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“Buy Gold” and Short Federal Reserve, Says Marc Faber
“Buy Gold” and Short Federal Reserve, Says Marc Faber
Faber: “Only one way to short central banks and that is to buy gold”.
Marc Faber warned at the weekend that 2015 may be the year that investors will lose confidence in central banks and that investors will “suddenly realise what a scam that central banking is”.
He is long gold and recently bought more gold and investors should buy gold and short sectors such as biotech and social media.
In an interview with Jack Otter, editor Of Barrons.com, Dr. Faber again reiterated his desire to short central banks. While that is technically impossible, the editor of the excellent Gloom, Doom and Boom newsletter indicated that it can be done by proxy through the buying of gold and silver bullion.
In a Barron’s video interview published by the Wall Street Journal, ‘Dr. Doom’ said,
I think that my bet is that if i could short central banks i would short central banks in 2015 because I think that investors will suddenly realise what a scam central banking is and then they will lose confidence. And there is only one way to short central banks and that is to buy gold.
In January he said at a Societe Generale presentation that he expected to price of gold to go "up substantially - say 30%" in 2015. Dr. Faber has an impressive track record of accurately predicting medium term patterns within the overall long-term trend.
He sees an anaemic economic performance from Europe this year, he thinks the U.S. is slowing and his attitude to emerging markets has cooled. "In some [emerging market] countries they may be growing 1-2%, in others there is a contraction in industrial production. The Chinese economy which is the dominant emerging economy in the world is definitely slowing down."
Alone among the emerging markets, India is still growing impressively at 5-6%. However, Dr. Faber does not see the enormous gains made in some sectors of the Indian economy - the stock market rallied 35% last year- and those of other emerging markets continuing.
"A lot of markets are not terribly expensive but [they] are not bargains," he said.
Ultimately he sees the global economy continuing to slow down. "In general, if you look at global exports they are flat, if you look at the global reserve accumulation they are flat. So I think that we will face a disappointing 2015 in terms of economic growth."
He added that while China is slowing down he expects the stock markets to perform reasonably well due to the distorting influence of central banks.
There is a lot central bank interventions and expectations by investors what the central bank will do next and so investors pile into stocks in the expectation that the Bank of China will essentially ease.
When asked where one should invest their money he indicated that his main strategy currently was to short various sectors rather than shorting companies.
In particular he singled out the biotech industry and with less enthusiasm social media and semiconductor ETFs. He was considering shorting the Australian dollar and indicated that the U.S. dollar was also in his sights while he thinks the euro is oversold in the short-term.
While he sees mainly shorting opportunities, he is long gold, prefers physical gold and opts for storage in Singapore:
Yes I am long gold. I've been long gold since the mid 1990's and I bought recently again more.
Marc Faber Webinar on Storing Gold in Singapore
Essential Guide To Storing Gold In Singapore
DAILY MARKET UPDATE
Today’s AM fix was USD 1,269.25, EUR 1,108.08 and GBP 835.31 per ounce.
Yesterday’s AM fix was USD 1,281, EUR 1,128.93 and GBP 851.84 per ounce.
Yesterday, gold lost 1.2% or $13.40, closing at $1,261.20. Silver dropped 0.3% or $0.08, closing at $17.28.
In Asia, bullion in Singapore for immediate delivery moved sideways and this continued in European trading until a sudden spike saw gold suddenly rise in the few minutes before the gold fix. Gold rose from $1,263 per ounce at 1027 (London time) to $1,271.40 per ounce at 1030 London time.
Gold has since retraced some of the gains seen at the fix but is up 0.6 percent this morning, regaining some of the 1.2% price fall yesterday. Risk aversion is back and European equities have fallen after initial gains.
Gold is holding comfortably above its 200-day moving average at $1,252 per ounce. Concerns that the Greek government may not drop calls for a write-off of some of its foreign debt remain which should support gold.
As will geopolitical risk in the Middle East and Ukraine and very robust Chinese demand ahead of the Chinese Lunar New Year on February 19th. Volumes for the Shanghai Gold Exchange’s (SGE) benchmark spot contract climbed to a seven-week high today and premiums remain healthy.
Silver is 1% higher, while the platinum group metals of platinum and palladium were both about 0.6 percent higher.
Gold gained 8.4 percent in January, in part as uncertainty over Greece’s membership of the euro zone and ECB QE led to haven demand.
Gold and silver were the top performing assets in January and we expect this outperformance to continue in 2015.
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I'm sorry this just hasen't been possible. There is overwhelming precedent the US Central Bank will not under any circumstances allow gold to take over the doller reserve currency. Comex is complicit and allows management of gold price as a national interest. What we don't know is their target price and can only speculate that it would be close to their comfort value of $800. per once.
Middle East conflagration. Israel strikes soon to be nuked Iran. Iran strikes back hard with aid of Russia. Israel nukes Iran. Oil goes to $200/Brl. Gold and Silver go Stratospheric. Dollar tanks. leads to WWIII?
Russia attach Israel? Very improbable scenario IMHO.
fertile cresant-the big one over ideals and oil. everybody with a interest will join in. nobody with power will actually die. tinder box ready to flame on. i see smoke, ha...
want to make 30 percent? huh, oil my friend-start dollar cost averaging in now.
buy a thou a week, hun a week, whatever your budget and lets chat at yr end...
no fucking brainer...
starting to wonder why anybody gives him airtime.
all these pundits make me fucking want to puke.
and the little poney tail, get fucking real...
Part of the SCAM was exposed when the SNB stopped supporting it.
I like Marc Faber. He's ahead of his time, and has been for a while now.
Problem is, the average investor/wealth accumulator will be destitute by the time he's right.
Just that someone says something doesn't mean you have to believe it, act upon it , or dispute it....that's what (use to) makes America great.
OMG who still pays attention to what this moron says? Even a broken clock is right twice a day. He keeps hammering on the same issue until some day he gets right. Unreal!!
30% move in one year? That would be nice but I very much doubt it. I do like Marc Faber, he makes his clients money and speaks out about TBTF banks but I think gold will decline further this year.
Hello, my name is Marc Faaaaaber and I sound like a stuck record.
The western oligarchs may soon have their political minions and spin doctors declare once again that holding physical gold is “hoarding physical gold, a practice that is unpatriotic, terroristic and illegal”.
More “Just Us” coming to a corrupt nation near you.
Never forget: http://en.wikipedia.org/wiki/Executive_Order_6102
In the West, holding physical gold is seen as archaic, thus few really HAVE significant physical gold holdings. One very good reason why confiscation is unlikely. The big holders almost always have 'paper trails', since they buy larger amounts through the official sources. If there is any kind of confiscation, those guys will be first.
But there is a LOT of gold circulating out there...even here in the US. It's in the form of jewelry, electronic scrap, gold-filled and plated this and that...one just has to know where and how to collect it. A bit of home-refining capability helps too, and that is also out there.
So, if it ever gets to that, the majority of gold will be in private, untraceable hands, and people with the know-how to extract it from unconventional sources will be in high demand.
So, if that happens, I expect to return to full-time work, put in a lot of overtime...
Will travel...:-) Hit me up when that pile of scrap gets about waist-high, and we'll see what we can get out of that for you.
Someone remind me of the time Faber indicated the FED was a BUY and Gold a SELL?
What's that? Oh, right, NEVAH. ;-)
Marc Faber is the the actor on "Goldmember" with the funny accent.
".......... yada......2015 may be the year...."
....may not b, too.
I don't know that I'm the first one to make this prediction, not that it matters but it would 'feel me better' if I was.
Comte Prediction for Gold price at the end of today, next month, and 12/31/15: write this down and see if I'm right.
"I don't know what it will be. Not even an hour from now".
More lies about Indian gold imports
http://www.bullionbullscanada.com/bulletin-boards/12-gold-a-silver-talk/...
Gold is over priced, so I'll just buy some more silver.
I really like Comstock Mining (NYSE: LODE). They are based in Nevada and are sitting on 92 tonnes of gold reserves and have only explored 10% of their land holdings.
Huge potential if what Marc Faber says is correct.
What's the quality of their ore in g/ton?
What is their all in sustained cost of production per ounce?
Are they financed with how much debt?
They dont have much debt. I think its all financed through the company Auramet.
Their cost to produce 1 oz in like $850 and declining every quarter.
The company is in good shape financially. They have good management.
Hes been saying that every year since 1985. Someday he may be right. May he live to see it.
He has been right.... MANY of those years.
Faber is near Alzheimer and Parkinson.
who wants to listen to this old timer ?
Goldcore is an idiot.
Agreed. It's almost as if *GASP* they have an AGENDA!!!
They're not selling anything, are they?
Marc Faber: short biotechs
Robert Fitzwilson: buy biotechs
http://kingworldnews.com/panic-markets-world-heads-full-blown-depression/
excert of actual phone conversation:
Ring Ring, Comex trading floor..
Hi my name is Ben Bernanke I would like 100 tons of AU please, and while i dont have cash i do have UST bonds, which i can offer at a slight discount, does that sound alright..
okay Mr Bernanke, do you the security code on the back of your credit card? just kidding..
Ring Ring, White House Barry Hussein speaking
Good news Mr President, we just went on the gold standard. You can run for a third term
Good work, man this job is easy
In just two weeks, China has imported six times more gold than the COMEX even claims to have as deliverable inventory!
Provable links please.
https://www.bullionstar.com/blog/koos-jansen/boom-sge-withdrawals-week-3...
The same Mark Faber who said gold had bottomed out at $1600?
Marc Faber is no longer relevant.
Marc Faber has a ponytail?
Come on. Give me a break. Who is supposed to believe him now?
At least he doesn't have a bowtie.
Excellent interview. Seems inevitabel PMs are going sky high but timing is difficult given the massive CB manipulations across the globe. At some point, the proverbial straw will break the camel's back and PMs in most currencies will rise rapidly as the currencies devalue and correct sharply. We already see this in many places like venezuela, Argentina, and somewhat in Chile.
Also interesting to read the comments on this article. Is it time for a ZH reader contrarian indicator?
the world is slowing down, check
the cbs are printing to out do each other to devalue their currency, check
stwaks go up when this happens, check
gold gets monkey hammered by paper manipulation, check
buy gold on above three assumptions, hmmm
maybe some gold as insurance, although i hate fucking insurance with a passion...
so buy it up dude, good luck with that...
30 percent, hmmm. the fucking ptb would have lost control if that happens, then i want other stuffs moar like;ly to get me thru a day...
When PMs are being monkey-hammered by paper manipulation is EXACTLY when I want to buy. I don't understand your logic.
opportunity cost, utility, pursuit of best use today!
So what's the better bet right now in your opinion?