Home > Marc Faber: Where To Hide Your Gold (GLD, SLV, IAU, SGOL, PHYS)
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Marc Faber: Where To Hide Your Gold (GLD, SLV, IAU, SGOL, PHYS)

March 19th, 2012

Dominique de Kevelioc de Bailleul:  Fearful of desperate governments taking desperate actions during the coming currency crisis, Gloom Boom Doom editor and publisher Marc Faber advises investors to keep gold holdings outside the reach of potential confiscators.

Speaking with Chris Martenson last week, Faber believes that central bankers will print money at any sign of a credit contraction or drop in economic activity.  Money printing, Faber said, is a strong reason behind rising oil prices, slowing economic activity especially in those countries that import it.  Get my next ALERT 100% FREE

The virtuous circle of money printing, higher oil prices, slower economic activity and more printing won’t stop, according to him.  Moreover, Faber speculates that, at some point, the money printing must stop and the financial system will become a catastrophe.

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As the system begins to savage financial institutions in the U.S. and Europe, too many investors will experience what customers of MF Global experienced late last year.  In response, these investors will most likely then turn to gold.  But, in doing so, they will also come under threat of confiscation by governments desperate to save the system.

“As you know, we had MF Global.  What did the clients get?  Less than what they had at the company,” Faber told Martenson.  “And I think eventually the financial system will be an MF Global, where you don’t get your money back from the banks and the investment banks and from the mutual funds and so forth and so on.  And so I think everybody has to think to himself: how do I protect myself against the Black Swan event?”

In the past, several Fed Governors have suggested that the Fed should unwind, or at the least, level its balance sheet at the first sign of accelerating consumer price inflation.  Faber said that any talk along those lines by the Fed should not be taken seriously.  According to him, no matter what the Fed says, it cannot reverse the credit-based Ponzi scheme without collapsing the system.

“I think the money printing will go on, unless the Fed would come up and say,  we’re no long going to print any money; the monetary base will remain steady,” said Faber.  “And even in that case I wouldn’t believe them.”

Martenson, who lost his $50 “placeholder” account with MF Global, asked Faber to speak on the subject of safe gold storage.

“Where is anything safe?  I mean, I think in a safe deposit box is relatively safe, but maybe not in a safe deposit box in the U.S.,” said Faber.  “If you look at the MF Global case, it seems—I don’t know for sure—but it seems some people got their money, but not others.  This is a very disturbing thing to happen in the financial system.  And when I see  this, I think we have to be very prudent, so I would hold a safe deposit box outside the U.S..

“Now the question is: how is it to hold a safe deposit box with a bank if the bank closes down.  And this happens,” Faber continued.  “You can also hold safe deposit boxes in duty-free stores, warehouses at airports around the  world. In Switzerland we have them; in Singapore we have them, and so  forth.  So that’s a possibility.”

Since the start of the financial crisis in 2008, Faber has said that, because the global economy is credit addicted, more and more investors over time will move into gold and equities as a means of preserving capital.  But there will come a day when central bankers cannot sell further debt issuance to rollover the  ever-increasing mountain of debt.  That’s when governments will turn to gold and seek to acquire it by any means, including confiscation.

“One day there will be a credit collapse, but I think we aren’t yet  there. Before it happens they’re going to print,” Faber told Financial Sense Newshour’s Jim Puplava in early December.  “And when printing as it  has done in the last 12 years in the U.S. leads to discontent populations, because when you print money then only a few players in the economy that benefit, not the majority of households.

“Populist political leaders vying for votes from the masses will opt to score  easy points with the 90 percent have-nots at the expense of the haves, with draconian taxes on assets such as gold and silver held by the haves, not just through taxes on capital gains, but maybe even through a wealth tax on the holdings.

“This is what the tyranny of the masses can do,” he said. 

Source: Transcript at ChrisMartenson.com;  audio interview is here.

Related: SPDR Gold Trust (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), Sprott Physical Gold Trust (NYSEARCA:PHYS), ETFS Gold Trust (NYSEARCA:SGOL), iShares Gold Trust (NYSEARCA:IAU).

By Dominique de Kevelioc de Bailleul From Beacon Equity Research

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap  stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stockmarket today, which have traditionally been shunned by Wall Street.  We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.


NYSE:GLD, NYSE:IAU, NYSE:PHYS, NYSE:SGOL, NYSE:SLV


 

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  1. Dont be an unarmed Sheep
    March 23rd, 2012 at 10:05 | #1

    Here goes Faber again advocating moving your gold and I assume silver to some overseas location. Like it will be any safer in a location in the US during a currency collapse. For such asmart investor his ideas on precious metal storage is somewhat naive. How does my placing my precious metals in a Swiss bank help me if I am living in the US fighting to survive a tyrannical government. NO, the best best to store your precious metals is in a place where only you know where they are and can be easily acquired in a time of need. Faber has been spewin gthis line of BS for way to long and noone ever challeges him.

  2. Frank
    March 21st, 2012 at 17:52 | #2

    I have mine in my bunker in the North Carolina mountains. Nobody will find it. I dug the bunker out myself, used concrete. I even have a secret escape tunnel to a door that requires digging (shovel at the ready) a couple feet to get out). My guns, shotgun reloaders, bullets/shells, but most importantly food and water, are stored there, too. When surrounded by 50 people with guns there is no fighting your way out, so you’ll ALWAYS need an escape plan, with a secondary (also hidden) place to run to. In this case, I’ve got a cave on my property even further up the mountain. Trouble is, I think a bear or some type of large animal is living there. I figure it’s either me or him.

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