Courtesy of Mish.
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.
…
