Faber: 'Middle East Will Go Up in Flames'... 'Have To Be in Precious
Metals and Equities'
London AM fix this morning was USD 1,685.60, EUR 1,282.24 and GBP
1,068.26 per ounce.
AM fix was USD 1,698.00, EUR 1,286.17 and GBP 1,073.60 per ounce.
Gold fell $6.30
in New York yesterday and closed above the $1,700/oz level at $1,705.30/oz.
Gold fell in Asia prior to further modest price falls in Europe
which saw it fall below yesterday's inter day low of $1,694/oz.
Gold is now trading at $1,686.40/oz.
short term technicals are poor and a further correction to or below
the 200-day moving average at $1,670/oz is possible (see Barcap
view below). However, it is worth noting that golds weakness
has coincided with recent dollar strength and gold has not fallen
as much in euro, pound or other fiat currency terms.
of significant macroeconomic, systemic and monetary risk will support
the precious metals. As will the increasingly risky geopolitical
situation the risk of which is not priced into markets just
manager and long term bear Marc Faber, aka "Dr Doom",
says political risk in the Middle East has increased significantly
with war between Iran and Israel almost inevitable,
and precious metals and equities investments offer some safety.
risk was high six months ago and is higher now. I think sooner or
later, the U.S. or Israel will strike Iran it's almost inevitable,"
Faber, who publishes the widely read Gloom Boom and Doom Report,
told Reuters on the sidelines of an investment conference.
traded near $123 per barrel in volatile trade on Tuesday on fears
of a disruption in Iranian supplies. Israeli Prime Minister Benjamin
Netanyahu showed no signs of backing away from possible military
action against Iran following a Monday meeting with U.S. President
breaks out in the Middle East or anywhere else, (U.S. Federal Reserve
chairman) Mr Bernanke will just print even more money they have
no option...they haven't got the money to finance a war," said
to be in precious metals and equities ... most wars and most social
unrest haven't destroyed corporations they usually survive,"
He said that
Middle East markets had largely bottomed out, though regime changes
from the Arab Spring revolutions were unlikely to be investor-friendly.
that in uncertain times, investors had to reconcile themselves to
can't live with volatility, stay in bed," he said, pointing
out that even cash [sic].
who has earned the moniker "Dr Doom", earlier told the
conference that the likelihood of war in the Middle East was boosted
by Western powers' imperatives of keeping China in check, given
its dependence on Middle Eastern oil.
and the western powers know very well they cannot contain China
economically.... but one way to contain China is to switch on and
switch off the oil tap from the Middle East," he said.
to think the Middle East will go up in flames," he said.
with permission from GoldCore.
Marc Faber [send him
mail] lives in Chiangmai, Thailand and is the author of Tomorrow's
Best of Marc Faber