• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Faber: Own Gold – “Don’t Store It In The U.S., The Fed Will Take It Away From You One Day”

Tyler Durden's picture




 

From GoldCore Gold Buillion

Faber: Own Gold – “Don’t Store It In The U.S., The Fed Will Take It Away From You One Day”

Today’s AM fix was USD 1,767.25, EUR 1,349.36 and GBP 1,089.42 per ounce.
Friday’s AM fix was USD 1,772.50, EUR 1,359.70 and GBP 1,093.53 per ounce.

Silver is trading at $34.52/oz, €26.44/oz and £21.36/oz. Platinum is trading at $1,699.00/oz, palladium at $685.50/oz and rhodium at $1,050/oz.

Gold rose $5.30 or 0.3% in New York and closed at $1,771.60. Silver climbed to $34.91 then dropped before bouncing back higher, and finished with a loss of 0.06%. Gold was up 2.02% for the week and silver another 3% for the week.
 
Currency Table – (Bloomberg)

Gold is slightly weaker today but hovering near a 7 month high, as the US Fed’s announcement of QE3 has led to some investors diversifying into bullion as a hedge against inflation risk.

The yellow metal rose as high as $1,777.51 on Friday, a high not seen since February 2012 when it hit this year’s peak.  Last September 2011, it reached a nominal high of nearly $1,920/oz.

QE3 will allow the Fed to print dollars to buy $40 billion worth of bonds every single month for the foreseeable future. Dollars, euros and pounds are being made to grow on trees – the precious metals do not.

November marks the festival season of Diwali in India, the Hindu festival of lights and demand has picked up as both jewellers and investors scaled up purchases before prices rise any further.

Marc Faber, one of the few analysts, to have predicted the current crisis correctly and to have protected his clients in the process, remains very bullish on gold.

In another excellent Bloomberg interview, Faber said that “the trend for gold prices will be steady but the trend for the dollar and other currencies will be down. So in other words gold in dollar terms will trend higher.”


Gold in Dollars, Euros, Pounds, Norwegian Krone – 1 Year

“How high it will go, you will have to call Mr Bernanke and at the Fed there are other people who actually make Mr Bernanke look like a hawk and so they are going to print money.”

Faber is on record as to the importance of owning physical gold and he again warned about the importance of owning gold but not storing it in the U.S.


Gold in Dollars, Euros, Pounds, Norwegian Krone – 5 Year

“You ought to own some gold but don’t store it in the U.S., the Fed will take it away from you one day,” Faber astutely noted.

He said that Bernanke is a money printer and this could lead to massive inflation and the Dow Jones at 20,000, 50,000 or 10 million.

Faber cheerily predicted that the “the Federal Reserve’s monetary policy will destroy the world” and “eventually we will have a systemic crisis and everything will collapse.” 

Faber’s long term historical financial and economic perspective remains astute.

The full interview is a must see and can be seen in our commentary section today.

NEWSWIRE
(Bloomberg) -- Fed’s QE3 Signals Gold Rise to $2,000 by March: Chart of the Day

Gold may surge to a record $2,000 an ounce in the next six months as the Federal Reserve’s third attempt at economic stimulus stokes concern that inflation will accelerate, according to TD Securities Inc.

The CHART OF THE DAY shows that gold prices have moved almost in tandem with inflation expectations, which jumped to the highest in 16 months after the Fed announced a third round of bond buying. Investors may increase purchases of the precious metal to protect against rising consumer prices, said Bart Melek, the Toronto-based head of commodity strategy at TD Securities.

Gold soared 70 percent from the end of December 2008 to June 2011 as the Fed kept borrowing costs at a record low and bought $2.3 trillion of bonds in two rounds of so-called quantitative easing. 

On Sept. 13, the central bank said it will expand holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month and keep the benchmark interest rate near zero “at least through mid-2015.”

“We are running the risk of inflation because of this highly accommodative monetary policy,” said Melek, the third- most accurate price forecaster for precious metals tracked by Bloomberg during the eight quarters through June 30. “The concern is that even as velocity in the banking system picks up, the Fed may not drain away liquidity fast enough.”

On Sept. 14, inflation expectations as measured by the break-even rate for five-year Treasury Inflation Protected Securities reached the highest since May 4, 2011. Gold futures climbed 1.9 percent last week to $1,772.70 on the Comex in New York. The precious metal surged to an all-time high of $1,923.70 on Sept. 6, 2011.

(Bloomberg) -- Credit Suisse Raises Gold Forecast to $1,850 an Ounce

Credit Suisse Group AG raised its gold forecast to $1,850 an ounce, according to a report from Nannette Hechler-Fayd’herbe, head of global financial markets research.

(Bloomberg) -- Gold Traders Increase Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators increased their net-long position in New York gold futures in the week ended Sept. 11, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 182,016 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 11,552 contracts, or 7 percent, from a week earlier. 

Gold futures rose this week, gaining 1.9 percent to $1,772.70 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 237,091 contracts, an increase of 17,705 contracts, or 8 percent, from the previous week. 

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices.

(Bloomberg) -- Silver Traders Trim Bets on Price Rise, CFTC Data Shows

Hedge-fund managers and other large speculators decreased their net-long position in New York silver futures in the week ended Sept. 11, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 31,482 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 948 contracts, or 3 percent, from a week earlier. 

Silver futures rose this week, gaining 2.9 percent to $34.66 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 47,272 contracts, an increase of 2,352 contracts, or 5 percent, from the previous week.

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices.

(Bloomberg) --  BNP Paribas Says Fed’s Low Rates to 2015 Delays Gold’s Peak
Gold’s peak will be delayed because of the Federal Reserve’s decision to keep interest rates low for longer, BNP Paribas SA said.

BNP Paribas kept its annual gold and palladium price forecasts, Anne-Laure Tremblay of the bank said in an e-mailed report today.

NEWS

Gold hovers near highest in almost seven months after Fed - Reuters

Bullish Wagers at 16-Month High as Citi Sees Gains - Bloomberg

Amplats to resume S.Africa operations on Tuesday - Reuters

Gold, silver rise in electronic trading – Market Watch

COMMENTARY
Video: Gold's Global Outlook: The Drivers of Its Rally - Bloomberg

Video: Don't Store Gold In U.S. - Fed Will Take It From You - Bloomberg

When will these bankers learn: Stock markets have nothing to do with the real economy – The Daily Mail

BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014... Leading To $3350 Gold And $190 Crude -  Zero Hedge

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Mon, 09/17/2012 - 08:06 | 2802622 GetZeeGold
GetZeeGold's picture

 

 

Top of the world ma!

http://www.youtube.com/watch?v=ZjVWORC3Wcc

Mon, 09/17/2012 - 09:12 | 2802818 Ruffcut
Ruffcut's picture

I only have silver and lead.

I also have some lead delivery systems.

Mon, 09/17/2012 - 09:17 | 2802828 BaBaBouy
BaBaBouy's picture

Keep It Safe.

 

GOLD To $50K ...

Mon, 09/17/2012 - 10:24 | 2803207 Overfed
Overfed's picture

Keep it secret. Keep it safe.

Mon, 09/17/2012 - 13:10 | 2803943 monoloco
monoloco's picture

Bank of Tupperware.

Mon, 09/17/2012 - 09:30 | 2802871 Watauga
Watauga's picture

We are talking about a government that already has decided to reach into all accounts, worldwide, of every American.  We should not pretend that this government won't pass a law that states, simply, that all physical gold held in any form and in any location, worldwide, by an American citizen, SHALL be turned over to the government.  Any American who does not turn over that gold will be guilty of violating the law, which likely will lead to imprisonment and seizure of all assets, at least until such time as the gold is turned over.  The government likely has, or can conjure up, fairly accurate records detailing all gold purchases done with anything but cash or in barter.  So, most gold purchases are known, or would become known, to the government.  Borders and sovereignty will have pose little constraint in the coming years.

Mon, 09/17/2012 - 09:36 | 2802893 Tinky
Tinky's picture

The problem with these arguments relating to possible gold confiscation is that that vast majority of wealth held in the form of gold is owned by the very same people who run and essentially own the Government. So, how likely is it that politicians are going to bite the very same hands that feed them?

Mon, 09/17/2012 - 11:43 | 2803624 donsluck
donsluck's picture

You imply that the upper crust is subject to the same laws as the rest of us. Silly.

Mon, 09/17/2012 - 09:52 | 2802993 Quinvarius
Quinvarius's picture

LOL.  It is so friggin hilarious when the gold shorts try to scare people with some confiscation baloney.  You do realize that they did not "confiscate" gold in the 30's, right?  It would have collapsed the system.  The government paid for it.

And they will take your AAPL stock along with all the other productive assets and company stocks long before they worry about gold.  That is what they have already been doing. 

Mon, 09/17/2012 - 10:26 | 2803221 JohnKozac
JohnKozac's picture

Aren't homicides against the law? Yet we have at least one murder a night in my town.

The law is only good when the people want to obey them.

Mon, 09/17/2012 - 10:50 | 2803337 tsx500
tsx500's picture

how about boating mishaps .... are those known to government ?

Tue, 09/18/2012 - 02:08 | 2806162 Tompooz
Tompooz's picture

No need. For boating accidents the burden of proof will be reversed.

Mon, 09/17/2012 - 08:09 | 2802630 GubbermintWorker
GubbermintWorker's picture

Well now, if I had the resources that Mr. Faber does that would be easy but, I don't. I'll keep my gold safe in the bank of mother earth and just say FUCK YOU to the FED!

Mon, 09/17/2012 - 08:35 | 2802708 Long-John-Silver
Long-John-Silver's picture

I keep mine in the lake my boat sank in after that horrible boating accident.

Mon, 09/17/2012 - 08:37 | 2802713 GetZeeGold
GetZeeGold's picture

 

 

....a moment of silence please.

 

Mon, 09/17/2012 - 10:26 | 2803220 Captain Benny
Captain Benny's picture

I operate a metal salvage business that will help you recover that sunken pirate booty without charge.   Please provide me with the lake name and approximate location and I'll add you to our que of jobs.   As you know, you meade drinking Zerohedgers have had lots of accidents lately and my team of goons^h^h^h^h^hdivers have been extremely busy.

Mon, 09/17/2012 - 10:48 | 2803318 otto skorzeny
otto skorzeny's picture

careful-the spanish govt is now claiming to be the owner of EVERY PIECE of gold and silver found on the ocean floor EVERYWHERE.

Mon, 09/17/2012 - 08:13 | 2802642 GetZeeGold
GetZeeGold's picture

 

 

Hey....I'm a Hun....not a dog.

 

Now I'm pissed....please give me the directions to your embassy.

 

Mon, 09/17/2012 - 08:19 | 2802667 HungrySeagull
HungrySeagull's picture

Schnell!

Another half breed Hun here. Damn did you step in it with that dog comment!

Mon, 09/17/2012 - 08:26 | 2802686 Yardfarmer
Yardfarmer's picture

they want your gold, they want your silver, they want your house, 401K, IRA, pensions. they want it all! hopefully all they'll get is your lead. haha.

Mon, 09/17/2012 - 23:50 | 2806033 Clashfan
Clashfan's picture

You should hear Jim Marrs talking to these kids on the radio.

http://www.youtube.com/user/ConspiracyDebates?v=ey-BBVikdyY

The contrast is amazing. Marrs gets on a rant about "bloated bureaucrats."

Mon, 09/17/2012 - 08:21 | 2802673 spankfish
spankfish's picture

That remark young man will bring the men driving the black suv's to your front door.

Mon, 09/17/2012 - 08:31 | 2802697 Vooter
Vooter's picture

We're all dogs now, bitch...

Mon, 09/17/2012 - 08:40 | 2802720 GetZeeGold
GetZeeGold's picture

 

 

If you had said bitchez.....you would have stuck the landing.

 

Not bad for a first try though.

 

Mon, 09/17/2012 - 09:43 | 2802921 Red Heeler
Red Heeler's picture

"Just bury the gold in the ground like the dog you are."

OK

Mon, 09/17/2012 - 08:10 | 2802633 Zer0head
Zer0head's picture

I saw that interview and I am pleased that Faber gets the air time, but Bloomberg is getting bad. Apart from the to be expected pro-obama bias, just this morning anchor Scarlett Foo comments on OWS with this statement:

 

"We do know that the protests are currently peaceful but the police (on orders from our boss) are restraining some protesters with (she says quietly) zipties,  and in other news. "

Mon, 09/17/2012 - 08:12 | 2802638 HD
HD's picture

I don't understand how everyone equates money printing with endless equity gains. Japan has been printing for 20 years - shouldn't their stocks be soaring to ever higher highs?

Mon, 09/17/2012 - 08:14 | 2802650 buzzsaw99
buzzsaw99's picture

shhhh

Mon, 09/17/2012 - 08:15 | 2802652 Winston Churchill
Winston Churchill's picture

They did soar for about 18 months if I remember correctly.

Then declined fast.

Mon, 09/17/2012 - 09:56 | 2803023 Manthong
Manthong's picture

Same thing in Weimar until the value of owning a tiny fraction of a few companies decoupled from the price of bread.

Mon, 09/17/2012 - 08:30 | 2802695 Sheeple Shepard
Sheeple Shepard's picture

Wh..wh..What? You mean Weimar Germany isn't the centre of the financial world?

Mon, 09/17/2012 - 08:43 | 2802727 UGrev
UGrev's picture

Zimbabwe isn't either.. nor is Argentina.. 

Mon, 09/17/2012 - 13:11 | 2803945 Sheeple Shepard
Sheeple Shepard's picture

Mmmm, makes no sense to me. More is better right?

Mon, 09/17/2012 - 13:44 | 2804088 UGrev
UGrev's picture

sure.. if you want to believe that.. 

Mon, 09/17/2012 - 09:03 | 2802782 spanish inquisition
spanish inquisition's picture

http://www.24hgold.com/english/interactive_chart.aspx?codecom=GOLD&chgecom=ChgeYEn&valecom=valeyen

Gold in yen for the last 30 years

Edit: Just about at lift off again, just need to distract the people and market... but how?

Mon, 09/17/2012 - 09:14 | 2802825 HD
HD's picture

Now that's a good chart.

Mon, 09/17/2012 - 10:24 | 2803209 spanish inquisition
spanish inquisition's picture

Interesting overlay http://www.thoughtofferings.com/2009/04/nature-of-this-crisis.html

Government and private debt as a % GDP. In the beginning it works just like the neo keyenseans predict in the 80's more Gov't debt more Private debt more GDP. Gov't tries pulling some debt or slowing increase around 1988, GDP increases and private debt stalls. Private deleveraging starts and as govt starts printing. Apparently, there is a limit to the amount of debt a people are willing to service as a % of GDP. So inflation creates a fake wealth effect that gets them buying again?  Since 02? Japanese GDP growth is due to devaluation fake wealth effect generation.

http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_cd&idim=country:JPN&dl=en&hl=en&q=japanese+gdp

 

Mon, 09/17/2012 - 09:14 | 2802826 Calculated_Risk
Calculated_Risk's picture

I believe the premise is 'where else you going to go'. If the whole world is flooded with $, "they" are going to take the "safe" bet in "cheap" equities.

Did you forget your msnbc brainwashing already?!

Mon, 09/17/2012 - 08:12 | 2802640 giggler123
giggler123's picture

Bloomberg reports, Ben Bernanke seen in field with spade

Mon, 09/17/2012 - 08:34 | 2802704 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

It is about time the fucker does actual, real, productive work.

Mon, 09/17/2012 - 09:37 | 2802897 Vince Clortho
Vince Clortho's picture

Haaaa!  Don't hold your breath.  Those hands touch only ink and paper.

Mon, 09/17/2012 - 09:39 | 2802907 otto skorzeny
otto skorzeny's picture

oooooo-dat's racissss.

Mon, 09/17/2012 - 08:14 | 2802644 DougM
DougM's picture

If you store it outside the US then a foreign government is more likely to take it away from you.

Mon, 09/17/2012 - 08:37 | 2802715 andrewp111
andrewp111's picture

Or a foreign banker. The Swiss Bankers stole enormous amounts of gold from dead Jews during WW II.

I keep my metals at home. At least I know where they are. People with paper gold in Switzerland will end up with just that - paper.

Mon, 09/17/2012 - 09:40 | 2802914 Tinky
Tinky's picture

Nonsense. First, you are conflating too issues (and of course physical is crucial). The Swiss economy would be devastated if their private corporations did anything remotely like confiscate foreign PM holdings. The only reasonable concern is that the US government would pressure Swiss banks to hand over PMs. Those stored outside of the banking system will be much more difficult to get at.

Mon, 09/17/2012 - 09:43 | 2802927 otto skorzeny
otto skorzeny's picture

That's a lie perpetrated by the Jews to extort $ from the world and the swiss in particular. There have been thousands of conflicts across the world over time and if you had to cough up $ for something your ancestors did at some point in history everybody in the world would owe somebody else.

Mon, 09/17/2012 - 08:14 | 2802646 Spitzer
Spitzer's picture

we need to speed up this process.

 

Faber has been saying the same thing for 5 years. Hes right but lets get on with it. somebody do something...

Mon, 09/17/2012 - 09:46 | 2802945 otto skorzeny
otto skorzeny's picture

it'll be quick but painful when it does-a matter of hours.

Mon, 09/17/2012 - 10:37 | 2803264 Chump
Chump's picture

Nah man, 3 days.  That's how long civilization lasts thanks to MBA JIT efficiency brilliance.  Remember Maslow's hierarchy of needs?  After 3 days of supply chain interruption every single unprepared person is right at the bottom: physiological.  You can continue the thought process on your own because I'm off to pick some lonesome tunes on the 5-string.

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