May 20, 2013
Gold prices continue to take a beating with futures at $1,354 an ounce.
But, he said that he isn’t keeping it in the U.S. “I bought gold at $1,400, I buy every month some gold, and I have an order to buy more at $1,300 because I want to keep an allocation towards gold – physical gold – and not stored in the United States at all times.”
Here he explains why he isn’t keeping it in the U.S. via CNBC and Yahoo Finance:
Now you’re emphasizing stored outside the U.S.. We’re a pretty safe country Marc, why do you have to keep the gold out of here?
Well, safe country? I’m not so sure about that under the present government. But in 1933, gold was taken away from Americans. The government paid them $25 and after, they revalued the gold to $35. So, basically what the government can do once again, and that is a possibility. They could artificially depress, manipulate the price down and then say ‘Gold is illegal to be held. We have to collect all the gold from the citizens.’ Say if they manipulated the price down to $1,000. They could collect it at $1,000 and then revalue to $10,000.
That’s possible but do you believe it is probable Marc? That would be a Black Swan kind of event or a cold swan type of an event for you. That’s not your base case.
It’s not probable… Correct. I’m not a believer in the manipulation theory. I’m not a believer in all the conspiracy theories. I’m a believer that the market went down because there was a technical break and also because stocks are so strong. So, when people look at their gold and they look at the stock market that goes up every day, they then decide ‘Gold is dead. Let’s buy stocks’ because, at heart nowadays, everybody is a momentum player. The fund managers who must outperform the index, the hedge fund guys, the high-velocity trading people, the algorithmic people – they’re all momentum players. What moves up, they chase. What moves down, they sell.
This article was posted: Monday, May 20, 2013 at 11:15 am