– Mark Faber Fears “Stocks Could Be Dead Money For A While” But “Gold Has Bottomed” (ZeroHedge, Oct 27, 2013):
“Since September 2011’s $1921 peak, gold has been in correction mode,” Mark Faber tells Barrons in this brief clip, but the overhwleminly bearish sentiment combined with the major accumulation (most notably by China) means “gold prices have probably bottomed,” and some gold mining stocks are well positioned. While Faber has recently expressed concern at the potential for a major correction in stocks, he notes that there are pockets of value worth investigating including European Telcos and Indo-China travel-related stocks. However, the Gloom, Boom & Doom report writer warns that “stocks could be dead money for a while.”
On Gold and Gold Miners:
Gold peaked at $1,921 an ounce in September 2011. Since then, it has been in a correction mode. Sentiment is bearish, but some countries are accumulating gold, notably China, which will buy an estimated 2,600 tons this year, exceeding annual production. Prices probably are bottoming.
Gold-mining shares aren’t expensive either, although many exploration companies won’t make it. If you buy the miners, look for companies that have raised capital already or have sufficient reserves. They are best-positioned to survive the next few years if there is no upturn in the gold price.
Full Barrons’ Interview below:
On a different subject, here is one for you that just hit the Guardian.
You have heard there are lies, damn lies and statistics?
These are damn lies, and totally mendacious in content.
The entire world has been spied up, the US seems to want a world war, with us as the target. This is the most insane thing I have ever heard.
I have commented to you more than once the current political atmosphere feels like 1940…..but this time, it won’t be Germany…..it will be the US.
It is as if they want a big war……..the world has gone crazy.
Oh, here is the link.
http://www.theguardian.com/world/2013/oct/28/nsa-oversight-surveillance-anger-deepens-europe