Faber: “Governments Will One Day Take Away 20-30% Of My Wealth”
“MF Global, the depositors were also raided. It is nothing unusual. Philosophically I believe that we shouldn’t have deposit insurances, blanketed insurances by governments because it would force savers to be very careful with which bank they would deposit the money. The good banks would pay very low interest and take low risks and the banks that take high risks would have high interest. By the way, in Cyrus, banks were paying very high interest like in Lebanon at the present time I can get 6% on my deposits. So the depositors should have known that something is dangerous, but I would say that the principal now is very important to understand. Until now, the bailouts in Europe and the U.S. were at the expense of the taxpayer. And from now onwards, in my view, the bailouts will also be at the expense of the asset holders, the well-to-do people. So if you have money — like I am concerned — I am sure the governments will one day take away 20-30% of my wealth.”
“Gloom, Boom and Doom Report” Publisher Marc Faber discusses U.S. stocks, fiscal policy and the price of gold. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”
Faber: 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.
…..more articles at http://marcfaberchannel.blogspot.ca/
by Jordan Roy-Byrne The Daily Gold
When we discuss gold stocks we often refer to gold and silver stocks. Today we take a look at the silver stocks specifically.
Below is a chart of our partially weighted producers index which contains 14 of the largest silver producers. We didn’t cherry pick the 14. We went down the list and that includes a handful of companies which have really struggled in recent years. Anyway, the 56% in the current cyclical bear is well in line with history. Previous downturns have been 51% and 49% and then 85% from 2007-2008.
Only time will tell but there is a chance that this evolving spring bottom could be the right side of a major long-term double bottom. Keep an eye on the trendline above. A break above that and the multi-year outlook becomes all the more bullish given the lack of overhead resistance.
Zooming in (see below) we find that the market is holding slightly above its 2012 double bottom. The silver stocks put in a strong bullish reversal with volume four weeks ago. The market has yet to confirm the bottom but it could if it closes next week or the following week at five or six week high. Once that happens, the downtrend line becomes the next important resistance.
The silver stock ETF, SIL has also failed to close below the 2012 double bottom. It closed at $18.15 and faces key resistance at both $19 and $20.
There are a few other observations to note. First, note that SIL is showing relative strength against Silver. For whatever reason, the silver stocks in comparison to the gold stocks have fared better. The gold stocks (GDX, HUI) have broken below their 2012 lows while the silver stocks have not. Also, note the average volume in SIL. The 20-day average volume is roughly 100K shares. At its peak two years ago it was about 1.5 Million shares. That is 15 times higher!
Relative to gold stocks we were super bullish on silver stocks in 2010 but less so in 2011 and 2012. Gold leads Silver but once Gold finds its stride Silver heats up. If the precious metals bull market has another leg higher in it then we’ll move to an overweight position in the silver stocks at somepoint. The silver stocks as a group haven’t experienced a sustained breakout to new highs since 2007. If Silver is to advance to $40, $50 and beyond then that has incredibly bullish implications for the chart of our Silver Producers Index. The silver producers could be poised for leadership and incredible performance in 2014 and 2015. If you’d be interested in professional guidance in uncovering the producers and explorers poised for big gains in the next few years then we invite you to learn more about our service.
Good Luck!
Jordan Roy-Byrne, CMT
Investors have been wisely diversifying their portfolios to provide exposure to more than just U.S. stocks. Whether it’s emerging markets, real estate or gold bullion, a broad-based approach provides for a better night’s sleep.
Yet it’s fair to ask: Do commodities also have a place in your portfolio? After all, they seem to rise and fall with alacrity, and investors often only notice them after they’ve made sharp gains or plunges. Truth is, we have no crystal ball that tells us how this group will fare in 2013. We can look at the supply and demand backdrop for various commodities, but much hinges on the health of global economies.
…..read more and identify those commodity stocks that are yielding up to 10% HERE
“Please, you better hurry. I’m doing it anyway” Rogers tells CNBC.
“I want to make sure that I don’t get trapped.”
“What more do you need to know?”
Cyprus was “a warning shot to bank to depositors around the world.”
Rogers’ idea is that the risk of a confiscation of bank deposits now exists anyplace on the globe.
“Think of all the poor souls that just thought they had a simple bank account. Now they find out that they are making a ‘contribution’ to the stability of Cyprus. The gall of these politicians.”
“The losses imposed on Cyprus bank depositors by the European Union, European Central Bank (ECB) and International Monetary Fund (IMF) bailout should be a warning shot to bank depositors around the world,” says investment legend Jim Rogers, chairman of Rogers Holdings.
…..read more of what Rogers is doing HERE
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