NJ or Conn, store their gold in less corrupt Kansas or Nebraska.
alex wrote
"....For those who live in Thailand, why store your gold in Singapore? " Ah, a newbie---one can tell you have never been to Asia. There are tong (gold) shops everywhere in Thailand. If you bought any amount of shiney stuff, the gold seller would know. That is one too many!
Kon Tai have the innate ability to smell gold and if you purchased 1 oz or many oz, they would know your stash and you would be relieved of your burden. Probably by nightfall.
Marc Faber is very smart and having his gold stashed in Singa means the guy is bright. Keep this in mind should you head to Asia "...you never want to be worth more dead than alive."
Westerners are known as "falangs" and our every move is watched while in Asia. This is the short version of why one keeps their gold stashed in Singapore. Wise move.
Buttmint ?? hmm. not sure what to think about that. good post tho.
how can SGX do what everyone was hoping for, true pricing of precious metals, and bring in GS, and JPM?
now GS,and JPM will be in Hong Kong, (comex east), Singapore, and Shanghai.
disappointed.
I believe in diversification. 100% long term savings in Silver; enough "dollars" to make income on the futures market. Isn't that diversification?
Those people up there in Scotland shouldn't be worried about what currency the nation uses if it votes for independence if they hold gold, silver, plt, pall, etc. in their savings. The Hard Asset, not the paper stuff.
"So, I hope that when the collapse happens, I’m only going to lose 50% of my money. “
It sounds more like a diversified porfolio sucks to me. Keep on stackin....
I would congratulate him on his honesty and refusal to "hype" you with big claims. Anybody with 50% of their holdings intact after the super crash will look like a genius.
I'm fairly certain he will be better off than me after the next crash. I lost a bunch on the last one. I just don't trust stocks and bonds unless it's stock in a local private company that I can see what is going on.
US 90% Silver coins; used; in bags; still available, that's the amazing thing! They won't lose value.
The open interest on the SLV continues to build with HUGE sums standing for physical delivery. At this point the OI standing for delivery is equivalent to a year and a quarter of annual production. The next three months are going to finally be liberating as the shackles of manipulation are broken and the paper rigging is crushed!
And the lower it goes, the more longs keep turning the knife. There's a bankster an his Hampton home somewhere who just realized his toilets are all clogged as he runs with his pants around his ankles.
How do you detect who's standing for delivery? Reference, Link, documentation, please ?
I'll stick to my local Bank of Mother Earth thank you very much!
my guy sells $2 over spot..no tax..liberty silver
eagles....trades for frn paper..no reciepts.
mined in nevada...
Vaulting services in Asia are just a new way for the big banks to rehypothecate gold. Count on it.
Faber offers some pretty good long term stock tips via his newsletter, especially Asian stocks. But the newsletter is expensive but then it all depends on how much you have to invest. if $1m+ the newsletter is cheap.
Does Faber even make any money?? The boys on a constant contrarian tip that I can't imagine so. Maybe selling fear.
"Does Faber even make any money?? The boys on a constant contrarian tip that I can't imagine so. Maybe selling fear."
Faber is Swiss German - he makes money.
although they are not as durable if circulated for use, i like the more-pure gold maple leafs (.9999 gold content) and they tend to be about the cheapest to purchase from what i have seen. Same with the silver maple leafs. A little better pricing if you buy rounds. Biggest problem i have with silver is the premium % to buy vs gold (15-20% premium vs gold 3-4% premium). Some believe silver has a greater margin for increase but who knows really... Gold stores more value in a smaller package.
I like the 5$ silver maples because they will never be valued less than that. SE's are faced at a buck and.cost more.
Buffalo rounds with an .88 premium vs $2-3 premium for silver Maples is a no-brainer imo. I do agree with the gold Maples. Best bang for buck. Schiff's Europacific Precious Metals is a solid, low-cost way to go imo.
Buffaloes are fine-looking coins. The USA still makes the finest coins in the world when we use the old dies ... the new ones all suck, universally, especially China. No one can be troubled with refined, elegant dignity, they have to be painted shiney, cartoonish. Sign of descent.
The maples look and feel better..., just saying.
Mexican coins also...
The nice thing about fine gold coins (99.99) is that you have additional liquidity in that they can be sold to goldsmiths. This is really important if you live in a small town with limited sales options. Do bare in mind that goldsmiths will generally only buy gold as they need it so don't expect to be able to sell them any large quantities.
"Do bare in mind"
Jesus Christ.
"The right to bare arms"
Are you afraid of bears?
Fucking hell, learn how to spell your language before giving financial advice to people. Christ almighty.
USA USA USA USA USA
Question: Is 1/2 oz gold American Eagle as good as 1/2 oz Philharmoniker? Thanks for opinions.
Yes.
Yes.
I like and own them both in the one ounce variant. I mean, before they went to the bottom of the Rhine.
Hey, Gavrikon; I remember you from the old days, when we used to have shouting matches with "American Patriot" on Market Watch's blog. How's it going dude?
Who you buy them from is what's important. Other than that, in a SHTF scenario, the more recognizable coins may have better liquidity. Buy what you like from a reputable source. Whatever coin/bar that motivates you to buy more and keep stacking.
The seller is reputable. He used to have broader range of coins in the past, but for some reason recently it's pretty limited to 1 or 2 coins in generall compared to 20 in the not so far past.
It is hard for dealers to carry a large variety of precious metal product. You have to either buy on the basis of your sales (keep inventory constant) or hedge your inventory to protect yourself from volitility. Whatever you choose to do as a dealer, a large variety of product complicates things.
You can tell the dealers that speculate with their inventory....they are going bankrupt despite the greatest bull market ever in precious metals. Yeah I know it's still early.
I think ProvidentMetals dot com has some fair pricing.
It's always a good day to exchange some spare fiat for some PMs, especially at those extra sale prices offered by the FED and incompetent mining CEOs.
Too late for gld for those who didn't start stacking early. Eyes of Sauron are open.
The same can be said for the SLV, and I like my CERTIFIED Silver. I am more than willing to pay the vig for certified at these giveaway prices.
Why would having WS Bankster firms and their derivative manipulation vehicles being involved with SGX be a positive thing?