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“No Safe Assets Anymore” So “Focus On Precious Metals” – Faber

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DAILY PRICES
Today’s Gold Prices: USD1130.05, EUR 1005.88 and GBP 739.63 per ounce.
Yesterday’s Gold Prices: USD 1140.00, EUR 1010.73 and GBP 746.46 per ounce.
(LBMA AM)

“No Safe Assets Anymore” So “Focus On Precious Metals” – Faber

Respected economist and historian and the editor of the ‘Gloom, Boom & Doom Report’ Marc Faber warned on Bloomberg TV’s Market Makers yesterday that there are now “no safe assets” including deposits and said that he is focusing “on precious metals.”

In another informative and interesting interview, Faber spoke about dangerous central bank policies and the stupidity of QE, the cause of inequality including competitive currency devaluations and warned that even deposits are no longer safe.

Marc Faber – There Is No Safe Asset Anymore (via Bloomberg TV)

“I think that because of modern central banking and repeated interventions with monetary policy, in other words, with QE, all around the world by central banks there is no safe asset anymore. When I grew up in the ’50s it was safe to put your money in the bank on deposit. The yields were low, but it was safe.”

“But nowadays, you don’t know what will happen next in terms of purchasing power of money. What we know is that it’s going down.”

He was trenchant in his criticism of central bank monetary policies:

“In my humble book of economics, wealth is being created through, essentially, a mixture of capital spending, and land and labor. And if these three production factors are used efficiently, it then creates a prosperous society, as America became prosperous from its humble beginnings in 1800, or thereabout, to the 1960s, ’70s. But it’s ludicrous to believe that you will create prosperity in a system by printing money. That is economic sophism at its best.”

Faber said that investors should “focus on precious metals” and gold and precious metal mining shares.

“I would rather focus on precious metals, gold, silver, platinum because they do not depend on the industrial demand as much as base metals, as industrial commodities.”

Marc Faber is a long-time advocate of owning physical gold which action he describes as being “your own central bank” and he believes that Singapore is the safest place to store gold internationally.

IMPORTANT NEWS

Global stocks enjoy relief rally ahead of ECB, but investors wary – Reuters
Five Chinese ships in Bering Sea as Obama visits Alaska – Reuters
In Dramatic Escalation, China Sends Five Navy Ships Off Alaska Coast For First Time Ever – Zero Hedge
Gold slips on firmer dollar; U.S. jobs data eyed for cues – Reuters
Gold Holds Loss as Investors Seek Fed Rate Clues From Jobs Data – Bloomberg

IMPORTANT COMMENTARY

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Watch: Marc Faber Video on Storing Gold in Singapore
Download: Essential Guide To Storing Gold In Singapore
Downnload: Essential Guide To Storing Gold Offshore


Essential Guide To Storing Gold Offshore

 

 

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Thu, 09/03/2015 - 11:17 | 6504427 CoolClo
CoolClo's picture

US Dollar (FRN) is doing fine... Still looking for Gold to test 681 (GLD 66), after a dead cat bounce.. 

Thu, 09/03/2015 - 09:49 | 6504039 TongueStun
TongueStun's picture

paper money has been used for 6000 years......oh wait.....

Thu, 09/03/2015 - 09:32 | 6503948 BullishBear94
BullishBear94's picture

Sure Faber.  Own physical gold and get robbed by armed theifs.  Hell no.

Thu, 09/03/2015 - 11:11 | 6504397 ramgold2206
ramgold2206's picture

@bullishbear84 .... spoken like a true, I want to say idiot, but thats insulting to you.. instead i'll give you the benefit of the doubt because you are young and maybe dont yet understand what is really going on in this world...

 

 

Thu, 09/03/2015 - 10:01 | 6504092 Smiddywesson
Smiddywesson's picture

That logic applies to everything else, therefore it lends nothing to the discussion.

Gold and silver prices are manipulated, so the last thing I'd recommend to someone who knows nothing about central banking and fiat currencies would be to invest all they have in something that's going to give them heart attacks. 

Most people don't have a lot of spare wealth to protect.  Therefore, I have to believe guns are a better investment for the average Joe.  They hold their value, can appreciate in value, and have a great deal of utility over the barbarous relic if someone comes a knockin.

 

Nothing against you gold bugs, but practical is practical, most of us are not sitting on tens of thousands that need to be protected.

Thu, 09/03/2015 - 10:01 | 6504091 Smiddywesson
Smiddywesson's picture

That logic applies to everything else, therefore it lends nothing to the discussion.

Gold and silver prices are manipulated, so the last thing I'd recommend to someone who knows nothing about central banking and fiat currencies would be to invest all they have in something that's going to give them heart attacks. 

Most people don't have a lot of spare wealth to protect.  Therefore, I have to believe guns are a better investment for the average Joe.  They hold their value, can appreciate in value, and have a great deal of utility over the barbarous relic if someone comes a knockin.

 

Nothing against you gold bugs, but practical is practical, most of us are not sitting on tens of thousands that need to be protected.

Thu, 09/03/2015 - 10:49 | 6504304 BullishBear94
BullishBear94's picture

So i buy some guns.  Then what?  How many guns do I buy?  100 guns?  Is that your retirement 'plan'?

Thu, 09/03/2015 - 09:50 | 6504045 TongueStun
TongueStun's picture

The ifs can't rob you of paper money, neither can the banks

Thu, 09/03/2015 - 09:48 | 6504035 Pickleton
Pickleton's picture

So your plan is to own currency and .... get robbed by government and corporate thieves.  You're a genius.  Yea, not so much.

Thu, 09/03/2015 - 10:45 | 6504282 BullishBear94
BullishBear94's picture

So what is your plan Pickleton?

My plan is to continue to invest in index funds since i'm 30 years away from retirement.

Thu, 09/03/2015 - 11:18 | 6504434 messymerry
messymerry's picture

Your plans are meaningless, you won't recognize the world thirty years from now. 

Invest as you can in things that are real like skills, a place you feel safe, and family.

Wealth is on the way out.  Everybody is beginning to see money for what it is...and what kind of slimeballs are attracted to it.

In thirty years there may be no money at all...

;-D

Thu, 09/03/2015 - 09:18 | 6503876 BullishBear94
BullishBear94's picture

Another doom and gloom prophet.

This dude has been saying the market was going to collapse since 2009.  If I listen to him I would have missed out on a massive bull run the last 6 years.  I'm glad I didn't fall for his doom and gloom.

Even if the market corrects this year I'll still be better off than if I kept my money in a bank or bought gold.  How many of these fools don't realize its about the LONG TERM.  Keep your money in smart investments for 20-30 years and watch it grow.  

Or react to each doom and gloom prophet and see your cash desolve.

Sat, 09/05/2015 - 23:14 | 6514548 cheka
cheka's picture

during last drama jim rogers gave best bit of advice from any of these characters - DONT SHORT ANYTHING

debasement can/will drive up any/everything...no matter how sh-tty

Thu, 09/03/2015 - 10:52 | 6504297 silentboom
silentboom's picture

Gold was up like 13 years in a row prior to this.

 

Edit: ok 12 years.    http://www.mining.com/gold-makes-it-12-years-in-a-row-with-7-gain-in-201...

Thu, 09/03/2015 - 10:22 | 6504050 TongueStun
TongueStun's picture

What stocks do you own?

 

Looks like the stockroach scurried away when the lights came on

Thu, 09/03/2015 - 10:47 | 6504292 BullishBear94
BullishBear94's picture

Mostly index funds because of low fees.  I'm 30 years from retirement so dips here and there don't matter.

I do own Apple stock from a few years back.  Bought it at about $70 a share.

Thu, 09/03/2015 - 09:29 | 6503934 ToSoft4Truth
ToSoft4Truth's picture

Gold is only a good asset if a person intends on fleeing the country.   A payday advance store has a much greater return. 

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