Faber: “Physical Gold” In Switzerland and Singapore Is 20% Of “Net Worth”

Published on 30 January 2014

Today’s AM fix was USD 1,254.00, EUR 922.20 and GBP 761.89 per ounce.
Yesterday’s AM fix was USD 1,254.75, EUR 917.89 and GBP 756.42 per ounce.

Gold climbed $15.70 or 1.25% yesterday to $1,269.80/oz. Silver rose $0.20 or 1.02% to $19.78/oz.

Gold is marginally lower in most currencies today paring the first monthly advance since August. The gains yesterday came despite the U.S. Federal Reserve further reducing their massive bond buying programme to $65 billion a month.

Bullion for immediate delivery lost as much as 0.6% to $1,260.10/oz and was at $1,261.46 at 1500 in Singapore. Prices rose 0.8% yesterday on concern a rout in emerging-market assets may deepen and lead to contagion, leading to safe haven demand.

Increased physical demand in Asia has helped gold to rebound from a six-month low on December 31.

Marc Faber is back with a wide-ranging must read interview with Barron’s. The astute investor who has a clear track record in protecting and growing wealth urged investors to own physical gold.

"Own physical gold because the old system will implode. Those who own paper assets are doomed."

Faber added,

“I have no faith in paper money, period. Next, insider buying is also high in gold shares. Gold has massively underperformed relative to the S&P 500 and the Russell 2000. Maybe the price will go down some from here, but individual investors and my fellow panelists and Barron's editors ought to own some gold.”

With regards to his allocation to physical gold, Faber was as transparent and candid as ever and said that he holds about 20% of his net worth in physical gold.

Marc Faber

“About 20% of my net worth is in gold. I don't even value it in my portfolio.”

Faber told the Wall Street Journal in December 2012 that:

"Individuals are making a mistake if they're holding all their assets in one country.…I still have the majority of my gold in Switzerland, but I am already moving gold to Asia," he said.

Mr. Faber said his Asian storage center of choice is the Singapore FreePort, located in its own duty-free zone near the city's airport.