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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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Wed, 12/07/2011 - 18:26 | 1956525 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

G-o-l-d, bitchez!

Wed, 12/07/2011 - 18:36 | 1956555 ratso
ratso's picture

Gold - how unusual.

Wed, 12/07/2011 - 18:38 | 1956567 potatomafia
potatomafia's picture

Yeah, what a fuckin nut... 

Wed, 12/07/2011 - 18:47 | 1956595 Mr Lennon Hendrix
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!

Wed, 12/07/2011 - 19:03 | 1956632 BoNeSxxx
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.

Wed, 12/07/2011 - 20:42 | 1956816 Pladizow
Pladizow's picture

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

Wed, 12/07/2011 - 21:09 | 1956873 AldousHuxley
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.

Wed, 12/07/2011 - 21:28 | 1956922 DoChenRollingBearing
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.

Wed, 12/07/2011 - 22:20 | 1957032 AldousHuxley
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.

Wed, 12/07/2011 - 23:30 | 1957147 FranSix
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.

Wed, 12/07/2011 - 23:38 | 1957165 Tater Salad
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.

Thu, 12/08/2011 - 00:42 | 1957290 AldousHuxley
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
Thu, 12/08/2011 - 00:53 | 1957326 Frosty Gary
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".

Thu, 12/08/2011 - 02:15 | 1957499 akak
akak's picture

He was undoubtedly referring to the quaking aspen: Populus tremuloides

Thu, 12/08/2011 - 06:53 | 1957726 UP Forester
UP Forester's picture

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

Thu, 12/08/2011 - 04:09 | 1957624 OldPhart
OldPhart's picture

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

Thu, 12/08/2011 - 07:00 | 1957730 Eager learner
Eager learner's picture

I heard Farber recently advise being: 

25% Equities

25% Real estate

25% Cash

25% PMs

Thu, 12/08/2011 - 07:39 | 1957748 Ghordius
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

Thu, 12/08/2011 - 07:13 | 1957733 theMAXILOPEZpsycho
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??

Sat, 12/10/2011 - 07:39 | 1965750 technovelist
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.

Wed, 12/07/2011 - 19:19 | 1956636 Zero Govt
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? ...you've got to be an incompetent investor, or Ben Bernanke, not to think Gold's a no-brainer

Wed, 12/07/2011 - 20:01 | 1956741 Shocker
Shocker's picture

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

http://www.dailyjobcuts.com

`

Wed, 12/07/2011 - 20:08 | 1956758 Careless Whisper
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.

Wed, 12/07/2011 - 20:48 | 1956823 SaveTheBales
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.

Wed, 12/07/2011 - 21:18 | 1956894 AldousHuxley
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.

 

 

Wed, 12/07/2011 - 21:32 | 1956932 DoChenRollingBearing
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...

Wed, 12/07/2011 - 21:10 | 1956876 barkingbill
barkingbill's picture

are you fucking nuts?

 

Wed, 12/07/2011 - 19:23 | 1956663 HamyWanger
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.

Wed, 12/07/2011 - 19:40 | 1956697 nyse
nyse's picture

People dont get jokes around here, huh?

Wed, 12/07/2011 - 20:50 | 1956827 seek
seek's picture

The quick ones laugh, the slow ones downvote.

Wed, 12/07/2011 - 22:31 | 1957053 fuu
fuu's picture

Too many agendas.

Wed, 12/07/2011 - 20:00 | 1956740 Temporalist
Temporalist's picture

Except he's not American...

Thu, 12/08/2011 - 07:42 | 1957749 Ghordius
Ghordius's picture

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

Wed, 12/07/2011 - 20:07 | 1956754 hollowbody
hollowbody's picture

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

Wed, 12/07/2011 - 22:40 | 1956972 Bansters-in-my-...
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.

Thu, 12/08/2011 - 05:29 | 1957674 Zero Govt
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

 

Wed, 12/07/2011 - 19:40 | 1956696 WhiteNight123129
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)

Wed, 12/07/2011 - 21:29 | 1956924 AldousHuxley
AldousHuxley's picture

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

 

 

Wed, 12/07/2011 - 20:35 | 1956805 johnu78
Wed, 12/07/2011 - 18:27 | 1956529 Oracle Jones
Oracle Jones's picture

heavy

Wed, 12/07/2011 - 20:01 | 1956742 UGrev
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? 

Wed, 12/07/2011 - 21:07 | 1956863 akak
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.

Wed, 12/07/2011 - 21:05 | 1956867 FrankDrakman
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!

Wed, 12/07/2011 - 22:53 | 1957085 TheFourthStooge-ing
TheFourthStooge-ing's picture

UGrev asked:

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

It sucks.


Thu, 12/08/2011 - 09:06 | 1957898 margaris
margaris's picture

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

heavy metal gold.
heavy metal gold!

Wed, 12/07/2011 - 18:27 | 1956531 LawsofPhysics
LawsofPhysics's picture

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

Wed, 12/07/2011 - 18:28 | 1956532 bob_dabolina
bob_dabolina's picture

Chuck Norris has a very special tip for you. 

Ron Paul.

http://www.youtube.com/watch?feature=player_embedded&v=6efKKFFLZJs

Wed, 12/07/2011 - 18:37 | 1956563 Gohn Galt
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.

Wed, 12/07/2011 - 18:42 | 1956579 bigdumbnugly
bigdumbnugly's picture

chuck norris died 20 years ago. 

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

Wed, 12/07/2011 - 18:58 | 1956619 bigdumbnugly
bigdumbnugly's picture

gold thinks chuck norris is money.

Wed, 12/07/2011 - 20:03 | 1956747 Temporalist
Temporalist's picture

The only thing Chuck Norris is afraid of is Ron Paul.

Wed, 12/07/2011 - 20:54 | 1956841 Pladizow
Pladizow's picture

When Chuck Norris does push ups, he doesnt move up, the earth moves down!

Wed, 12/07/2011 - 21:11 | 1956878 akak
akak's picture

When Chuck Norris endorses political candidates, their polling numbers don't go down, those of every other candidate just move up.

Thu, 12/08/2011 - 18:47 | 1960999 LooseLee
LooseLee's picture

Chunk is a 'wannabee'; owes he full 15 minutes of fame to BRUCE LEE!

Fri, 12/09/2011 - 20:27 | 1964899 Gohn Galt
Gohn Galt's picture

Are you kidding me?  A lot of people where inspired and shaped by Bruce Lee, Chuck Norris included.

"Nobody can beat Bruce" Chuck Norris quote from an interview discussing Bruce Lee (can't find clip).

I learned a lot by studying Bruce, I selfishly I wish I could have met him or known him.  I guess I am a "wannabee" too.  Back to Chuck Norris, if he gets his wish to go Washington with Ron Paul to point out the corrupt and physically make politicians accountable, I'll be one of his blackbelts.

Wed, 12/07/2011 - 18:28 | 1956533 txsilverbug
txsilverbug's picture

You all read that article in Marc Faber's voice didn't ya?

Wed, 12/07/2011 - 18:28 | 1956534 pufferfish
pufferfish's picture

Mexico looks ace. I am lead to believe they have whole cities made from gold.

Wed, 12/07/2011 - 18:29 | 1956535 The trend is yo...
The trend is your friend's picture

1280-1350 is the next range.  It just doesn't matter

Thu, 12/08/2011 - 19:03 | 1961042 LooseLee
LooseLee's picture

How's that workin' out for 'ya? The 'trend' is DOWN....

Wed, 12/07/2011 - 18:30 | 1956538 I am a Man I am...
I am a Man I am Forty's picture

he also think equities will outperform over the next 10 years, as do I, make sure they pay a dividend though, or heavy on growth, like apple.....and I don't know how long apple has to go but I have made a ton of money on it thus far.......don't hate ladies

Wed, 12/07/2011 - 19:16 | 1956651 jm
jm's picture

When you have $50 billion or so retail outflows annually (factoring in ETF inflows), companies will have to produce a real dividend for the first time in a generation.  Earnings numbers are so fudged that dividends will be demanded as proof of free cashflow.

 

Wed, 12/07/2011 - 18:33 | 1956545 blu
blu's picture

The expensive part of the US equities market is that the pricing there is entirely a lie, and buying is not investing but gambling. Anyone buying equities is simply wagering at the casino tables.

Wed, 12/07/2011 - 18:34 | 1956549 monmick
monmick's picture
Randgold Resources on Nasdaq...
Wed, 12/07/2011 - 18:36 | 1956554 Mattress Money
Mattress Money's picture

Am I wrong to believe it's to late for Ron Paul, or that he is another politcian in sheeps clothing?  Where do you folks buy you gold from? I need the  location to be able to deliver.

Wed, 12/07/2011 - 20:23 | 1956782 DosZap
DosZap's picture

Mattress Mooney,

Where do you folks buy you gold from? I need the  location to be able to deliver.

You selling or buying?.

Their is a list  on here in many places for suppliers.

Wanna sell APMEX, if Gold.

 

Wed, 12/07/2011 - 18:36 | 1956557 Mattress Money
Mattress Money's picture

Am I wrong to believe it's to late for Ron Paul, or that he is another politcian in sheeps clothing?  Where do you folks buy you gold from? I need the  location to be able to deliver.

Wed, 12/07/2011 - 18:37 | 1956562 tekhneek
tekhneek's picture

Bloomberg probably has the shittest video player/streaming platform of all high traffic websites.

Gross. Get with the program Bloomberg.

Wed, 12/07/2011 - 19:08 | 1956637 I am a Man I am...
I am a Man I am Forty's picture

I am forced to have it on CNBC for their graphics alone.

Wed, 12/07/2011 - 19:17 | 1956653 Long-John-Silver
Long-John-Silver's picture

I had to give up the attempt to watch it. Starts and Stops breaks it up into something that's unwatchable. 

Wed, 12/07/2011 - 22:26 | 1957045 harveywalbinger
harveywalbinger's picture

Perhaps the problem is due to bandwidth hogging eavesdropping bloat-ware. Anyone who would read this site regularly is probably  considered a terrorist.  And the man has gotta keep track of the terrorists... 

Just a thought.  Or maybe I'm just paranoid... 

Wed, 12/07/2011 - 23:43 | 1957174 mkkby
mkkby's picture

Yep, it crashed my computer.  Now it's adblocked forever.

Wed, 12/07/2011 - 18:37 | 1956565 And Its Gone
And Its Gone's picture

Since the Gov. County, DMV, gas station etc. can ask to be paid in fiat only, and you have to sell your gold & silver to get the fiat,  it just doesn't look so good to me...

Wed, 12/07/2011 - 19:23 | 1956665 agNau
agNau's picture

I believe he said they would print and buy themselves more time. He did not appear optimistic of a solution.
SO,....the last I heard, more printing drove currency values DOWN.
I think I will stick with G-O-L-D/S-I-L-V-E-R.

Wed, 12/07/2011 - 20:00 | 1956738 Careless Whisper
Careless Whisper's picture

Well I went to the local KFC yesterday (love the extra crispy) and there was a big sign on the cash register:

We Dont Accept $100 Bills.  How the hell do they get away with that crap?

Wed, 12/07/2011 - 20:58 | 1956854 Pladizow
Pladizow's picture

That's typically not a problem for your average KFC customer!

Especially those ordering dark meat!

Wed, 12/07/2011 - 23:16 | 1957125 prole
prole's picture

I don't care who you are.......

Wed, 12/07/2011 - 18:37 | 1956566 fonzanoon
fonzanoon's picture

I don't get how the author of the boom gloom and doom report or whatever it's called can be so sanguine and indifferent right now.

Wed, 12/07/2011 - 18:40 | 1956575 txsilverbug
txsilverbug's picture

He has more comma's in his checking account balance sheet than I do. Who you going to believe, the guy making all the money or the guy not making any money?

Gloom or not, he's right.

Wed, 12/07/2011 - 18:45 | 1956586 fonzanoon
fonzanoon's picture

He has more comma's than I do too. But why not listen to Buffett then and buy BAC?

Wed, 12/07/2011 - 18:59 | 1956625 txsilverbug
txsilverbug's picture

touche`

Wed, 12/07/2011 - 22:10 | 1957005 Real Money Wins
Real Money Wins's picture

Just remember the 1st rule of wealth. It's not about what you make it's about what you keep. So which is easier to keep, little ones and zeros in a bank over which you have no control or Physical Metal in you hot little hands.

DOPE IT OUT

Wed, 12/07/2011 - 20:11 | 1956761 Citxmech
Citxmech's picture

Buffet's probably lost more in the past year than Faber's entire portfolio is worth though.

If I had to tie my money to a market prognosticator, the short-list would be Faber, then Rogers, in that order.

Wed, 12/07/2011 - 23:47 | 1957180 mkkby
mkkby's picture

Neither are even in the same league as Hugh Hendry.  He's about to get his ECB rate cut trade too.  So another bang up year.

Wed, 12/07/2011 - 20:30 | 1956797 DosZap
DosZap's picture

fonzanoon

He has more comma's than I do too. But why not listen to Buffett then and buy BAC?

 

Free country,buy whatever piss paper you want.

How about some Airlines stock.

He's is correct some(few) equities have as of NOW value,but how ong does that last?.

Got one choice,commodities.

PM's/Oil.

Wed, 12/07/2011 - 19:36 | 1956688 secretargentman
secretargentman's picture

He's probably got more commas in his account than I've got digits in mine.  :-|

Wed, 12/07/2011 - 20:13 | 1956766 DosZap
DosZap's picture

fonzanoon

I don't get how the author of the boom gloom and doom report or whatever it's called can be so sanguine and indifferent right now.

Easily, he has his shit covered six ways from Sunday, and is a member of the 1% elite.When your net worth is past the 100 million mark, your pretty much an invisible,and protected individual, and I am sure Marc passed that number LONG ago.

Shit gets bad, Marc goes to his brothel and hotel in a SE Asian jungle, and just waits for the SERFS to be disposed of, or given new lives............

The 1%er's have NO worries over this entire debacle, unless the Nukes start flying, and then likely has a underground facility with ALL he will ever need, Dr's, and facilities, until it's his natural time.

Wed, 12/07/2011 - 21:12 | 1956880 GFKjunior
GFKjunior's picture

I was with you for the first 10 words. He isn't shitting his pants because he knew all along what was going to happen and has prepared accordingly.

 

I, as I'm sure most ZHedger's, already have a safe full of G-O-L-D. I get angry and upset at the market but I already know what the end game is going to be, so I'll just chill out, stack some PM's, and try to make some money before the markets burn.

Wed, 12/07/2011 - 18:38 | 1956569 PaperBugsBurn
PaperBugsBurn's picture

Gold biatches!

And I got me own Au+Ag+Cu mine...

collapse already bitches

Wed, 12/07/2011 - 18:42 | 1956578 Esculent 69
Esculent 69's picture

Hope you own the phyzz rather than paper. Paper gold/silver markets are leverage 100 to 1 and if people want their phyzz and the dealers cant deliver, well good fuckin luck. if the market collpases and the dollar is destroyed what would you rather have..a piece of paper that says you have x amout of gold in this or that gold stock or would you rather have the real deal in your hand with your weapon in your other.  Sweet Charleen

Wed, 12/07/2011 - 18:56 | 1956615 Chupacabra-322
Chupacabra-322's picture

"would you rather have the real deal in your hand with your weapon in your other."

Ahh, It's great to have both.  BTW, just picked up today a fresh brand new Springfield Armory TRP .45ACP made in the Great US of A.  What an investment. 

Wed, 12/07/2011 - 19:00 | 1956628 Esculent 69
Esculent 69's picture

Have you seen the fully auto 12 gauge shotgun that fires 30 rounds in about 8 seconds on youtube? It's almost as great as the "Professional Russian" who shows how a Dragons Breath shotgun round works.  I want them soooooooooo bad. Amazing

Wed, 12/07/2011 - 19:28 | 1956676 UP4Liberty
UP4Liberty's picture

That is one badass shotgun...gotta git me one!

Wed, 12/07/2011 - 20:35 | 1956804 RobD
RobD's picture

It is only a pump gun but it is legal in all the states. Kel-tec makes a dual tube bull pup shotgun that holds 14+1. It has a lever that allows you to switch between tubes so you can have two different types of shells to choose from. Buck in one tube and slugs in the other. Kel-tec KSG bitches

http://www.youtube.com/watch?v=NxkVkwmybHY&feature=related

Wed, 12/07/2011 - 21:45 | 1956965 UP4Liberty
UP4Liberty's picture

Kel-Tec - dang!  Imagine what one could do to an uninvited visitor...

Thu, 12/08/2011 - 02:41 | 1957542 Esculent 69
Esculent 69's picture

what was the first thing you destroyed with it? 3 sillouettes of Bernank, Timmy timm timm, and....well i'll let your imaginations do the rest

Wed, 12/07/2011 - 20:34 | 1956802 DosZap
DosZap's picture

Esculent 69

Dragons breath are available, if you want to set someone on fire.

As for the FA Shotgun, the Military has one that does thatk, and also the same thing with 40's.Now ain't that a bitch.(watch that demo, and pray your a long way off.

It takes the place of at least a Platoon w/one dude.

Wed, 12/07/2011 - 20:12 | 1956765 Citxmech
Citxmech's picture

Let's ask Gerald Celente. . .

Wed, 12/07/2011 - 23:24 | 1957140 prole
prole's picture

Paper gold? Give me a break! It's not worth the paper it's not printed on! Only a fool would "buy" paper gold!!lolFTW11
(oh wait-)

Wed, 12/07/2011 - 18:45 | 1956589 israhole
israhole's picture

Faber is always smiling and enjoying life!

Wed, 12/07/2011 - 20:15 | 1956772 chump666
chump666's picture

he likes to get high. 

Wed, 12/07/2011 - 22:57 | 1957094 TheFourthStooge-ing
TheFourthStooge-ing's picture

Doesn't everyone?

 

Thu, 12/08/2011 - 01:42 | 1957436 chump666
chump666's picture

on Bloomberg?  Nah just him...

Wed, 12/07/2011 - 18:47 | 1956591 BKbroiler
BKbroiler's picture

so basically, china needs materials because it has a real economy.  We, on the other hand, blow smoke up the world's ass, which we call the services sector.  THIS is why need a large army.

Wed, 12/07/2011 - 18:46 | 1956592 Caviar Emptor
Caviar Emptor's picture

For the Holidays: a gift that will help your non-financial friends to understand the current financial crisis.

 

A Poem: The House That Ben Built    -by Caviar Emptor

 

This is the house that Ben built

This is the debt that lay in the house that Ben built

These are the banks that created the debt that lay in the house tha Ben built

These are the governments that nationalized the banks that created the debt that lay in the house that Ben built

This is the monetary union that backstopped the governments that nationalized the banks that created the debt that lay in the house that Ben built

This is the European Central Bank that provided liquidity to the monetary union that backstopped the governments that nationalized the banks that created the debt that lay in the house that Ben built

This is the Federal Reserve that provided dollars to the European Central Bank that provided liquidity to the monetary union that backstopped the governments that nationalized the banks that created the debt that lay in the house that Ben built

Wait a second.....The house that Ben built......is the same house that built Ben (!!) 

Now I know we got a Ponzi

Wed, 12/07/2011 - 18:46 | 1956593 surrational
surrational's picture

I don't know with a properly hedged strategy such as shorting emerging markets while taking an equal position long in American tech, mitigates alot of the gambling factor.

Wed, 12/07/2011 - 18:47 | 1956597 Conax
Conax's picture

Picture this guy saying, "You vill sign ze papers, olt man! Zay are merely a statement zaying you were not mistreated while you vere here.."

I never heard him utter the verbotten word, s i l v e r.

dammit.

Wed, 12/07/2011 - 23:41 | 1957171 TheFourthStooge-ing
TheFourthStooge-ing's picture

"Zay are killink ze girl tonight, olt man! You can sayf her, olt man. All you haff to do iss sign ze paper."

 

Thu, 12/08/2011 - 07:50 | 1957754 Ghordius
Ghordius's picture

historically, silver is - since India lost it's - an American Taste

Faber is International - if the CBs don't hoard it, it's not a monetary metal, it's a speculative position

that said, yes, it could give enormous profits - but his portfolio composition is conservative, hence no silver

Wed, 12/07/2011 - 18:56 | 1956604 zebrasquid
zebrasquid's picture

If we get big inflation some stocks can keep pace, most cannot. So you better pick the ones that can get away with fleetly raising prices. They will likely prove to be better assets than cash, bonds, currencies. I think that is all he is saying.
In Argentina, for instance, or Weimar, many stocks went up in nominal terms a lot.
Physical Gold went up more (because it has no higher input costs to drag it down)

So gold first, then for accounts where you cannot easily hold physical gold, the right stocks, say, Colgate, are better than the alternatives.

Wed, 12/07/2011 - 18:59 | 1956624 cynicalskeptic
cynicalskeptic's picture

Zimbabwe had the 'best performing' stock market (measured in percentage increases) in the world for a time.......  

of course at the time a $Zim100,000,000 note was good for nothing more than toilet paper.....

I expect that you'll be lucky to simply preverve value with equities.... provided that you buy shares of a fundamentally sound company able to survive the upcoming storm.

Wed, 12/07/2011 - 20:59 | 1956859 DosZap
DosZap's picture

cynicalskeptic

I expect that you'll be lucky to simply preverve value with equities.... provided that you buy shares of a fundamentally sound company able to survive the upcoming storm.

Tell ya what,since the MF GLobal deal, and SO many other wonderful companies outcomes, WHO do you choose, and what are your odds of collecting?.Your still talking paper, go back and read whjat he ALLUDED to about equities(I caught a lot of sarc there,and truth, as compared the frickin USD?,or low int rates?).

Thank but no thanks..............if you can't use it, hold it, trade it, eat it ,live in it, whatever is left is worth ZERO.

Wed, 12/07/2011 - 18:51 | 1956606 PaperBear
PaperBear's picture

Outlook still "gloomy" ?

He is being realistic.

Wed, 12/07/2011 - 18:52 | 1956608 NOTW777
NOTW777's picture

schiff calling out flip flopper gartman on gold right now

Wed, 12/07/2011 - 18:55 | 1956613 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gartman doesn't have any cred left

Wed, 12/07/2011 - 19:41 | 1956700 Clowns on Acid
Clowns on Acid's picture

Agreed. I use to like Gartman, but once you become a permanent "host" on CNBC I get the feeling that Mr Gartman needs additonal cash flow and is willing to whore himself out as a cheerleader.

It's sad to see him grovel and flop like he does. He's not Cramer (ultimate insider trader) but he trying to create his pwn TV personality.

Wed, 12/07/2011 - 23:04 | 1957107 TheFourthStooge-ing
TheFourthStooge-ing's picture

Mr Lennon Hendrix opined:

Gartman doesn't have any cred left

It's all about context. Put him in big floppy shoes and a clown suit and turn him loose at the circus and he'd be remarkably credible.

 

Wed, 12/07/2011 - 19:57 | 1956729 baby_BLYTHE
baby_BLYTHE's picture

Peter Schiff is no Marc Faber (inflationists). Before 2011 Schiff said U.S. interest rates were going to explode to the upside while Faber accurately predicted a massive rally in Treasuries, 15% correction in stocks and an Asian slow down.

Wed, 12/07/2011 - 20:21 | 1956777 Temporalist
Temporalist's picture

I don't recollect that about Schiff.  Rising interest rates would be negative for gold, would decrease the lending that banks desire (creation of debt) and suppress housing sales and values, plus encourage savings which the Fed wants to suppress.

I'm not saying you're wrong just that it seems to conflict with his gold bullishness and belief in Fed printing as well as his thoughts of the housing bubble.  It would only have to be the belief, which he's said before, that there'd be nobody wanting to borrow, undesirous dollar, etc.  If you can provide a link thanks.

Wed, 12/07/2011 - 20:57 | 1956853 fonzanoon
fonzanoon's picture

Terporalist it is correct about Schiff that he did/does expect interest rates to explode. His take however is that gold will not be negatively affected by this because higher interest rates will not entice people, they will still look to gold for safety.

Wed, 12/07/2011 - 21:22 | 1956902 Temporalist
Temporalist's picture

True but I mentioned the impediments to rising rates that I also thought he believed.  Anyway the real rates as discussed below is one reason that rising rates won't matter and gold will rise and I follow that too, part of what you are alluding to.  Personally I think PMs are just going higher no matter what the circumstances I just wasn't sure on his position which I think you all clarified for me thanks.

Wed, 12/07/2011 - 21:05 | 1956865 chubbar
chubbar's picture

Not to quibble with you but rising interest rates are not necessarily bad for gold. It depends on what the real rate of return is. If it is a negative rate of return because interest rates went to 5% but inflation went to 12% (as an example) then we would still have a 7% negative real rate of return and gold would continue to do very well. Right now we have at least a 6% negative real rate of return, probably higher, assuming the use of shadow gov't statistics and not that hedonically adjusted blather the gov't is putting out (1% interest rate and 7% inflation, approximately). So rapidly rising interest rates in an environment of rapidly rising inflation isn't going to be bothering gold much, probably shoot it to the moon given the fact that the rising interest rates will cause the gov't to default (for every 1% rise in interest gov't debt servicing rises 140Billion) unless they rapidly monetize the debt.

Wed, 12/07/2011 - 21:14 | 1956886 Temporalist
Temporalist's picture

I should have said theoretically perhaps, or that is the popular belief, or the line they spout.  I get the real rates position and side with it.

Wed, 12/07/2011 - 21:25 | 1956911 akak
akak's picture

Excellent analysis and explanation.   +1

Wed, 12/07/2011 - 18:53 | 1956609 chump666
chump666's picture

Wow.  What a legend.  The Copper decline vs US consumption decline. Which is worst? Good stuff.  He ends with the commodity price wipe-out for the last 3mths.  It's all China for 2012

Faber has excellent instincts and travels the world.  Makes him a top notch investor.

Wed, 12/07/2011 - 18:54 | 1956611 Esculent 69
Esculent 69's picture

you crazy people are talking about futures positions, long position based on dollars. Do you not see the walls coming down? do you not feel the economic tremor that is shaking this market and our great country to its foundation.  For those of you who have never heard of it you should try reading the Cloward/Piven strategy in which it brings down capitalism by overloading the welfare and entitlement programs that cannot be met.  Once it falls they reboot the system as something else and believe you me it aint freedom or capitalism. Who do you think Obama is?  Didi you listen to that outrageous speech he gave in Kansas. That was pure unadulterated Marxism. If you dont believe me go read the manifesto. they tell you what they are going to do you just have to believe Them. we will look like europe who will look like china in the very near future. Or another Muslim state by the looks of things in europe.  

Wed, 12/07/2011 - 23:17 | 1957127 TheFourthStooge-ing
TheFourthStooge-ing's picture

You don't view the world based solely on what you've been told by the media, do you? You do know that the big media aren't very reliable sources of information, right?

 

Wed, 12/07/2011 - 19:01 | 1956629 bill1102inf
bill1102inf's picture

Any non-usable commodity (to you) or other "store of wealth" -- no matter what it is -- must be traded to someone (a counterparty) for what you wish to consume.

If that counterparty doesn't have a use for what you wish to trade him, whether it be gold, silver, T-Bills or federal reserve notes then what you have in that instant is worthless. As such all such assets have "counterparty risk."

Wed, 12/07/2011 - 19:15 | 1956649 txsilverbug
txsilverbug's picture

I think the people that won't do business with metals will eventually come around and start to.  We're talking about sheep here, not people that can independantly make up their own minds.  Monkey see, monkey do mentality big time in this country.  When the shit hits the fan, there will be some merchants not willing to deal with silver and gold at first but I imagine that will change pretty fast. 

Wed, 12/07/2011 - 19:20 | 1956659 A Lunatic
A Lunatic's picture

I thought you just forced said counterparty to do business, under penalty of imprisonment and/or death.

Wed, 12/07/2011 - 19:27 | 1956671 Goldilocks
Goldilocks's picture

"There can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be shaped into ingots, bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par excellence."

-Charles De Gaulle

This applies to other easily devisable commodities too… T-Bills & / or federal reserve notes, not so much (if at all). ;-)

Wed, 12/07/2011 - 19:30 | 1956678 HamyWanger
HamyWanger's picture

De Gaulle was a simpleton

Wed, 12/07/2011 - 21:11 | 1956877 knukles
knukles's picture

So Charlie D (as we used to call him behind his back) walks into a bar with a frog on his kepi.  Barkeep says; "Where'd you get that?"  And the Frog says; "Oh it started as a lump on my butthole."

Wed, 12/07/2011 - 19:28 | 1956677 HamyWanger
HamyWanger's picture

You nailed it.

All the doomers here will finish in the mass graves of history with their buried ham and their yellow rocks. So many unfit tribes, people and civilizations have already been wiped off. 

The goldbugs will be the next

A yellow rock won't help you in a total economic collapse

Wed, 12/07/2011 - 19:52 | 1956707 razorthin
razorthin's picture

Then I suspect the Neanderthal throwbacks shall feed on your meaty ass for sustenance.  I'll bring the Worcestershire sauce.

Wed, 12/07/2011 - 20:16 | 1956774 hollowbody
hollowbody's picture

And the garlic

Wed, 12/07/2011 - 21:35 | 1956916 akak
akak's picture

The Wanker stated:

A yellow rock won't help you in a total economic collapse

And if the upcoming economic and finanical upheaval is not quite "total" --- like every other economic collapse in history --- what then, asswipe?  No, I guess gold worked to protect savings during every other fiat currency collapse in history, but this time it's different!  Right?

Wed, 12/07/2011 - 21:23 | 1956822 Temporalist
Temporalist's picture

That is not what counterparty risk necessarily means.  Direct counterparties can find any means to resolve a trade of assets/goods/properties while markets and currencies are based on a massive complex system/network of people and technologies in finance and industry and sets of rules and laws...your "counter party" "description" is ridiculous. 

You are not describing "risk" you are describing value.  It is not a risk to not have what someone wants if you can get what someone wants when it is necessary to trade with them.   What you suggest is that nothing is of value to everyone which is obviously untrue.  If I don't want water at the moment because I have orange juice doesn't mean I won't want water at some point.  Also if someone has knowledge that what you possess has value to someone else they're also likely to consider trading/valuing what you have.  Paper, as has been shown throughout history, can go to valueless, but hard assets, that have been exchanged by humans (any asset) and valued maintains value.  If there is a risk scale, paper is on the ugliest end and gold is...someone exceptionally good looking (and shiney).

Wed, 12/07/2011 - 23:55 | 1957197 TheFourthStooge-ing
TheFourthStooge-ing's picture

bill1102inf took the time to explain that:

If that counterparty doesn't have a use for what you wish to trade him, whether it be gold, silver, T-Bills or federal reserve notes then what you have in that instant is worthless. As such all such assets have "counterparty risk."

If I understand you correctly, then what you're saying is that, for example, even though you have actual physical possession of your brain, it still has counterparty risk. Oddly enough, in this case, that makes perfect sense.


Wed, 12/07/2011 - 19:05 | 1956634 Gringo Viejo
Gringo Viejo's picture

G-U-N-S, A-M-M-O, F-O-O-D, H-2-O as well.

Wed, 12/07/2011 - 19:12 | 1956645 Atomizer
Atomizer's picture

Bernank calls it tradition.

Wed, 12/07/2011 - 19:16 | 1956652 txsilverbug
txsilverbug's picture

a "financial instrument"

Thu, 12/08/2011 - 00:37 | 1957289 IrritableBowels
IrritableBowels's picture

Well, it is MORE traditional than FRN's...

Wed, 12/07/2011 - 19:14 | 1956647 non_anon
non_anon's picture

got tungsten?

Wed, 12/07/2011 - 19:23 | 1956666 razorthin
razorthin's picture

bichez

Wed, 12/07/2011 - 19:26 | 1956670 css1971
css1971's picture

He seems to time his appearences to coincide with dips towards the 150 day moving average. Or is that just coincidence/paranoia?

Wed, 12/07/2011 - 19:27 | 1956674 JR
JR's picture

There is an answer to America’s political and fiscal problems. It is the man whom Treasury Secretary William Simon called the "one exception to the Gang of 535" on Capitol Hill – Ron Paul.  In Paul’s words, written October 3, 2011, “it is time to end the Fed”. Here is Paul in The Fed Twists, the Market Shouts:

Last week the Federal Reserve began the second incarnation of "Operation Twist", an attempt to drive down interest rates by purchasing long-term Treasury debt and selling short-term debt. This is just the latest instance of the central bank desperately flailing around doing something merely for the sake of doing something. Fed officials still do not understand – or admit – that the Fed itself caused the financial crisis by driving interest rates too low and relentlessly expanding the money supply. Thus, this latest action will just exacerbate the problem.

Markets, however, understand that the Fed has failed and has no clue what it is doing. This is why markets went into a tailspin after the Fed's new strategy was announced. Stock, bonds, and commodities dropped in price while the financial press wondered whether this worldwide sell-off meant that the entire system was collapsing. Not since 2008 had there been such a dramatic drop across so many different sectors of the market.

Because of continued rising inflation and the Federal Reserve's suppression of interest rates, investing in traditional safe havens such as savings accounts, mutual funds, and Treasury bonds has become unprofitable. Lots of money is moving through the system seeking a return on investments or at least some measure of safety, as increasingly desperate investors move their funds around in search of long-term profits and stability. Until the Fed stops its monetary intervention and allows interest rates to be set by the free market, investors will move their money in a volatile manner. They will invest in commodities and stocks while prices swing upwards, but will flee to bonds and cash at the first sign of a downturn.

The uncertainty caused by the Fed does help some people – professional traders on Wall Street for example. Increased volatility and huge price swings mean more opportunities for profit, as sophisticated electronic trading programs can buy and sell huge positions within a fraction of a second of a major market movement. But small businessmen are misled by the artificially low interest rates into making unwise investments, and those whose jobs vanish when the Federal Reserve's latest bubble pops suffer. Without the knowledge or ability to move with the markets or diversify overseas, average Americans see their savings stagnate or depreciate – along with their hopes and dreams for a better tomorrow.

The only way to return to a sound economy is for the Federal Reserve to cease and desist its monetary manipulation and allow interest rates to be determined by markets, just as the price of goods, services, and labor should be determined by markets. Everything the Fed is doing by pumping money into the economy benefits only the insolvent, too-big-to-fail banks. Low interest rates encourage consumers to take on more debt, meaning more profits for the banks issuing those loans. Purchasing mortgage-backed securities, as the Fed has done, keeps housing prices inflated, helping the banks who have non-performing mortgages on their books. However, it hurts consumers who continue to be priced out of the housing market. In order to maintain a decent standard of living for the American people and to restore the vibrancy of the U.S. economy, it is time to end the Fed.

Wed, 12/07/2011 - 21:50 | 1956973 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

That was an excellent analysis and call to arms, JR.  Well done.

Wed, 12/07/2011 - 23:26 | 1957143 Uchtdorf
Uchtdorf's picture

Very good comments. The only problem with ending the Fed is that every time someone tries that, they get nailed. It's going to require a concerted effort by a tireless people willing to sacrifice now for their economic liberty to be restored later. Too often now I hear only lone wolf, lock and load, unleash the Zombies rhetoric. Hang together or hang separately, as someone famous once said.

Wed, 12/07/2011 - 19:36 | 1956683 And Its Gone
And Its Gone's picture

All you gold lovers:   Didn't the gov. make gold illegal already once(Executive Order 6102)?  I don't see why they are going to let us out of their trap so easily by just buying gold...

Wed, 12/07/2011 - 20:19 | 1956778 Citxmech
Citxmech's picture

What gold?

 

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