Faber Favours Physical Gold, Silver and Platinum To Bitcoin

The Baltic Dry Index,  a measure of commodity-shipping rates, has collapsed 39% in just the nine trading days of 2014. It has fallen from 2277 at the end of December 2013 to 1370 today (see chart). This key indicator of global economic health is a warning signal for the global economy in 2014.

Today’s AM fix was USD 1,238.00, EUR 908.56 and GBP 753.91 per ounce.
Yesterday’s AM fix was USD 1,248.75, EUR 913.10 and GBP 760.97 per ounce.

Gold fell $11.40 or 0.91% yesterday, closing at $1,243.20/oz. Silver slipped $0.26 or 1.27% closing at $20.19/oz. Platinum rose to a two-month high of $1,446.75 yesterday on concern that industrial unrest at the world’s three biggest platinum producers will weigh on output in South Africa, the biggest producing country.

Gold retreated for a second session today. A rally in stock markets prompted by stronger than expected U.S. retail sales data may have led to profit taking.


Platinum in U.S. Dollars – (Monthly – 2004 to Today)

China has granted licenses to import gold to two non Chinese banks for the first time, according to Reuters. The move to take advantage of the largest gold consumers is gathering pace. China’s gold imports more than doubled last year to over 1,000 tonnes – ousting India as the biggest buyer – as demand soared to unprecedented levels.

The Baltic Dry Index,  a measure of commodity-shipping rates, has collapsed 39% in just the nine trading days of 2014. It has fallen from 2277 at the end of December 2013 to 1370 today. This key indicator of global economic health is a warning signal for the global economy in 2014.

Marc Faber told Bloomberg TV in an interview that, “I prefer physical gold and silver, platinum to bitcoin. How do you value a bitcoin? I can value gold to some extent and compare say gold to the quantity of money that is floating around the world, to the wealth increase, and to the monetary base increase, to the credit increase, and so forth and so on, and to the production costs. So I have an idea of where gold should be.”

A diversified precious metals portfolio with allocations to gold, silver, platinum and palladium remains prudent.

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15 comments on “Faber Favours Physical Gold, Silver and Platinum To Bitcoin
  1. Rioting like a chimp says:

    Blasphemer! Nuff said :)

    Although I think BTC is a con I reserve the right to be wrong and have egg on my face.

  2. sam says:

    @Rioting like a chimp

    I think you’re half right. BitCoin I think is the start of something big, but the currency that will really take off will be based on the ideas and technologies crypto currency people are starting to establish.

    the problem with it is that there just for most people it’s still too complicated.

  3. palika says:

    lets ask every old person what they think of bitcoin. good start!

  4. mijj says:

    until the dictatorial power of the Dollar is broken, predictions of the price of Dollar/Gold exchange rate rest on predictions of Gold price manipulation.

    The sooner Bitcoin becomes established, the sooner Gold-Dollar exchange rate will reflect Gold significance.

  5. YoLithos says:

    There’s reportedly an experiment where people raised in round houses, who had never seen a rectangular room, continued not to “see” it, when placed inside one. Additionally, they could not correctly judge distances and sizes inside it. It’s similar to the “gorilla in the picture” effect.

    Too many people can do socially very complicated things : drive, set up parties, meetings, games, barbeques, dinners, businesses, companies. But can’t understand a music-box. Or a player-piano. They can understand engines and suspensions, but not an old telephone pickup.

    Bitcoin is like that. Toddlers will learn to use them – well – as quickly as they wise up to pads and smartphones today. They’ll be getting candy and buying games and comics and merchandising stuff with it as soon as they’re available. They’ll be able to “see” and understand it enough to “drive” it, even if not fix it – or change the tires.

  6. jogador says:

    i like bitcoin only for trading, don’t see myself hording cryptocurrencies (quick but and quick trades)

  7. Jay says:

    Partially agree with Faber … Call BTC currency … with gold/silver as money back-up for real wealth preservation. That can work. I am very pro bitcoin as daily currency if and when it is a bit more stable. For now I see it as a great gamble that could make a lot of money one day, but by the same token may be taken out by new legislation simply putting a stop to it. Gold/Silver as currency are not practical unless you buy a nice home … but not for a loaf of bread or a burger …

  8. Mini US says:

    I think ‘they’ are letting Bitcoin run and evolve without doing any of the work.
    I mean, it is going to be the future no doubt, and Max and all the intelligent people who think these things up and develop them will profit.
    However, in the long run it will be like inventing the splitting of the atom.
    Great idea and amazing minds that discovered and developed it ….
    only to be used for evil in the end by ‘them’.

  9. Mini US says:

    Faber – “So I have an idea of where gold should be.”

    Oh really Mr Faber ;-)

  10. BankingThiefs says:

    Dear Marc Faber,

    Gold is a hard to cheat currency system,
    Bitcoin is a hard to cheat currency system.

    Gold’s intrinsic value comes from the cost to mine it,
    Bitcoin’s intrinsic value comes from the cost to mine it.

    Gold held at central banks doesn’t move, it just changes ownership,
    Bitcoins held in the block chain don’t move, they just change ownership.

    Nobody knows how much gold is in Fort Knox,
    Everybody can see Bitcoin’s public ledger.

    Gold is not easy to divide between billions of people,
    Bitcoins are designed to divide into 2.1 quadrillion units.

    Gold is costly to transport and secure,
    Bitcoin is cheap to transport and secure.

    Gold is last gen,
    Bitcoin is next gen.

  11. backchecking says:

    Bitcoin’s PRIMARY utility is trading.

    Gold and silver’s primary utility is wealth preservation.

    Both have their place.

    The PTB are making all three very, very, compelling additions to any portfolio.

    With Bitcoin you can get your wealth out of harms way — without being shaken down by crooks and revenuers.

    The real reason that gold is held in such high esteem: you can bury it for centuries and it does not corrode. That unique property makes it the ultimate stash.

    The real reason that silver is traded for daily needs: it’s the ‘Goldilocks’ of metals. Not so valuable that no-one wants to let go…(gold is blood money/ ransom)… not so common that you have to lug it by the barrow. It’s ALWAYS been the primary commercial specie — and is destined to resume that role after the PTB screw up the plastic economy via digital identity theft, epic in scale.

    (Thank you 0-care.)

    BTW, the ‘money-changing’ aspect of commercial banking in the plastic economy era needs study. It’s quite a break from banknote exchanging. It permits the money rolling class a toll on everything that passes. That’s never been practical before.

    De facto, the banking sector is able to exact its own ‘excise tax’ upon the retail sector… since it is a cartel.

    That tax appears to be at least 2% — across all markets.

    No wonder Citicorp’s Reed thought that credit cards were nirvana!

  12. Mini US says:

    Rickards and Roman Saskiw deabte Gold Vs Bitcoin…

    http://www.youtube.com/watch?v=OramhrxZMF4

  13. Mini US says:

    Sorry, Skaskin.
    And its debate.

    Skaskin likes gold too, but he likes bitcoin better :-)

  14. trooper dave says:

    The fiat system is falling apart. The gubmints would like more control and tracking of their stupid sheep civilians. Huge corporations would like to take over every aspect of life. Track and control in a world where all transactions and interactions are done between human beings using a digital connection. No more cash, no more barter, no more human exchange, no more speaking to your neighbour without the gubmint monitoring what you say.
    All this is within grasp of the sick control freaks but that pesky bitcoin, digital number used for transaction in a virtual world, is putting a spanner in the works because people can hide it under a rock!!! Oh please1 Gubmints have boots and will kick the “virtual rock” away, if there is really any rock to hide behind. Then it is goodnight, you are in the crosshairs and no escape.

  15. Rioting like a chimp says:

    @ BankingThiefs

    Further to your piece startibng with “Dear Marc Faber”, I respond in CAPS so that readers can differentiate:

    Gold is a hard to cheat currency system, (NO GOLD IS MONEY NOT CURRENCY, SEE REPLY BELOW. GOLD CAN BE EASILY CHEATED WHETHER IT BE BY CLIPPING COINS TO COATING TUNGSTEN BARS. DUE DILIGENCE IS NEEDED WHEN BUYING GOLD.
    Bitcoin is a hard to cheat currency system. THERE HAS BEEN AN INSTANCE OF CLONING BUT WAS RAPIDLY RESOLVED BY BTC PROCESS. I AGREE DIFFICULT TO CHEAT BY THE AVERAGE PERSON BUT TIME WILL TELL BY CLEVER GROUPS.

    Gold’s intrinsic value comes from the cost to mine it,SORRY BUT THIS IS PLAIN WRONG. GOLDS VALUE IS BY ITS DESIREABILITY FOR DECORATION THEN BECAME A MONETARY METAL. MINING ENFORCES THAT ENERGY AND SKILL MUST BE SPENT.
    Bitcoin’s intrinsic value comes from the cost to mine it. (HOGWASH HAS BEEN OFFERED WITH TALK OF PRECIOUS NUMBERS BUT THIS IS NONSENSE. BTC MAY OFFER OTHER VALUE THOUGH BUT IF THIS IS REMOVED THEN EXPECT BTC TO GO TO ITS INTRINSIC VALUE OF ZERO. AGAIN, MINING IS A SMALL ERRONIOUS JUSTIFICATION).

    Gold held at central banks doesn’t move, it just changes ownership, AGAIN SO WRONG. GOLD IS MOVING MANY THOUSANDS OF MILES TO THE EAST FROM THE WEST.
    Bitcoins held in the block chain don’t move, they just change ownership. I’LL TAKE YOUR WORD FOR IT.

    Nobody knows how much gold is in Fort Knox, YES WE DO. FOOK ALL. SLICK WILLY CLINTON AND REAGAN REMOVED IT TO NEW YORK AND OTHER SITES. CHINA IS BUY THE VAULTS JUST TO ANSWER THAT VERY SAME QUESTION. THE FEELING IS THAT US HAS NO GOLD AND EVEN THE UK QUEENS GOLD IS NOW GOING.
    Everybody can see Bitcoin’s public ledger.

    Gold is not easy to divide between billions of people, SORRY BUT BOLLOCKS. GOLD CAN COME IN ANY DENOMINATION. 1/1000TH GRAM = 3P.
    Bitcoins are designed to divide into 2.1 quadrillion units. YES JUST LIKE A STOCK DILUTION BLOWING THE WHOLE 21MILLION BTC CAP MYTH OUT OF THE WATER.

    Gold is costly to transport and secure, MOVING GOLD CAN BE RISKY. RONNY BIGGS WOULD HAVE DISAGREED WITH YOU ON THIS.
    Bitcoin is cheap to transport and secure. THERE HAS BEEN BTC THEFT SO AGAIN THE IS RISK.

    Gold is last gen,
    Bitcoin is next gen. FACEPALMING AS A READ THIS STATEMENT OVER AND OVER AGAIN.

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