Marc Faber on why This Disaster is Different

 

by John Galt
March 27, 2013 21:15 ET

 

In this interview with Marc Faber on Bloomberg Surveillance this morning, the most dangerous point that I’ve ever heard him make about the upcoming systemic crisis (my words, not his) where he states that “even in gold it will be difficult to hide.” I point to this chart from 2008 to highlight this point:

GOLD_2008

 

The gold chart from 2008 illustrates a demonstrative “death cross” as circled on the chart. In 2012 to today however, there is another ominous leading indicator which I think portends validity to Mr. Faber’s commentary this morning:

GOLD_2012_MAR212013

Of course a 28% correction was followed up with an almost threefold increase which means after a potential correction in real physical gold, not paper gold prices, odds are that we would see $4000 gold in very short order as desperation sets into the mindset of Bernanke and the Fed. Here is Mr. Faber’s interview from Bloomberg this morning for your viewing pleasure:

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