Marc Faber: "Gold Is Quite Oversold. I Will Consider Buying Gold Over The Next Two Days"

Tyler Durden's picture

Anyone trading gold and silver most likely had a heartattack this morning. Of that subset, anyone who survived and traded with conviction made a killing, following an impressive surge in both metals, which saw silver soar from $26 all the way back to $30, after it was made clear that there was no behind the scenes liquidation of the metal but merely more piggybacked margin hikes this time out of China as was first reported by Zero Hedge. Another factor that helped was Marc Faber's appearance on CNBC earlier, who said that gold is now "quite oversold" and that he would be adding to the yellow metal in the "next two days." In retrospect, he should have been adding today to his existing holdings. However, since he already has 25% in gold, he is forgiven. Mutual funds which, however, have about 1% in gold, are not.

Some of the key soundbites from Faber: "Gold is quite oversold and I would consider buying some gold in the next two days... We overshot on the upside when we went over $1,900. We're now close to bottoming at $1,500, and if that doesn't hold it could bottom to between $1,100-$1,200. "Both equity markets and gold markets have become very oversold, and I think a rebound is occurring. Following this rebound, which I expect to get underway this week, there will be a longer slowdown." In other words, Faber shares our undying certainty that should stocks plunge and they will once the rumor mill halflife is measured in nanoseconds, the Fed will have no choice but to intervene again, with trillions of monetization. We speculate that that would not be exactly negative for gold...

And naturally, CNBC's spin on this same interview is that according to Faber gold is plunging to $1,100... Sigh.

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bania's picture

weak hands ----> strong hands

luna75's picture

As a strong hand, I'm grateful to the weak hands for this opportunity.

GetZeeGold's picture


Show me someone willing to sell PMs. Silver is still going for $38 on Ebay.


This is hot paper pushing the metals down. This market is just not for real.


mick_richfield's picture

Precious metals "deep storage".

Get it up here!  Get frikking Jacques Cousteau on the horn!  That could keep the COMEX in business for another three weeks! 


Hephasteus's picture

Ya I heard that they found 90,000 tons of sunken columbian coffee too. Should be going for 10 bucks for 2 lb package any day now.

Minoan's picture

Just kidding mate.

I visited 3 coin-shops today and i couldn't find cheaper than 25 euros/t.oz.

Ahmeexnal's picture

A) walk into the coinshop with your iPad displaying kitcosilver daily price chart and demand to have the stuff at the official price.

B) be sure to have an appointment with your dentist/facial reconstructor right after  you walk out of the coinshop...empty handed of course


regarding that sunken cargo ship: wouldn't surprise me at all if they found out there was no silver on board in the first place.

flashback to WWII:

Churchill:  "Adolf, old buddy. I need a favour of your U-Boats.....we'll split 50/50"

Smiddywesson's picture

That's almost 3 miles deep.  That will be a very long and expensive expedition, but a very exciting one no doubt!

tmosley's picture

Trolls seem to love that site.  Probably because the listed inventory is not linked to their actual inventory, and you have to call to confirm that they don't have any inventory.  I chased that goose looking for COMEX deliverable bars on several occassions.

eurusdog's picture

It would be foolish to pay 38 for physical right now. You find it all over the internet for around 30 - 32.

strannick's picture

We love you weak hands! 'Hope and Change', 'Yes we can'

thunderchief's picture

This is not good for the silver bulls like me.  I was hoping for a final capitulation crash to 20.  That followed by a full blown comex and London default.  Maybe it will still happen.   A price rise like this may not make that feasible, as the paper monkeys come back in and jack paper prices back up. 

Keep in mind Silver and Gold investors.  Price discovery will only come with a sobering realization of above ground supply.  Silver just went as high as 60:1 with this latest takedown. 

If you all want to come back down to earth with me, there are 8 parts silver for every 1 part gold above ground supply (bars on the shelf).

My point is simple.  We need a physical demand frenzy, and that can only come with further paper price declines.  That will hopefully lead to a Comex and London default. 

And if you think the Silver market has gone bonkers, go talk to Mr. Platinum.  He will give you and even crazier story.

Smiddywesson's picture

My point is simple. We need a physical demand frenzy, and that can only come with further paper price declines. That will hopefully lead to a Comex and London default.

Well there you go.  That would argue for them keeping the game going forever.  If the people at risk of a Comex and London default (JPM, big banks, etc) are the same people knocking down silver prices, why would they allow those conditions?

tmosley's picture

Where do you get the 8 bars silver for every 1 bar gold?  From what I have seen, there was about as much silver as there was gold, and the silver was being used up pretty fast.  The absolute numbers are quite ambiguous, though.  The only hard numbers we have are on production and use, thanks to the Silver Institute.

XenoFrog's picture

I bought more over the weekend, so of course silver would crater.

He_Who Carried The Sun's picture

Its all like 2008, yes, but what happened after THAT cratering?

Sparticus1's picture

I locked in some 8 days ago for $40.  I guess I should wash my car; we need rain in TX.


covert's picture

true but, platinum is even MORE oversold.


LawsofPhysics's picture

Oh crap, sell the paper ASAP!  As always, keep the physical.

papaswamp's picture

Might have missed your chance when it went below $1600...India buyers stepping in heavy with looming wedding season approaching.

Praetor's picture

Tell me about it, my soon to be Indian wife loves the gold. Not silver so much. Thinks its funny I'm the only white person accumulating gold. Was waiting for it to drop to 1300 to get some more, but that window is gone I think.

thunderchief's picture

There is a cultural premium attached to Gold in China and India, which does put silver at a disadvantage, like your wife thinks.  The good thing for silver is there are a lot more poor people buying silver than wealthy people buying gold.  But you definatly see this in China and India, which puts silver at a disproportionate ratio to gold.

It is kind of like cars.  A Chinese, Indian, or Middle Eastern person just love status.  Gold is like a BMW/Mercedes/Land Rover/Porche.  Silver is a crazed reckless Nissan Patrol that is going to kill you and your family.  Platinum is a Bugatti.  What the hell is a Bugatti?  You have to go ask the driver

thunderchief's picture

I call Palladium the Bastard metal.  That is because it has almost no monetary component, like gold, silver, and Platinum.  The asians, who are always on top of things in the metals market buy platinum, and are catching on more and more with palladium. 

But palladium seems to be equal to an exhaust pipe.  Palladium is ever tied to dirty automobile catalytic converters, which is not fair.  That is why I call it the bastard metal.  As far as price to above ground supplies, I think palladium is the best buy among its peers.  It is very rare and cheap.  

I would put it this way

Palladium #1

Platinum #2

Silver #3

Copper? #4

Gold #5


Oh regional Indian's picture

Interesting thing happened in the Indian PM market these past few days.

The price plunge did not match th eglobal one in percentage terms. Why? Because the Rupee tanked also. And we are a primary PM inport nation. 

Must be hairy price-setting in such environments. So, it was a strange week of price-action in India. Of course the value perspective changed not one bit! ;-)


Getting Weirder and Weirder

ManufacturedOpinion's picture

Oh, shit - here he cums again with the worthless articles.

Save your time folks, the indian writes like a lame duck.

Race Car Driver's picture

Mbbe you could link us to your blog for a little comparison?

the not so mighty maximiza's picture

they might just start doing machine gun margin hikes every week if required.   Thats all they got left to manipulate it.  Only the insiders know when they will do it and position correctly.


SheepDog-One's picture

Yea but arent they limited by a ceiling of 100%?

eisley79's picture

yah, buts its absolute value is currently at 5%, so they can raise it "20%" many times still...

pupton's picture

What I don't get is why the raised silver margin requirements NOW.  The price was $40/oz, which is where they knocked it down to with the Usama Bin Laden May 1 increase.  So the price had stabilized after the previous rout.  Why raise it again?  I'm not that naive to think they wouldn't do it just to crush long speculators, but what is their justification to the market? 

CrazyCooter's picture

My theory is they have to beat the price down before they can announce monetary expansion. The market has to go down so they can tie some anchors to gold/silver paper price.

If they can beat gold to 1200 and silver to 20, isn't that roughly what it was before QE2?

This is not market forces at work ... one day the wheels are going to come off ... that is going to be a shit show!



Smiddywesson's picture

Those margin hikes become increasingly valuable to the manipulators as they use them up.  Going forward, they can only use them when they are desperate. 

GeneMarchbanks's picture

You & fellow ZHers who watched are most welcome;) Now, how this dude got on the BBC is what I'd like to know? Poor little British hussy, she really wasn't ready for his commentary.


moriarty's picture

He slipped through the net didn't he! The only problem is that the majority of middle England (the bag men and women) that will be creamed in the fall will be out working their ass off for more bank credits.

RSloane's picture

Just wow. Its amazing they didn't cut his feed. Honesty like that is rare and is rarely tolerated.

DosZap's picture



BEST LINE and Truth I have heard...........................

Governments do not run the economy GOLDMAN SACHS DOES!!!!!!!!!!!!!!!!!!!!!


Awakened Sheeple's picture

Anyone else notice the silver tie? :)

Cathartes Aura's picture

look again - it's shiny pink, similar to Mr. Faber above - trader tie?

Shit Bag's picture

He basically suggests to switch every asset to bonds otherwise "every saving will be gone".. wtf

Long-John-Silver's picture

Clearance sale on Gold is almost over.

Robslob's picture



Some CNBC Headlines this Morning: 

1) Gold could fall to $1,100: Faber

2) Central Banks the Only Defense Afainst Apocalypse


Something really ugly is brewing...complete confusion mixed with desperation...we must be almost there...