Comments on: Faber: Gold Permanently Over $1,000

By: VangelV

VangelV — Sun, 15 Nov 2009 04:44:54 +0000

“Faber’s a trader like most of us, probably talking his book. Pros: Technicals look good, Chinese are/could be driving price higher, nowhere near inflation adjusted high.”

I recall Faber making a very simple call in 1999. He said that the safest bet over the next decade and half would be to be shorting the Dow and buying gold because the Dow/Gold ratio would fall from more than 40 to less than one.

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Fri, 13 Nov 2009 11:16:04 +0000

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By: ItalicBold

ItalicBold — Fri, 13 Nov 2009 07:09:05 +0000

Faber isn’t one to just throw a statement out there. He was humbled early in his career by doing that. For him to say something like this means that the chance for gold to do this is statistically very very unlikely in his opinion. And for those of you who thinks he is a bubble enraged fool, he warned that oil was in a bubble shortly before it collapsed.

By: DosZap

DosZap — Thu, 12 Nov 2009 23:25:24 +0000

Never say Never…………………………
Faber stepped on it last week.
He stated the Dollar was as useless as Wallpaper, and done for.
2-3 days later, He said he’s see’s it going UP quite a bit.

Just shows you, even the wealthiest,most savvy make errors…………
His comment, while I disagree, does hold a margin of saftety.

With our National Debt figures, and CB’s openly snagging Gold reserves(and at Mkt rates), it does lend some degree of saftey to his comment.
With 600 Trillion in derivatives floating around, there are lot’s of HUGE (bad) surprises still to come……….
I am not looking forward to them………..

By: Pat G.

Pat G. — Thu, 12 Nov 2009 22:57:41 +0000

I wish people wouldn’t they shit like that about an investment. It scares off the weak hands & emboldens the shorts. Does he have a crystal ball or what?

By: Raphael

Raphael — Thu, 12 Nov 2009 22:26:40 +0000

I have been an advocate of gold as an investment for many years. I allocated the greatest part of my savings to gold in 2003 when it traded below $350 an ounce, and I can’t say I regret that decision. I believe gold is still in a bull market, however now may not be a fantastic entry point:

http://raphaelkahan.blogspot.com/2009/11/gold-is-overbought.html

By: comet52

comet52 — Thu, 12 Nov 2009 21:35:52 +0000

Market top occurs when retail is well-invested, not just interested. Will take more time, I’d say early 2010 will be blowoff time. Feb-March timeframe.

“Listening to Clark Howard the other day. He said his show is being inundated with calls asking about investing in gold. Retail is getting interested, which screams MARKET TOP.”

By: Paul Jones

Paul Jones — Thu, 12 Nov 2009 20:27:50 +0000

Talk about a contrary indicator!

All it would take would be some symbolic gestures towards fiscal sanity by the Obama administration, and the bubble will burst on a dollar rebound.

One may think about dumping gold at this point for a correction.

By: BuffaloBob

BuffaloBob — Thu, 12 Nov 2009 17:51:55 +0000

Listening to Clark Howard the other day. He said his show is being inundated with calls asking about investing in gold. Retail is getting interested, which screams MARKET TOP.

By: Bruce in Tn

Bruce in Tn — Thu, 12 Nov 2009 17:48:30 +0000

http://www.cnbc.com/id/33884045

Given the firm’s anticipated profits and supersize bonuses, which have touched off public furor, it is no surprise that Goldman [GS 179.75 -0.10 (-0.06%) ] said recently it would increase its charitable giving. It has set aside $200 million to nearly double the size of its main foundation.

Long before the financial crisis erupted, though, there were calls for even more, and those calls have stepped up in recent months. John C. Whitehead, the retired co-chairman of Goldman Sachs and former head of its foundation, said in a May 2007 interview with Bloomberg News that the pay levels on Wall Street were “shocking” and that he had tried unsuccessfully to persuade Goldman to give $1 billion to charity.

But the money allotted for its foundation is dwarfed by the sums that will be doled out to its bankers. In the first nine months of this year, the firm set aside about $17 billion for bonuses and other compensation.