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Tuesday, November 18, 2014 2:59 PM

Added To My Basket of Miners Yesterday; "I Am My Own Central Banker"

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In the wake of plunging gold, people constantly asked when I would throw in the towel.

I was somewhat puzzled by these repeated questions as I said initially, and repeated along the way, my play was for the long term, and that I was holding for the duration.

During the most recent plunge, I responded "My only concern is when to add". I did so, yesterday.

"I Am My Own Central Banker"

I am not the only one who sees things this way. Marc Faber made similar comments in a recent video interview with Gold Broker.

Link if video does not play: Marc Faber, US dollar, & the Swiss Gold Initiative

Partial Transcript

Marc Faber: Everyone always says, I want to buy low and I want to sell high. So I think for me, of course I own a lot of gold, and I need to buy more to keep asset allocation between 25% in Real Estate, 25% in equities, 25% cash and bonds, and 25% gold. I need to buy more. So for me this is a very happy event. I don't like to buy gold at $1,900 like in 2011. I like to buy it here or lower.

Gold Broker: Do you think it will break under $1,000 like some people say?

Marc Faber: Look. The forecasting record of people is horrible, in particular, the forecasting record of the Federal Reserve. So, I don't know, maybe it will go below $1,000 but my sense is that it will not stay below $1,000. .... I would use the current weakness as a buying opportunity. ... I'm telling everybody, you as an investor, and me as an investor, we cannot trust the government. ... I am my own central banker. I keep my own physical gold. I do not trust anyone of these FCKs.

Gold Broker: [Asked Faber about the possibility of a stronger US$]

Marc Faber: [Laughed then replied] ... Of all the currencies I see in the world, there are only four that I like: Gold, Silver, Platinum, Palladium. Nothing else.

Gold Broker: How do you see the Swiss Gold Initiative? How does that affect the gold market?

Marc Faber: I do not think it will affect the gold market. I am in favor of the gold initiative. ... And I would suggest they [the Swiss National Bank] should hold their foreign reserves 100% in gold, not just 20%. But equally, I am saying to myself I am my own central banker. I own my own reserves, in gold.

Swiss Initiative in Perspective

For my take on the Swiss Initiative, please see Swiss Gold Referendum in Perspective.


Marc Faber is author of one of the best investment books ever written: Tomorrow's Gold.

In spite of the title, the book is not really about "gold" but rather investment opportunities. It's my number 1 pick in investment reading. If you haven't yet read it, please do yourself a favor and pick up a copy.

Mike "Mish" Shedlock

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