Sell Equities And Buy Physical Gold Now While Prices Are Low

Faber said it’s a good idea to take money out of the stock market.

“I don’t think there is a lot of upside potential, but I think there is considerable downside,” he said.

Marc Faber, managing director of Marc Faber Limited and the author of the widely read monthly investment newsletter “Gloom, Boom & Doom” report, said weakness in China’s economy could spell big trouble global markets.

Faber said that if the Chinese economy grows at 3 or 4 percent—or even not at all, which he sees as a possibility—it will have a huge, negative affect on industrial commodities and the incomes of countries that produce them. In turn, he said, if countries such as Russia, Brazil or nations in Africa, Central Asia or the Middle East have less income, they’ll buy less from China, Western Europe and America, leading to very little earnings growth or an earnings contraction for those more prosperous economies.

China preferably would show trend line growth of 10 percent, as it has done for the past 20 years, Faber said.

Faber said it’s a good idea to take money out of the stock market.

“I don’t think there is a lot of upside potential, but I think there is considerable downside,” he said.

However, he said that markets are now seeing emerging markets and their currencies go lower, and “It could be that all the money in the world flows in to U.S. stocks and avoids emerging markets.”

Gold can eventually be a source of profit, according to Faber. He said it’s possible the price of gold can go somewhat lower, even though he thinks it’s now at a reasonable level. “I keep on buying gold and I have faith that gold prices will eventually be higher,” Faber said.

Faber said that, in general, corporate earnings will disappoint.

“They may not collapse, but I don’t think they will be as a good as expected,” Faber said. He said cyclical stocks, such as semiconductors and materials companies, will have tough time matching earnings expectations.

U.S. aluminum giant Alcoa kicks off the unofficial start to quarterly earnings season after the closing bell on Monday.

Source: http://finance.yahoo.com/blogs/big-data-download/mark-faber-china-puts-global-markets-risk-164954983.html

There’s Absolutely No Physical Gold For Sale

Whistleblower Andrew Maguire stunned King World News when he stated that during this brutal takedown in the price of gold, no physical gold has actually come on to the market. Maguire, who recently appeared in the CBC production “The Secret World of Gold,” takes KWN readers around the world on a final trip down the rabbit hole in part three of a series of extraordinary written interviews which have been released today.

Maguire spoke about the manipulative takedown in the metals: “Let’s start by looking at what happened on Wednesday morning because this is really where the intervention came in: In the very thin access markets, in very thin liquidity, we saw a surgical strike.

And it was designed to trip-off and accelerate end of quarter position squaring. There is no doubt this (manipulation) was Fed-backed and (agent) bullion bank instigated….

“This is the important part, these producers have to balance their books at the end of the quarter, and these guys were hoping for prices above $1,300. This was a highly predatory move, but it enabled these bullion banks to go some way towards replenishing depleted bullion inventories. But it was directly at the expense of these producers who had been holding out for a price rise well above $1,300.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/29_Andrew_Maguire_-_Absolutely_No_Physical_Gold_Has_Turned_Up.html

Physical Gold Market In Disconnect As Premiums Hit Record

With gold and silver getting smashed, today John Hathaway told King World News that premiums for gold have now hit all-time record levels as the physical market has completely disconnected from the paper market in gold.  Hathaway also spoke about the gold and silver smash and provided an incredible chart as well.  Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating.  

Eric King:  “John, we have this smash continuing in gold and silver, your thoughts here?”

Hathaway:  “Right now it’s just piling on by momentum players.  Remember, it’s also the end of the quarter so this is window dressing in reverse.  People want to show big profits in short positions.

All along this has just been naked shorting by the usual suspects — trading desks, the big banks, and hedge funds.  There is very little physical gold that’s being sold.  The mechanics (of shorting) are basically you post margin, and you short X amount of gold….

“Some of these (down) days you have seen volume that equals more than the annual mine production of the global (gold mining) industry.  That’s ridiculous to think that much gold could be acquired, positioned, and then shorted in such a short space of time.

It (the manipulation) is being done by the same guys who were messing around with LIBOR and are now being prosecuted.  There are allegations they are doing the same thing in FX (currency trading).  You know gold is a big, liquid market, so the capacity for a lot of players get into it and exploit technical weakness, which is what they are doing, is great.  So that’s what appeals to these same people.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/26_Physical_Gold_Market_In_Disconnect_As_Premiums_Hit_Record.html