Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Marc Faber in 2014. Image from archives
Well-known market commentator, contrarian investor and gold bull, Marc Faber, is coming under fire for comments made in his latest missive for the Gloom, Boom & Doom Report.
In the October edition of his closely-followed newsletter 71-year old Swiss-born Faber who lives in Thailand writes:
“And thank God white people populated America, and not the blacks. Otherwise, the US would look like Zimbabwe, which it might look like one day anyway, but at least America enjoyed 200 years in the economic and political sun under a white majority.”
“I am not a racist, but the reality — no matter how politically incorrect — needs to be spelled out.”
Canada’s Sprott Inc announced on Tuesday that Faber was asked to resign from the board of the $10 billion alternative asset manager and precious metals investment firm:
“The recent comments by Dr. Faber are deeply disappointing and are completely contradictory with the views of Sprott and its employees,” said Peter Grosskopf, CEO of Sprott.
Faber also sits on the board of Vancouver-based Novagold Resources which is advancing the Donlin project in Alaska and Robert Friedland’s Ivanhoe Mines which has copper projects in the Congo and precious metals investments in South Africa.
Later on Tuesday Ivanhoe Mines released a statement that the company had requested and accepted Faber’s resignation:
Ivanhoe Mines’ values of equality, respect and dignity for all people are a fundamental underpinning of the company’s enterprise and the conduct of every aspect of its business. There is zero tolerance for racism. Ivanhoe Mines disagrees with, and deplores, the personally-held views about race that Marc Faber has published in his current investment newsletter.
Novagold announced Faber’s departure from its board in a terse statement on Tuesday afternoon noting the resignation from the board is effective immediately.
BusinessInsider reports a number of media outlets including Fox Business, CNBC and Bloomberg TV said they do not intend to book Faber in future, but Faber is standing by his report:
“If stating some historical facts makes me a racist, then I suppose that I am a racist,” Faber wrote in an email to Bloomberg and CNBC. “For years, Japanese were condemned because they denied the Nanking massacre.”
10 Comments
George Campbell
If he’s stupid enough to say that, it’s no wonder his prognostications are always wrong. The big ego, the self destructive statements, the inability to do his job … it screams alcoholism. Irregardless, he’s shown his true stripes. I’ll bet he has been making racist comments in private for years, and all those 1% people he hangs with either agree with him or go along to kiss up. He finally got called out because he went too far – but this shows how a lot of those people up there think.
MrNIKOLA
I guess we can assume that Mr. Faber forgot who sent the global economy into a tailspin in 2008 by bundling toxic mortgages into toxic financial products and then betting against those same products while selling them to unaware customers: Hint – It wasn’t black folks.
Danny
At least Zimbabwe is basking in freedom, happiness and wealth after 37 years of independence and majority rule. Forget about what these old racist white people say, the reality of facts is what is important. The majority Zimbabwean know better, and are happy under their own leaders, especially Robert Mugabe the freedom fighter from colonialism, and esteemed leader of the people.
Restless Boomers
The only thing Faber did wrong was exercise his right to freedom of expression. Stating the truth as he knows it definitely wasn’t politically correct and he, like all who speak out, is now paying the price. Glad Marc had the courage (or stupidity) to speak his mind.
Don Ready
I think Danny is being sarcastic, but if he is not, well, no point carrying on this conversation.
MrLG
Ivanhoe cut him loose. He’s stupid, he deserves what he gets.
stonecarverca
Political correctness. Who’s behind such insanity! As even Popeye said, “I am what I am, and that’s all that I am.”
So now anyone with a contrarian viewpoint is becoming the new minority, to be bullied and bashed. What a wacko world we live in.
Faber said it, it is his POV, like him or hate him, but don’t vilify him. Vilify people like mass-murdering dictators instead.
Macd
These white racists are working in Tandem with their fellow whites who had their comfort on stolen land cut short by the revolutionary , you know who. The only African leader to make madam and boss stand on their heads. After all Winston Churchill once said ” If you throw stones at every barking dog , you will never reach your journey ” They bark whilst Zimbabweans till their land.
Wayne Waters
Marc, you are not a “Racist”, you are a “Idiot”!
Brent Milburn
I have always appreciated the thought provoking perspective that Dr. Faber has brought to the conversation around global economics. I’m not sure why he felt his comment was worth including in his newsletter. What was the point he was trying to make and how was it relevant to the rest of his article?