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"Great Optimist" Faber Says "I Added To My Gold Position"

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"Great Optimist" Faber Says "I Added To My Gold Position"

Marc Faber, Swiss economist, forecaster, renowned investor and the original Dr. Doom, may need a new nickname.

In an interview on CNBC’s “Trading Nation,” the Gloom, Boom & Doom Report editor revealed he may not be as bearish as some may think and that he is actually a “great optimist.”

Marc Faber on one of his five motorcycles

“I always tell people, ‘I am a great optimist … because one of the most dangerous things to do is to drive motorcycles in Thailand and I have five motorcycles.”

The blunt-spoken, truth-telling Faber may have helped people understand that one may be worried about the economic outlook and bearish on stocks and other markets and yet be an optimist about life and all the wonderful things it has to offer and on the human spirit and our capacity to overcome even the worst financial and economic crashes.

On the risks of being a perma bull, he warned:

“You can’t be always sitting there and saying ‘Stocks always go up, real estate always goes up’ and so forth and so on”.  “You could have zero interest rates and stocks go down – as they’ve done in Japan until three years ago. Even at these very low interest rates, something can happen and dampen the enthusiasm for equities.”

Faber admits that he is bearish on the global economy.

 “I’m most gloomy about the prospects of the global economy, but it doesn’t mean that markets will go down,” he told CNBC.  But on the other hand, he says “you have the mad professors at central banks around the world who think that because of a weakening economy they have to do more [quantitative easing].”

On a more positive note, Faber says he is most optimistic about the Indochinese region, which he likens to Los Angeles.

“Provided there is peace and not tensions that explode, I think the region of Indochina is right now like Newport Beach and Huntington Beach and Manhattan Beach, where I’m at right now,” he told CNBC. “It’s a boom region, Indochina. It includes Vietnam, Cambodia, Laos, Thailand – which is not booming right now – Myanmar, Malaysia, Singapore.”

According to Faber, this region could “easily” grow at 6%-8% per annum for the next 10 years as long as there is peace.

“Cambodian exports were up 20% this year,” he added. “Vietnamese exports are up approximately 10% this year. So relative to the rest of the world, this is a boom region.”

Faber said he would invest in both this region’s stock and real estate markets. Faber believes that U.S. equities are fully priced. And while he says it’s possible that indexes could make a new high, he thinks that the majority of shares would not.

When asked if he’d bought any U.S. stocks recently, Faber said he’s done very little.

“The only thing I’ve really done recently is I added to my gold position about two months ago, and I bought some gold-related equities.”  “But other than that, I’ve done very little because I believe that in this extreme volatility where markets suddenly drop 10%, individual stocks drop 10% or 20% in one day – it’s a very difficult environment to make a lot of money unless you take huge risks.”

The shrewd investment adviser is  staunch advocate of owning physical gold bullion which he describes as being a way to become “your own central bank.”  

He believes an allocation to bullion is vital financial insurance and that the biggest question is where to store your gold? He believes that Singapore is the safest place to own gold in the world today.


Watch the complete interview with Marc Faber on CNBC

Marc Faber Webinar on Storing Gold in Singapore

Essential Guide To Storing Gold In Singapore

 

DAILY PRICES
Today’s Gold Prices: USD 1118.00, EURO  1024.09 and GBP 724.99 per ounce.
Yesterday’s Gold Prices: USD 1130.90, EURO 1029.82 and GBP 733.95 per ounce.
(LBMA AM)

Gold lost $16.60 yesterday to close at $1117.70.  Silver closed at $15.29, down $0.14. Platinum lost $13 to $961.

 

IMPORTANT NEWS

Gold Climbs From Lowest in a Month Before Yellen Set to Speak – Bloomberg

Gold sees minor-recovery ahead of US jobs, Yellen – FXStreet.com

PM Narendra Modi to launch ‘India gold coin’, other schemes on November 6 – Business Today

Investors most relaxed in two years over Fed ‘liftoff’: survey – Reuters

Standard Chartered shares sink on shock quarterly loss – BBC

 

IMPORTANT ANALYSIS

Russia is on a gold buying spree – should we be worried? – MoneyWeek

Firms Vying to Help Texas Build Gold Depository – The Texas Tribune

Gold investors foolishly think the yellow metal will rally – MarketWatch

These Charts Suggest the Market May Have Had Enough of Share Buybacks – Bloomberg

“Big Problem” with Stock Rally – CNBC

 

Read more News & Commentary on GoldCore.com

 

 

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Wed, 11/04/2015 - 15:44 | 6749831 Panafrican Funk...
Panafrican Funktron Robot's picture

Gold is a currency independent store of value.  That's all it is and ever will be.  People who use it as a speculative vehicle or "get rich quick" scheme are fools.  I recommend a 10-30%+ allocation priced in your local currency, depending on where you live, to ensure at least some of your productive labor isn't stolen via a debasement scenario that outstrips productive asset valuation.  Consider the increase in the Federal Reserve money supply relative to stocks or bonds, and you'll immediately see the reason for gold hedging.

Wed, 11/04/2015 - 12:44 | 6748987 TheBeatles
TheBeatles's picture

1oz Silver American Eagles €12 @ EurGold

 

 https://www.eurgold.eu/silver/silver-coins/american-eagle-1oz-silver-coi...

Wed, 11/04/2015 - 15:33 | 6749770 pathosattrition
pathosattrition's picture

I've never had an order filled, and they always cancel when the exchange rate favors them.

Wed, 11/04/2015 - 15:33 | 6749769 pathosattrition
pathosattrition's picture

I've never had an order filled, and they always cancel when the exchange rate favors them.

Wed, 11/04/2015 - 12:40 | 6748966 the grateful un...
the grateful unemployed's picture

Manhattan Beach has been taken over by Communists, dude say it ain't so

Wed, 11/04/2015 - 12:29 | 6748922 ramgold2206
ramgold2206's picture

if you trust in gold, understand gold, and have a desire to own gold ... why not promote it and earn gold ...

 

www.teamramgold.com/about-us

Wed, 11/04/2015 - 11:57 | 6748776 cpgone
cpgone's picture

Lost lots of money listening to Faber.

Wed, 11/04/2015 - 13:15 | 6749141 WernerHeisenberg
WernerHeisenberg's picture

Good for Faber.  I had to sell some of my gold this week to pay my rent.

Wed, 11/04/2015 - 10:32 | 6748412 Zero-Hegemon
Zero-Hegemon's picture

Every time gold starts closing in on $1200 the monkey hammer comes out

Wed, 11/04/2015 - 10:32 | 6748410 ghostzapper
ghostzapper's picture

Gold is not scarce.  Bitcoin is scarce.

USD working on pretty substantial breakout here.  

Wed, 11/04/2015 - 15:50 | 6749860 stacking12321
stacking12321's picture

seems to be a plainly false statement, but what is your reasoning, for saying gold is not scarce?

Wed, 11/04/2015 - 09:48 | 6748184 InnVestuhrr
InnVestuhrr's picture

I am adding to my US Treasury positions, collecting interest, if TSHTF my Treasuries will soar in price and i will sell for a huge profit, and if not, then I get back par value.

Wed, 11/04/2015 - 15:26 | 6749736 Tarzan
Tarzan's picture

"and if not, then I get back par value."

Par value denominated in depreciating dollars?

Wed, 11/04/2015 - 21:31 | 6751670 InnVestuhrr
InnVestuhrr's picture

The dollar does what it does relative to all other currencies regardless of how I invest my own dollars - I have no control over that.

But my investment is producing dollars at the rate of 3%, which pays all of my living expenses, PLUS I get par value back at maturity and have the potential for capital appreciation.

At what rate is your shiny lead producing - or losing - dollars ?

Wed, 11/04/2015 - 08:16 | 6747929 FlacoGee
FlacoGee's picture

Sell All Rallies.

Gold is going well below $1000.

Wed, 11/04/2015 - 15:31 | 6749762 Tarzan
Tarzan's picture

"Sell All Rallies."

.. in paper Gold and buy the dips in physical

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