Lately, though, gold doesn’t seem like it can catch a bid.
“Despite the continued reverberations regarding the Cyprus bailout and its involvement of bank deposits, gold struggled to maintain the positive momentum created in the first two weeks of March and instead now looks very likely to move lower, towards $1580/oz,” wrote Deutsche Bank commodities analyst Xiao Fu in a note this morning.
So, what does Faber have to say about it?
This morning, on Bloomberg Surveillance with Tom Keene and Alix Steel, Dr. Doom was asked why gold wasn’t holding up.
This is actually an explanation as for why Gold/Silver is to go up. ~ Volubrjotr
Melt The Witch 2013
What would you do to take down the Gold market riggers? What would you sacrifice? How hard would you work if you KNEW that the culmination of your effort would end the long term manipulation of gold? As for me, I am very tired of fighting the Gold Cabal.
Here’s his explanation:
When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn’t flow evenly into the system.
Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S.
So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide.
Faber is, of course, still bearish on U.S. stocks. He told Bloomberg that he sees “considerable downside risk” in the market.
GOLD BANK RUN BEGINS? DUTCH BANK ABN AMRO HALTS PHYSICAL GOLD DELIVERY! – SilverDoctors.com
The Chinese are the “put” to the price of gold, the backdrop. The lower the price goes the more they accumulate. And the Russians and Indians are right there with them. The manipulation is a PAPER, highly leveraged manipulation. It will not work much longer. Sinclair says, and he has been there before, the paper market will go to cash.
There will be NO margin on Comex gold and silver contracts. In other words, buyers may as well go to the physicals because without “margin,” there will be no reason to hold paper contracts. The Hunt brothers were brought down when the silver market went to cash. This time, when it happens again, it will be something to behold.
And if you think the bullion banks (JPM and friends) will get their due, Sinclair has said for years that they will be the ones who are LONG when it happens and make the most money off of the swing. I guess that leaves the hedge funds holding the bag, because it is a zero-sum game and for every long there is a short.
It will be something to see, and a wonderful thing to be a part of, if you are on the right side of the move. I say, if you’ve got two or three years to wait, you will probably see it happen.
Considerable Downside Risk for U.S. Stocks – Marc Faber (wallstreetpit.com)
- THE C.I.A. CONFISCATION HAS BEGUN AT BANK SAFETY DEPOSIT BOXES. THE REPORTED SEIZURES ARE NOT YET WIDESPREAD, BUT EXPECT THEM TO BE SO. THE PATRIOT ACT LEGALLY PERMITS THE THEFTS, WHICH WILL PROVIDE AN ADDITIONAL SUPPLY OF GOLD FOR THE WALL STREET BANKER ROBBER BARONS.A Steve Quayle subscriber has reported that the two-dozen gold Krugerrands he kept stored in his safety deposit box have been taken in a bold swipe. The Fifth Third Bank is located in Cincinnati, the site of the sanctioned theft. After the confiscation, the bank manager sheepishly informed the man that a CIA agent was the culprit who cleaned out his supply of gold coins, but all the stored USDollar bills were left untouched in the safety box. Recall broad warnings concerning the rules delineated within the Patriot Act, which forbids usage of bank safety boxes to hold coins, jewelry, or any metal items of wealth. Only documents, contracts, papers, photographs, and other non-metallic objects like a treasured scarf are permitted. They have finally struck, thefts sponsored by the USGovt and its security agency overseers. Expect the location of thefts to grow much wider, with more prevalent reports. See the Silver Doctors article (CLICK HERE).
- Five reasons gold will hit an all-time record this year (mining.com)
- You are in great danger if you don’t own any gold – Faber (missionmining.wordpress.com)
- Faber to Maria: “You Don’t Own Gold And You Are In Great Danger” (zerohedge.com)
- Marc Faber: Buy Gold To Protect Against The Next Crisis (missionmining.wordpress.com)
- Gold Market Update (safehaven.com)
- Marc Faber: Buy Gold To Protect Against The Next Crisis; SPDR Gold Trust, iShares Silver Trust (etfdailynews.com)
- Central Banks’ Gold Purchases in 2012 Most Since 1964 (marketcurator.com)
- Top News: Bullion firm reveals that British holdings increased tenfold in five years (guardian.co.uk)
- What’s Wrong with the Financial Services Industry?