Marc Faber: In The Age Of Cyber-Terrorism, Every Investor Must Own Gold

Authored by Shannara Johnson via Hard Assets Alliance,

Take it from “Dr. Doom”: own some physical gold and keep it out of the banking system.

Dr. Marc Faber, a legendary investor and the editor/publisher of the Gloom, Boom & Doom Report, is well known for his contrarian investing style.

In a recent Metal Masters interview with the Hard Assets Alliance, he noted that the biggest geopolitical risk for Americans today is not a conventional war but rather cyber-attacks that could take down the US power grid.

In such a scenario, gold would become an irreplaceable medium of exchange. But it’s not the only reason to own gold today.

Diversified Assets Outside the Banking System

Faber grew up in Switzerland right after World War II, a tough time that caused his family to distrust paper money and taught him the importance of precious metals as a safety net.

Faber remembers how his father talked about rich people as millionaires.

That, in the ‘50s and ‘60s and ‘70s, was a lot of money. Today, a million is nothing at all—small change. Unfortunately. When people talk about, ‘Oh, there is no inflation in the system,’ this is nonsense. Compared to assets, money has lost a tremendous amount of purchasing power.”

After working on Wall Street for over two decades, Faber’s assets consisted mainly of bonds, equities, and real estate. He says it was in the 1990s when he realized that “it’s good to have a diversified asset outside the banking system and not financially related” and began to purchase some physical gold every month.

The Fed largely ignores gold as an asset, he says, because “gold is an embarrassment to central banks.”

When the Lights Go Out, Bitcoin Goes Too

Regarding a possible war, Faber believes it’s unlikely that anyone will ever invade China or the United States. He thinks the true vulnerability lies in “wars that are fought not with tanks—they are fought by, say, somebody could switch off the light in New York, or the electricity, or the Internet. If you switched off the Internet, what would happen?”

This is where the merits of gold bullion become obvious, he says: “In these times, you actually want to have access to something physical that is a recognized medium of exchange.”

“Gold Is Driven by Money Printing”

When the Fed pursues loose monetary policies, Faber states, the people who benefit the most are the super-elite, the 0.01%. They have been moving ahead while the average American suffers:

“50% of American people have no assets. … They don’t benefit from money printing. Actually, they’re hurt because their cost of living is going up, and it’s going up more than the CPI would indicate.”

He believes “that the recovery, globally, is very weak” and the rapidly growing unfunded liabilities are a clear threat that could lead to another financial collapse.

“By being in equities and by being in gold, and also having some exposure to bonds, you have some diversification,” he says.


“Then you can hope when the hour of truth occurs, you will only lose, say, 50% of your assets, but your neighbor loses everything. So relatively speaking, you will have done very well.”

Click here to watch the full interview with Marc Faber for more advice on how to weather a crisis.


hibou-Owl Latitude25 (not verified) Mon, 08/21/2017 - 01:52 Permalink

I started buying gold at 309, brought the leg up and sold the lot at 1180.
It funded buying productive farmland, which I believe is the best next investment.
When we get the next collapse gold will be sold to liquidate debt. Farmland will provide food which is inflation proof (like Gold), and it currently attracts an EU subsidy.

In reply to by Latitude25 (not verified)

ET (not verified) Sun, 08/20/2017 - 18:05 Permalink

Gold is elite money.Cryptocurrencies were designed to divert money from gold so that the Chinese central bank PBOC could reach its goal for its gold reserve before the dollar suddenly loses its value.

ebworthen Sun, 08/20/2017 - 18:11 Permalink

Windmills, that is where the money is at.I'm telling you, windmills and windmill mining.My i486 can crank out some serious "coin" hooked up to a windmill.

Latitude25 (not verified) Sun, 08/20/2017 - 18:23 Permalink

Power lines are protected by protective relays.  These relays are basically industrial computers on private networks not connected to the www or in many cases on no network at all.  This is the way it is in the US.  In the EU they have started to deploy virtual relays on networks which I view as a huge risk to the power grid.  Hopefully the US will not follow the EU down this path of modenization amd extreme risk which could result in large outages due to hacking.

sheikurbootie Sun, 08/20/2017 - 18:29 Permalink

The rich man's creed:"Be right and sit tight"If you follow every trend, you'll end up being the sucker.  By the time a trend is a trend, you up being the last to know. I sold off millions in real estate in 2005 (I saw the signs of a bubble) and bought gold.  I was right then, I'll be right soon again.

redc1c4 (not verified) Sun, 08/20/2017 - 19:42 Permalink

if you own guns & ammo, plus know how to use them, getting gold will be easy after the crash.

Mon T (not verified) Sun, 08/20/2017 - 19:45 Permalink

Remember Faber will be right it is just a matter of when. Shep Wave is right in the meantime. Look at futures. How Do they know this on Friday?

Ben A Drill Sun, 08/20/2017 - 20:48 Permalink

The guy just said last week that he's not buying or selling gold. He said he would hopefully be smart enough to buy gold

at $1000.00 a oz.

How many different ways are there to say buy gold? At what price? I'm going to go out on limb and say.... buy silver under twenty dollars per oz.

Ben A Drill Gods Sun, 08/20/2017 - 21:50 Permalink

I bought 1 US Platinum Eagle BU 2016 last year. Looked like silver to me, so I was not impressed. Just wanted some Platinum, now, not so much.

I think I'm done buying coins anyways. Hate the mark up (premiums) If I ever do need to sell, I know I'm just going to get spot price, not the intitrinsic value of the coin.

Maybe I'm wrong about that but anytime you sell your not going to get a premium over spot price.

In reply to by Gods