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“I Wouldn’t Hold My Gold in the U.S. At All” - Faber
“I Wouldn’t Hold My Gold in the U.S. At All” - Faber
Dr Marc Faber has again urged people in the world to be diversified, own physical gold and to be their own central bank.
Dr Marc Faber on Gold
In another fascinating interview with Bloomberg, Dr. Marc Faber covered Japan's massive QE experiment, the slump in oil prices and the importance of diversification and owning physical gold.
The interview was extensive and he covered a lot of ground which helped put the current major economic trends in perspective. The editor of the the Gloom, Boom and Doom Report, is always contrarian but always measured in his insightful analysis.
Japan's foray into QE as a "ponzi scheme" in that "all the government bonds that the Treasury issues are being bought by the Bank of Japan" according to Faber. He said that in the short term Japan may not have to face consequences because "most countries are engaged in a Ponzi scheme."
But he warned that "it will not end well."
When the interviewer put it to him that various economic indicators such as jobs numbers in the US were positive recently he countered that these statistics" are published by the Obama administration, and therefore I would be very careful to take every figure for granted."
He pointed to first-time home-buyers in the US, the number of which are at thirty year lows.
"A lot of people are being squeezed very badly because the costs of living are rising more than their salaries and wages." The low home-buying figures show that people simply cannot afford to buy houses anymore demonstrating that no amount of cherry-picked statistics can gloss over the fact the US economy is not in good shape.
He also mentioned his long maintained view that inflation and deflation are not uniform phenomena but that "in some sectors of the economy you can have inflation and in some sectors deflation." The implication of this is that, again, government statistics are not necessarily an accurate reflection of the state of the economy.
He does not see long term weakness in the oil market. The current low prices, while they may be advantageous to western consumers are damaging those companies in the U.S. who took on large debts to develop oil drilling projects. And Saudi Arabia cannot run it's social system, he reckons, if prices go below $70 for an extended period.
The consumption of oil in the developing world is increasing from a very low base in comparison to the West.
"So I think the long-term trend for demand is up, but obviously the decline of oil prices, some people blame it on Saudi Arabia and some other blame it on the US and who knows what, the fact is maybe the decline in oil prices tells you that the global economy is not recovering as all the bullish analysts think, but actually it’s weakening. Yes, weakening."
To support this contention he argued that European economies are stagnant and China is in a slowdown. The knock on effect of this is that industrial countries are not buying commodities from resource-rich countries who in turn are not buying manufactured products from the West.
This means that "you have the potential of a downside spiral."
Singapore Freeport
With regards to gold being at four-year lows he said "it’s been a miserable performance since 2011. However, from the late 1990 lows we’re still up more than four times. So I just looked at performance tables over 10 years and 15 years. Gold hasn’t done that badly, has done actually better than stocks."
When asked about Goldman Sachs negative outlook on gold, he mischievously said "I would say Goldman Sachs is very good at predicting lower prices when they want to buy something."
He added, "now I personally, I think that we may still go lower. It’s possible. I’m not a prophet, but I’m telling you I want to own some gold because I don’t trust the financial system anymore. I think the whole thing is going to collapse one day and then I’ll be happy to have some assets. But of course the custody is important. I wouldn’t hold my gold at the Federal Reserve because they will lend it out. I wouldn’t hold my gold in the US at all."
In terms of custody, Dr. Faber has been a long time advocate of storing gold in Singapore. We concur and believe that along with Hong Kong and Zurich, Singapore is one of the safest places in the world to store bullion.
In terms of government, Singapore is ranked 4th in the world and 1st in Asia for having the least corruption in its economy. Singapore is ranked the most transparent country in the world.
In terms of economic performance, Singapore is ranked No. 2 worldwide as the city with the best investment potential for 15 consecutive years. Singapore is the world leader in foreign trade and investment.
In terms of business competitiveness, legislation and efficiency, Singapore is ranked the most competitive country in the world. Singapore is ranked No. 1 for having the most open economy for international trade and investment.
Singapore is one of the world's easiest place to do business and may have the best business environment in Asia Pacific and worldwide. Singapore is Asia's most "network ready" country.
Singapore is first in the world for having the best protection of intellectual property and is the least bureaucratic place for doing business in Asia and possibly the world.
Dr. Faber prudently advises clients not only to diversify among asset classes but to also to diversify within asset classes. We share this view. We advise our clients to hold gold and silver in various locations and in various forms but always in secure vaults and safe jurisdictions such as Singapore or Switzerland.
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Singapore is an overhyped economy with decreasing relevance in the global economy. Go to their alternative media to get the truths of a State Capitalist Economy that have repressive economic conditions. An accelerating trend towards Croynism.
All the stats are marketing materials that mask artificial growth and economic stability.
Don't forget the US Base is there where your physical gold will be if you wish to bother to store it there.
I store my gold in my wife's cuzi.
Why put it someplace that everyone can put their hands on it?
Human conceit .
They assume a compliant climate .
See
https://www.academia.edu/9204956/Slingshot_Atmospheric_Rivers
or
http://andreswhy.blogspot.com/2014/11/slingshot-atmospheric-rivers.html
Most civilizations have been destroyed by climate change .
For instance ,
The next week (12 to 15 nov 2014) has a very high probability of two ArkStorm events in the North American continent .
A,ll this worry about financial abstracts like gold , etc is rather moot if you are starving or thirsty .
yep, had the gov steal my silver in 2007 from a warehouse in Idaho, never got it back, nor any response to my inquiries. I now have my gold overseas by Goldmoney.
Well, what seems to be "safe" today, may not be so "safe" tomorrow.
Furthermore, the gold & silver, I get my hands on will not need an vault for storing!
piece here and there
Why is Marc Farber referred to as "Dr. Marc Farber"?
Is he a medical doctor?
Classmates with Dr. Dre.
The value of "something" is not an issue to take lightly. Value is not a constant and can be derived from several factors such as how liquid a market is, supply and demand or utility value, things can spoil or become obsolete making where you invest very important.
Value is not as constant as many people think or always destined to rise. I have discovered that when you start buying things at ten cents on the dollar your money begins to go a long way. This is a lesson many people may soon learn, or maybe not. The article below delves into how values constantly shift and cautions on the risk of paper promises. I like gold but it is hard to say where things are going.
http://brucewilds.blogspot.com/2014/05/value-and-worth-constantly-change.html
Think
if you are hiding wealth, would you rather hide $10,000 of gold or the $10,000 of silver?
Both. 10K of each sounds about right. It's not hiding wealth, just keeping it out of reach of the banks and the IRS. SO SORRY, me no have anymore, all gone. lol!
Hey Gang....there is something everyone on the blog is SMUG about...that their boat sank, etc. What everyone is missing gold and silver is thus: 1) ONCE you go to redeem it, or cash some in, you will be brought up on charges, tortured and all that good stuff of a police state.
2) There will be an excellent SNITCH SYSTEM in place. Don't believe me, ask any Russian. You will be snitched upon.
Yeah, make fun of Faber. He is in the a good time zone and near Singapore.
I'm pretty smug about just being me.
Sometimes when I'm not busy, I wallow in my awesomeness.
Torture is a bad game, hold out and they hurt you more, roll over and you hurt yourself.
The bad thing is when you roll over and they still hurt you more!
At last check 2014 Silver Eagles are legal tender valued at one dollar. Says it right on the back side of the coin. Gold Eagles valued at $50.00.
So Eagles are legal tender. That's why I buy Eagles.
90% silver coins. (dines, quarters, halfs) I doubt if .gov will confiscate coins.
To much talk on Zero Hedge about gold and silver over the weekend. I hope you didn't jinx higher prices. Lower prices, I just might buy more 2014 Silver Eagles. $383.33 is my lowest price so far for a roll of twenty. Will buy below that price.
As far as holding gold and silver far away, no thanks. I want access without showing any I.D., Passport, D.L. Etc.
Gold confiscation? Not in the USSA! Will never happen...oh, wait. I forgot.
I would enjoy seeing a banker in Singapore getting caned.
I'm not sure what he's talking about in oil. Renewable energy is dropping in cost so fast, that
a small PV array for a villager in africa is far cheaper then a small gasoline generator and a 10 year supply of
gasoline. Gasoline is terribly expensive in the 3rd world, a 1500 Watt generator will
run anywhere from $200 to $2000. So anywhere from $0.10 to $1.00/Watt, but they consume 1/3rd of a gallon
per hour. In the US thats' $3/gallon but in much of Africa it can be $9/gallon. Or $1-$3/hour or $24-$72/day.
Do the math that is starting to be 2 cents/WH to 5 cents/watt hour.
PV costs $3-4/watt installed in europe, let's just use that, so in somewhere between 60-200 days a small PV array
pays for itself in gasoline savings. Even if you double that price to add a small battery array, it doesn't make sense after a year to have a gasoline generator.
A portable gas generator makes economic sense if it only has to run occasionally or "Easily ported". Setting up a generator
and doing construction, or camping, sure.... But, for people off the grid and not intending to move, a small PV system is much cheaper and that is why Africa is one of the big boom regions for solar power.
Never trust some pompous asshat who has a PhD and insists on being called Dr. If they are in the top 1% trust them even less. You don't get there being nice or even honest.
-lol.... see those down arrows... ? those are the Phart Docs. reading.... -lol
-----
edit... particularly... ekonomists. ... hahahahahaha
Sinapore
canning still legal punishment.
While caning might well be barbaric, getting shot to death by police in a wrong-address no-knock raid at 3AM in your own bed is not preferable, and America sure seems to have a lot of those.
OR
The Police pull you over and then take all your money for no reason at all. Now that's a damn fine place to live.
Sinapore?
Personally I split my vast holdings of bars between Zurich, Monte Carlo, Luxumberg, and the Caymans.
WTF? I'd be lucky to be able to buy 3 coins and I'd store them in my pocket.
What's the saying, if you don't hold it you don't own it? So how is storing any metals I have in a far away land "holding" it?
A hole in the ground under a tree has to be as good as some storage facility in Singapore or wherever...
not if the goons from the gov. (from wherever you are) are spying.....
residency.... in place A
biz (or revenue creation)... in place B
actual location..... (undisclosed) but different from place A and B
and oh btw.... you are a mere peasant is this last location.... NO ONE knows who and what you are/have
this is the future..... (possibly safe) if you follow such strategy, while mad-max is ravaging the so call 'civilization'
fuck that shit