Invest In Gold Now As Stock Market To Crash – Faber

GoldCore's picture

Invest In Gold Now As Stock Market To Crash – Faber

Marc Faber, editor of the “Gloom, Doom & Boom Report,” has advised investors that now is a good time to invest in gold  because stocks will crash over 40% and the world is on the verge of a new liquidity and debt crisis.

Gold_Faber

Faber says investors would be prudent to diversify into safe haven in gold bullion which has risen 3% this year and is currently at $1,096 an ounce.

He recently told MarketWatch that the stock-market downturn could result in stocks hitting lows not seen in five years.

Faber warns that the S&P 500, which fell to 1,881 yesterday, could drop to its 2011 low below 1,200.

“According to FactSet data, that would be 1,099.23, set that October. Faber referred to that outcome, a more-than-40% plunge in the broad stock-market benchmark, as his ‘medium bearish’ scenario. His most bearish prognostication envisages the S&P 500 falling back to its 2009 nadir, which FactSet data put at 676.53,” MarketWatch reported.

“The main factor is diminishing global liquidity because of the decline in oil prices.” A rapid appreciation of the U.S. dollar may send Brent oil as low as $20 a barrel, according to Morgan Stanley and other analysts.

Crude oil (WTI) fell sharply to below $28 a barrel today on deepening concerns about oversupply, fragile demand from China and the slowing global economy.

Faber has correctly warned that the price of crude oil indicates a shrinking global economy. “When oil prices increase, it basically is a consequence of expanding [global] liquidity,” Faber said, so inversely, this unrelenting fall suggests contraction.

Faber cautioned that the situation could change because of global central bank tactics. “It is impossible to make predictions because we don’t know the extent of the madness of central bankers,” he said. He has been a harsh critic of the quantitative easing measures of the Federal Reserve and other global central banks.

He has warned that their zero percent interest policies have resulted in the world becoming vastly more indebted and therefore more vulnerable to a new and worse global debt crisis.

Faber favours allocated and segregated coin and bar storage in Singapore.

Watch Marc Faber Webinar Video on Storing Gold in Singapore 

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superdave's picture

If you don't hold it, you don't own it!  Simple as that!

Spungo's picture

I don't understand how gold would protect one from a crash. Gold is a bet against paper money and government bonds. The world still seems to have a remarkable amount of faith in the US government, so short duration US bonds are still the place to be. 

Eman Laer's picture

Faber called the March 2009 bottom within a few days of the low, and moved his clients into stocks.

kuro_neko's picture

Buy Gold now !!! otherwise you have no chance to participate in the Gold Bear Market !!!! 

Do your duty and lose money like everybody else !

luna_man's picture

 

 

To be so lucky...To own enough GOLD, to even think about storage.

 

wonder the storage cost for my two 1oz pieces

Moe Howard's picture

I'll store it for you at my personal Central Bank of Moe for a slight fee. No monthly statements, however.

Amalgamated Tang's picture

He's not talking to me either, but the point he/the article was making was: buy gold before the market crashes 40%, not where to store it. If the crash is that big and it comes as early as March, as some ZHers suggest, you won't need to store it, you'll be using it.

Hongcha's picture

Here we go again.  Storing gold offshore.  Right.  Then go get It when the SHTF.  Um-hmmm.  Then get it back through customs and into the States.  Okay.  Casey et al.  must be getting their asses handed to them.  Go ahead and downarrow like you did last time I blasted this foolish strategy.

Amerika is a large place.  Buy it here for cash and bury it here.  No one is coming for it.  They will be too busy fighting in the streets for scraps of meat and dropping their guts from drinking toilet water and eating dog food.  Don't get me started on what's coming, people.

 

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Hongcha Jan 21, 2016 7:35 PM

Store your gold offshore and they give you a piece of paper with words written on it stating: "trust us, we have your gold and it is safe with us."  How is that piece of paper different than paper gold?

giggler321's picture

storage?? ofcourse there's always, your friend, Mohammad Managing Director of Gold AE.

Storage fees paid for by Gold AE for 1year guaranteed and then we're out the window with your stuff and King (whatever his name is today) had nothing to do with it, honest...

Faber's word is a good as the next guy pushing this stuff on ZH - history never repeats!  It's your last chance!  Tomorrow does not exist so buy it now!

Take Gold AE, if someone asked you, would you like to buy X and store it here (before what happened), you'd probably say yes.  Esp. with articles like this on ZH.  At that same time, had you bought someting else, anything, a ring for your chick, BTC?  sh** even apple stock, you'd have something now unlike the poor Folk who lost out.  I bet most would trade bog roll in argentina then take another storage sale.

OverTheHedge's picture

I completely agree with you, unless you live in a country that you might want to run away from, in a hurry. Note that Germany & Denmark are now confiscating refugee assets, so crossing borders with gold might get tricky . We can't all live in a vast country with a tiny population, and no prospect of marauding hordes pouring over the hill behind your house.

I own gold, but I don't have it at home/lake/back-yard - I have it in the countries that I hope to run away to. I also don't have faith that, should the system fold, I will ever see it again. What I don't fancy, is running, with a back-pack full of shiny - too much temptation for the other starving refugees.

83_vf_1100_c's picture

'Essential Guide to Storing Gold in (anywhere) for the little guy'

1 - Buy a safe, put gold in it.

2 - Buy a cheap boat. Put gold in it. Row out and have a mishap. Mark it on your map.

3 - Capped buried PVC pipe is is another popular method.

  Storing your 2 tons of gold in Singapore may make some sort of sense for the 1% however in a SHTF economopocalypse with zombies and nukes popping... some white guy in Singapore will play hell withdrawing it. jmo

One-Eyed-Thong's picture
One-Eyed-Thong (not verified) Jan 21, 2016 11:39 AM

just got my statement in the mail today... i own lots of gold... according to the statement i got in the mail today

12357111317's picture

Scientist comes to ZH and the trolls lash out.

Austrian economist comes to ZH and the trolls lash out.

dexter_morgan's picture

Wow, and you figgered all that out in 4 short weeks here. Way to go Einstein.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) dexter_morgan Jan 21, 2016 7:37 PM

Hey! Einstein was a scientist!...

o r c k's picture

Anti-facial hair trolls come to ZH and lash out.

Aubiekong's picture

And if it ever truly hits the fan what do you think the guards who work at this vault storage company are going to do with your gold?  Feed their families maybe...

12357111317's picture

Again, I think Faber has clients from all over the world, and has been working in Southeast Asia for a while, so keeping gold in Singapore, which is run by the expatriate Chinese, who are very independent, might make sense for him, and for some of them.

mtl4's picture

When was the last time Faber was right on the markets?!  

 

Declaring zero interest rates are bad, pure genius I tell you.

SunRise's picture

8 of every 10 times

12357111317's picture

I'm not an economist or a precog, but hasn't Faber been right on the markets recently?

mtl4's picture

He's always right except for when he's not it's some sort of market manipulation, classic propaganda.

12357111317's picture

I think Faber actually manages/invests money, and Faber does not have a seat at the Fed Discount Window, so Faber has to make money or he will lose his customers. 

I think propagandists pretend to be players, but independent traders like Faber actually are players.

I don't think Faber has enough "clout" to manipulate any markets.

In any event, why so down on an Austrian economist?

Lost in translation's picture

Casey says to store PM outside the US, too.

But what happens when the Empire of Chaos and Death ignites a war, and the country of storage designates Americans as "the enemy" and nationalizes their assets?

Seems to me Singapore has a U.S. military base there, too.  IIRC.

12357111317's picture

Singapore is in a position to appeal to China, and also to Japan, if the USA attempts to steal the gold which people all over the world store in Singapore.  Gaddafi and Hussein had only been around a few decades, and had not built up a powerful network to protect their gold, but the expatriate Chinese have been working on their networks for hundreds, if not thousands, of years.

Lost in translation's picture

Excellent points, had not considered these aspects.  Thanks for correcting me.

TeaClipper's picture

No thanks, I like to spend time stroking mine ):O)

Buster Cherry's picture

Singapore is nice and all, but the commute is a bitch!

lester1's picture

Storing gold in Singapore?

 

No thanks!

 

I have a basement vault, with a security system, and German Shepherd dogs, and several guns to protect my stash.

Pickleton's picture

That are all rendered moot immediately upon some jack boot getting the address on the warrant wrong.

ToSoft4Truth's picture

"Only Terrorists store gold in their homes."

 

XAVER™ 100 will make sure none are in your walls. 
wareco's picture

"It is impossible to make predictions because we don’t know the extent of the madness of central bankers."  Bam!  There is his escape clause.  If the S&P tanks, he says I told you so.  If it doesn't, hey I said things could change.  Another useless prognosticator. 

Pickleton's picture

"Another useless prognosticator. "

 

Well, since fotune telling and predictions are bullshit, that's makes them ALL useless prognosticators.

Moe Howard's picture

My chance of getting gold from Singapore in a crisis are close to zero. Thanks anyway.

StateofFraud's picture

Agreed. But, a lot here in hand and a little there and elsewhere is a good strategy.

JohnGaltsChild's picture

Very true........be seeing you.

XXL66's picture

sure, if you don't suffer from alzheimer, like Faber.

RaceToTheBottom's picture

Long tin cans with gold coins in them.

Never One Roach's picture

Beneath the couch cushions ain't good enuff for you?

GubbermintWorker's picture

"Faber favours allocated and segregated coin and bar storage in Singapore."........Well, of course he does as he's wealthy enough to afford that. Me, I'll stick with the bank of Mother Earth for storage.

llessur_one's picture

Faber favours allocated and segregated coin and bar storage in Singapore

Then Faber suggests when the SHTF getting in your private jet and flying to Singapore heavily armed to claim your gold.

For those of you without private jets Faber suggests bying a rowboat and rowing to Singapore heavily armed to claim your gold.

Faber is an ass.

thinkmoretalkless's picture

Who cares Faber can go to Singapore I'll stay out here in the country where I can see someone approaching a half a mile away and within range with a few cans of food, plenty of ammo and some coins.

DeadFred's picture

Faber wasn't talking to you. I suspect he doesn't know (or care) that you or I exist. I kind of like the guy but he isn't one of the 'folk'

llessur_one's picture

Yeah Farber was talking the .1% and from looking at his glamour shot I stand by my statement.

The Saint's picture
The Saint (not verified) llessur_one Jan 21, 2016 10:32 AM

Has Marc Faber EVER said the stock market is a buy?  I don't recall him ever being bullish on stocks but I could be wrong.

Eman Laer's picture

Faber called the March 2009 bottom within a few days of the low, and moved his clients into stocks. 

https://www.creditwritedowns.com/2009/03/marc-faber-makes-bullish-commen...