Marc Faber, editor of the Gloom, Boom and Doom Report says the 18-month correction in the price of gold isn't over yet, but we're close enough that those seeking to insure themselves against an economic meltdown should start building positions now.

“We haven’t completed the correction which began in September of 2011,” Faber tells Breakout in the attached video. The price per ounce of gold has fallen but there's still too much speculative money in precious metals for a sustainable rally. “Sentiment for gold is improving in the sense that more and more advisers and investors are turning bearish,” he says.

Still, Faber doesn't care what price gold is trading at right now. To him it's not a speculative vehicle but an insurance policy. As such, not owning it all times is simply reckless in his view.

Rejecting the notion that one buys and sells gold hoping to sell it to a “greater fool” means investors need to posses physical gold. That's an entirely sensible idea on the surface, and the choice of many quite rational gold investors. But Faber has a unconventional definition of what it means to possess something in a tangible sense.

Storing gold in your house or bank isn't sufficient insurance. “You put it in a safe deposit box outside the U.S.,” he suggests. “You can also put it in a free port jurisdiction like Switzerland or Singapore or in Hong Kong.”

Free ports are locations with a more casual attitude about custom tariffs on foreign goods. Storing your physical gold in these sanctuaries makes sense under two conditions. First, you have to hope ownership rules will still be applicable in the event of a meltdown. Second, you need to have the means to travel thousands of miles over international borders without using any paper currency in anarchic conditions.

It's a strategy skewed heavily in favor of those with enormous existing assets or a willingness to build a pirate ship.

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