Marc Faber: "I Have A Very Special Stock Tip For You. The Symbol Is G-O-L-D"

Tyler Durden's picture

It has been a while since the Marc Faber graced Zero Hedge. It is time to remedy that. Providing his traditional dose of snark, tragedy and realism, the Gloom, Boom and Doom report author spoke to Bloomberg TV, and when asked what his outlook for the euro is, dispensed the following pearl: "I have a very special stock tip for you. The symbol is g-o-l-d. That is what I prefer to hold. Both the euro and the dollar are long-term undesirable currencies, especially given zero interest rates in the U.S. Equities to some extent become like cash because they become a store of value compared to cash at a zero interest-rates. Paintings become a store of value, stamps become a store of value." Needless to say, this is the kind of response that will get him banned from CNBC for life when Bartiromo breathlessly asks him, "ok, you think the world is ending, so what five stocks would you buy." As for his latest report, "It's actually quite gloomy but if you're very gloomy what do you invest in: Treasuries, Italian bonds or commodities or equities?  I happen to think U.S. equities are not terribly expensive, so relatively speaking to other assets, they may for a while actually do quite well." Considering the ridiculousness of the market over the past two weeks when it has gone up on nothing but lies, Faber just may have a point. 

Some other highlights from Faber:

On the market now:

"Right now, the market is in neutral territory. It was very oversold on October 4th when the S&P dropped to 1,074. Now around 1260, the upside in my opinion will be between 1,280 and 1,350 because there's a lot of supply around that area. But if there is some good news coming out of Europe, and good news would simply mean postponing the problems for another few years with some kind of money printing operation, either by that ECB or IMF or EFSF, [that] lift stock prices higher."

"[Postponing problems] is not good news, but it is better news than if the whole eurozone falls apart. It gives some time to maybe find better solutions. I doubt they will be found, but with money printing you can hide a lot of things and you can postpone problems as we have seen in the U.S."

On whether he'd rather own euros or dollars:

"I have a very special stock tip for you. The symbol is g-o-l-d. That is what I prefer to hold. Both the euro and the dollar are long-term undesirable currencies, especially given zero interest rates in the U.S. Equities to some extent become like cash because they become a store of value compared to cash at a zero interest-rates. Paintings become a store of value, stamps become a store of value."

On emerging markets:

"There is close correlation between all markets in the world. This year, the U.S. has grossly outperformed the emerging markets   In Asia, we're down between 15% and 25% in markets. In Eastern Europe, even more. The U.S. this year is a wonderful market relative to the rest of the world. "

"I think this outperformance may go on for a while. Some emerging markets could rebound more strongly than the U.S. because they are more oversold. Like India, the currency is down 18% since July and the market is down 22%.  Currency adjusted, the market has been extremely weak and is oversold. It could rebound somewhat here, but forget about new highs. It's not going to happen anytime soon."

On China:

"The reason I'm not very keen on China at the present time [is because] we had a credit bubble, we still have artificially low interest rates and a huge fiscal deficit in orders words artificial stimulus. That's coming to an end. Yes, the government can further stimulate and slash interest-rates again and reduce reserve requirements, but it will just postpone the problem and aggravate the problem in my opinion."

"When you have an economy like China that becomes so big so quickly, you can have a more meaningful setback. If the U.S. economy grows at 3% or contracts that 3%, it has no impact on the price of copper to speak of….In the case of China, whether the economy grows at 10% or 5% as a huge impact on the demand for iron ore and copper and aluminum, steel and coal. The Chinese economy today has a much larger impact on the rest of the world than is generally perceived economically speaking."

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potatomafia's picture

Yeah, what a fuckin nut... 

Mr Lennon Hendrix's picture

Yeah, everyone who has invested in gold is crazy, and are buying into a bubble.  It's just a rock that women like to look at, nothing more!

BoNeSxxx's picture

Classic... the ad that I was forced to watch in return for being provided with the Marc report was for Goldman Suchs.  

I-R-O-N-Y bitchez.

Pladizow's picture

I'd like to hear Faber say, "One Billllllion Ounces!"

AldousHuxley's picture

During November crash even Mark Faber was disappointed to see equity markets tank on an interview. He mentioned maybe 25% is in commodities and metals.

Truth is that  even Mark Faber himself wouldn't allocate ALL of his money into gold today. Probably max 30%. No hedge fund would invest 50% or greater into gold and be able to charge 2/20 from their clients.

That's why FED gets away with printing. Bernannke knows, nobody has the balls to invest 100% of their life savings or inheritance or corporate cash or reserves into GOLD.

DoChenRollingBearing's picture

Not even BIG TIME gold bull Bearing has even 30% in gold!  Hey, I do not want to see everything crash either.  I own stocks and (fewr than before) bonds too.

It is important to point out that nobody has to be at the All Inn to be diversified into gold!  And gold is real diversification.  Even mainstream money managers say it´s OK to have 5% - 10% in gold.  And yet, it is believed that only 1% - 3% of Americans own any investment gold, seems incredible to me.

AldousHuxley's picture

99% of Americans don't own anything. Even your doctor earning $200k/year has $300k student debt + $800k mortgage debt.

That ferrari is a rental, that boat is a rental, that McMansion is a rental, even US government is in debt in order to finance war.

Well most of Americans are idiots and probably don't even understand the concept of inflation or simple personal finance.  Believe in magic and after life bs.


1% that own something will own gold because they care about inflation.


If there is is heaven, it will be made in GOLD.

FranSix's picture

And we haven't even gotten around to currency devaluation.  Should short term rates perist into the negative and long bond auctions fail, a currency devaluation aught to be in the cards.

Tater Salad's picture

Huxey, I have LOTS of MD friends and can tell you:

1)  None of them make less than 400K per year

2)  None of them have any student debt

3)  None of them have a Ferrari, some have boats that they paid cash for

Hmm, what they feed you blokes in the UK?  How do you become so arrogant to point fingers at an entire populus?  And the "most of Americans are idiots" is a real winner, again proves your arrogance, perhaps outstripped by your ignorance.

AldousHuxley's picture

Depends on how old they are....and their specialty but generally I'd say $200-$250k unless you are in the ROAD fields


You realize that only 30% of US population 25+ has 4yr college degree or higher? And college degree barely says anyone of their intelligence.


Specialty  Median salary (USD)     Average salary/hour (USD) Anesthesiology 331,000 to $423,507 Dermatology 313,100 to $480,088 103 Emergency medicine 239,000 to $316,296 87 Cardiac Surgery 218,684 to $500,000 Family practice 175,000 to $220,196 58 Internal medicine 184,200 to $231,691 58 Neurology 213,000 to $301,327 93 Obstetrics and Gynecology 251,500 to $326,924 83 Ophthalmology 150,000 to $351,000 Orthopedic surgery 397,879 to $600,000 Otolaryngology 191,000 to $393,000 Pathology 239,000 to $331,842 Pediatrics 160,111 to $228,750 69 Psychiatry 173,800 to $248,198 72 Radiology (diagnostic) 377,300 to $478,000 Surgery (general) 284,642 to $383,333 Urology 331,192 to $443,518 Neurological surgery 350,000 to $705,000 132 Plastic surgery 265,000 to $500,000 114 Gastroenterology 251,026 to $396,450 93 Pulmonology 165,000 to $365,875 72
Frosty Gary's picture

I don't usually like to be this harsh, but...

It's "populace", you dumbfuck cretin.

God, not even "populous" is spelled "populus".

akak's picture

He was undoubtedly referring to the quaking aspen: Populus tremuloides

UP Forester's picture

I bet none of them live in the U.P.

OldPhart's picture

So...I should swap three pounds of silver for gold?

Eager learner's picture

I heard Farber recently advise being: 

25% Equities

25% Real estate

25% Cash

25% PMs

Ghordius's picture

it's still the best advice in troubled times for any mid-sized portfolio upwards

kind of the "old school" of "old money"

he always jokes about the cash part, it's for opportunities and girlfriends/wifes


I note that Tyler has not highlighted a little snippet: he does not believe in a catastrophic demise of the EUR - even if a certain amount of countries would resume their own currencies he sees a role in the EUR as inter-country currency. I believe Greece and a couple of other countries will get off and, at some point, get back on. Not Germany. Not now that Italy is on Austerity course.

Tyler, your EuroPhobia looks from my perspective nearly pathological. What will you write in ZH if the EUR is at 1.425 by Easter?

Nevertheless, your POV has brought me to request access, put my little annoying avatar, etc. etc., so: all the best for ZH's next year.

Ah, and Thanks

theMAXILOPEZpsycho's picture

what would be the purpose of hedge funds if people thought they should just go all in on precious metals. In fact thats one of the reasons why bosses like hugh hendry and others are against them in my opinion. If any hedge fund boss came out and said just buy gold, and silver and youll get 25% copounded returns on average for the next 8 years...what would be the point of investing with him??

technovelist's picture

I have about 70% of my life savings in gold. I wish it were 100%, but made the mistake of diversifying, mostly into Swiss Francs.

Zero Govt's picture

just imagine you buy this stuff, sit on your arse and outperform the entire Hedge Fund Industry by miles without $millions in bonuses and commissions

...and you also outperform Rob Prechter and Elliott Wave International (who have been calling 'TOPS' for nearly 2 years and every one a failure) by even more

What's not to like about Gold?'ve got to be an incompetent investor, or Ben Bernanke, not to think Gold's a no-brainer

Shocker's picture

He and other have been saying this for a long time. Pretty simple, get a clue


Careless Whisper's picture

@ Mister Lennon Hendrix


As for me, Im getting real tired of explaining the value of gold to people. Im at the point where if someone I know doesnt get it, well too bad for them.  The only reason I would defend gold on a blog is because half these trolls are bots sponsored by the private banking cartel known as the federal reserve bank.

SaveTheBales's picture

Sometimes its really is best to not call a man a fool.  Just take his money.  I quit pumping the metals a while back, and now feign passing interest.

AldousHuxley's picture

things and traditions older than central banking are made in gold.

  • old king's tombs
  • your wedding ring
  • religious relics in European churches
  • Jewish last names (goldwater, goldman, etc.)
  • Chinese emperor's stuff


US Federal reserve themselves have most gold reserves. When Chinese want their currency to gain more power, they start stocking gold.

Venezuela didn't trade oil for plastic shit from China. They called back gold.



DoChenRollingBearing's picture

@ Careless Whisper


I hear you re trying to get people, even family, to buy gold.  So I just gave up,  They know where I stand, and they choose not to hear.  OK...

HamyWanger's picture

Yeah, Faber is a nut crackpot but worst of all, he lives in a foreign country instead of the place he was born in, like so many American traitors nowadays. He should be court-martialed and executed for high treason.

nyse's picture

People dont get jokes around here, huh?

seek's picture

The quick ones laugh, the slow ones downvote.

fuu's picture

Too many agendas.

Temporalist's picture

Except he's not American...

Ghordius's picture

I thought the Swiss accent would be quite obvious...

hollowbody's picture

Shit, and its not even the weekend....

Bansters-in-my- feces's picture

Couldn't resist TammyWanger.

You Fucktard.

When your country is ran by murderous dictators,who would want to stick aroud,...?

Besides you,and the likes of you.

Fuck off Faggot.

Zero Govt's picture

Hamy allows his Stars & Stripes biggotry, firmly stuck up his rectum, to cloud his judgement on good investment advise 

Hitlers Germany isn't a million miles away, or Francos Spain or Maos China ...exterminate anyone intelligent who doesn't strictly sing the national anthem breakfast, lunch and before bedtime...fuking brilliant Hamy's World


WhiteNight123129's picture

Long Gold, long tobacco processing - short dollar (long term debt on balance sheet) write put on home prices, short Vale, long cheap exporters in Portugal and Greece which will have soon a quasi debt cancellation! (redenomination of debt in bananas)

AldousHuxley's picture

GLD is taxed at 28%, gold futures at 60/40 on gains.



UGrev's picture

There's that word again; "heavy". Why are things so heavy in the future? Is there a problem with the earth's gravitational pull? 

akak's picture

In the 1950s, they didn't have Oprah, Kirstie Alley, Dennis Gartmann, Rosie O'Donell, Michael Moore, Salamander Grinchgrinch, or a "supersize-me" obese teenage and 20-something cohort. 

Of course the value of G has had to grow over the last few decades.

FrankDrakman's picture

Yes, Doctor Brown. There's so many enormous lard asses in the US of A, it's affecting the field.

Go long insulin, bitchez!

TheFourthStooge-ing's picture

UGrev asked:

Is there a problem with the earth's gravitational pull?

It sucks.

margaris's picture

portfolio is getting heavier with all the gold in it...

heavy metal gold.
heavy metal gold!

LawsofPhysics's picture

Unless you are getting physical, this is more mental masterbation at this point. 

Gohn Galt's picture

Awesome, Chuck Norris's one wish is to go to Washington, line up all the politicians and have Ron Paul point out the corrupt ones, his black belts bring him the politician and Chuck Norris chokes him unconsciousness.

bigdumbnugly's picture

chuck norris died 20 years ago. 

death just hasn't built up the courage to tell him yet.

bigdumbnugly's picture

gold thinks chuck norris is money.