In the wake of plunging gold, people constantly asked when I would throw in the towel. I was somewhat puzzled by these repeated questions as I said initially, and repeated along the way, my play was for the long term, and that I was holding for the duration. During the most recent plunge, I responded "My only concern is when to add". I did so, yesterday. "I Am My Own Central Banker" I am not the only one who sees things this way. Marc Faber made similar comments in a recent video interview with Gold Broker. Link if video does not play: Marc Faber, US dollar, & the Swiss Gold Initiative Partial Transcript Marc Faber: Everyone always says, I want to buy low and I want to sell high. So I think for me, of course I own a lot of gold, and I need to buy more to keep asset allocation between 25% in Real Estate, 25% in equities, 25% cash and bonds, and 25% gold. I need to buy more. So for me this is a very happy event. I don't like to buy gold at $1,900 like in 2011. I like to buy it here or lower. Gold Broker: Do you think it will break under $1,000 like some people say? Marc Faber: Look. The forecasting record of people is horrible, in particular, the forecasting record of the Federal Reserve. So, I don't know, maybe it will go below $1,000 but my sense is that it will not stay below $1,000. .... I would use the current weakness as a buying opportunity. ... I'm telling everybody, you as an investor, and me as an investor, we cannot trust the government. ... I am my own central banker. I keep my own physical gold. I do not trust anyone of these FCKs. Gold Broker: [Asked Faber about the possibility of a stronger US$] Marc Faber: [Laughed then replied] ... Of all the currencies I see in the world, there are only four that I like: Gold, Silver, Platinum, Palladium. Nothing else. Gold Broker: How do you see the Swiss Gold Initiative? How does that affect the gold market? Marc Faber: I do not think it will affect the gold market. I am in favor of the gold initiative. ... And I would suggest they [the Swiss National Bank] should hold their foreign reserves 100% in gold, not just 20%. But equally, I am saying to myself I am my own central banker. I own my own reserves, in gold. Swiss Initiative in Perspective For my take on the Swiss Initiative, please see Swiss Gold Referendum in Perspective. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com
