Marc Faber on Gold, Silver, Uranium + Adyton Resources CEO Interview
What this covers
VERY IMPORTANT WARNING: None of the companies have paid for the production of this video.
However, this channel is a business that intends to receive monetary compensation for the creation and publication of video interviews. There will always be a conflict of interest which means you can never rely on anything said herein.
The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The viewer acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. Resource Talks and all parties involved in the management of the business strictly disclaim any and all liability for losses and/or damages, whether direct, indirect, special, or consequential, or other consequences, howsoever caused, arising out of any use or reproduction of the content published by Resource Talks, or any decision made or action taken in reliance upon it. By consuming this content, all consumers vow to release Resource Talks and all parties involved in the management of the business from all claims, proceedings, or consequences.
The host is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume him biased, and assume he doesn't know much more than a potato does.
The views and opinions expressed in this interview are those of the guest and do not represent the views of the channel or the host.
No recommendations are being made to buy or sell any securities in this video.
The mining and exploration space is highly likely to lose you money. Failure is the norm and should be the expectation. Don’t risk what you can’t afford to lose.
The minimum risk on anything mentioned in this publication is 100% loss of capital. Read the official filings on www.SedarPlus.ca.
I spoke with Marc Faber, and Adyton Resources in this episode.
Timestamps: 00:00 - Introduction 01:18 - Marc’s views on global GDP and economic growth 08:52 - Bullish or bearish: Marc’s view on various commodities 21:26 - Marc’s outlook on real estate 27:08 - Marc’s views on the US stock market and the S&P 28:55 - Marc's opinion on Canadian mining stocks 32:12 - Marc’s view on current political and economic risks 38:58 - Marc’s biggest concerns for the market 43:48 - Has Marc been too bearish for too long? 50:29 - Contact details: Marc Faber 51:18 - Important Warning 54:43 - Adyton Resources (TSX-V: ADY) Company Overview 01:01:25 - Adyton Resources (TSX-V: ADY) Company Interview
Source description (no synthesized summary yet).
Mark Faber argues that government-reported GDP growth statistics are unreliable due to hidden inflation, real economic growth has stalled since 2018-2019, and investors should position for currency depreciation and asset inflation by avoiding overpriced US equities while selectively investing in undervalued real assets, precious metals, and emerging markets.
- GDP figures are manipulated through inflation assumptions controlled by the same governments that benefit from overstating growth
- Real-world indicators like car sales, airport traffic, and household purchasing power show economies below 2018-2019 levels, contradicting official statistics
- Money printing by central banks will continue as the only politically viable option, driving asset prices up in nominal terms while real wealth for typical households declines
This asset isn't compiled yet
You're seeing its claims, ranked. Compile it to build the argument threads, weight them, and check each claim against your library — the full view.
The rise and fall of manufacturing centers demonstrates economic gravity shifts: Manchester was the richest city around 1830-1840, then manufacturing shifted to the US East Coast, then to the Midwest around Chicago and Great Lakes, then to California, suggesting permanent reversal of urbanization patterns is possible.
“look at Manchester Manchester was lucky it was the one of the richest cities in around 1830 1840 and then the manufacturing uh Center shifted more to the US first to the east coast then to the Midlands in other words the region around Chicago and the Great Lake districts and later to California”
The historical Bougainville/Panguna mine conflict demonstrates that central government support is insufficient without local community support; loss of local support led to project demise and multi-decade non-restart
“look it's had some challenges historically hasn't it I mean look what happened at banville with the great panguna mine um which was operated by by Rio tinter I mean that's that's a long time ago now but I think banville and the and the learning from banville is really the most important thing and that is um in PNG um whether you think you've got um or irrespective of having um full political or national government support um if you have that but without local support um you will put your project at risk and that's exactly what happened at for re or my interpretation they certainly had central government support but they didn't have the support of the local people and ultimately the power of the local people led to the demise of that project”
Papua New Guinea is a democratic Westminster-style government that achieved independence in 1975 and has had 8-9 prime ministers since then, demonstrating reasonable political stability comparable to Australia's rate of PM changes
“it's got that um perception and and you raise it Antonio because actually you know um you know it's it's a it's a democratic country now it achieved Independence in uh 1975 I think it was basically Westminster system of government um uh I think it's had eight or nine prime ministers in that time you know uh we often joke in Australia that Australia's had you know uh more Prime Ministers uh in in many more prime ministers in the same time frame”
Addison's Ferguson Island and Finny Island projects benefit from island location logistics: equipment delivered by large barge to beach without need for road transport through highlands; deposits within 10 minutes walk of beach; no need to cross multiple landowner boundaries for logistics corridor
“we're on our Islands so our Logistics is just literally a large barge turning up dropping its um its uh its bow door onto the beach and walking your equipment off and you start drilling the deposits are literally no more than 10 minutes away from the beach and you can start drilling so you don't have any of this complexity of you know the highlands where you've got a helicopter equipment in it's incredibly expensive you could um you've got to potentially um truck through treacherous roads it's it's so much easier and simpler and you don't have any complexity with um land owners on your Logistics supply line because it's over the water so there is no jurisdictional ownership”
Commercial traders in commodity futures markets are typically better informed than public speculators because they are involved in daily physical commodity transactions, so following their positioning provides better signal than retail sentiment
“the commercials they are now very light on short positions in the oil Market which means the professionals the ones that are involved in Daily oil transactions like oil companies they think the price is now relatively low and I'm not a particularly smart guy so I prefer to go along on the side of well-informed people and the commercial Traders are not usually usually I'm not saying in all case but usually better informed than say the public the small speculators”
Ferguson Island western side has huge geothermal potential; Addison has access rights or option to develop geothermal projects on Ferguson through relationship with Mayor Resources (larger shareholder); geothermal power development requires energy end-user
“the western side of Ferguson island has huge geothermal potential um it it sits outside our um tanaman areas but we do have a relationship through our um um through the larger shareholder of addon May resources um to have we have access rights or or an option to develop those geothermal um projects on Ferguson but of course there's no point developing a geothermal project unless you have a place where you can put that energy into”
Joseph Schumpeter's book 'Capitalism, Socialism and Democracy' describes how capitalistic systems lead to socialism because academics resent entrepreneurs who become rich without formal education, and because wealthy people prefer regulatory environments to protect their wealth.
“in it he has a speech he gave six months before he died which describes exactly how the capitalistic system leads to socialism largely because of the academics the academics they hate an entrepreneur who has no education and makes a million dollars in a month or a billion dollars you understand an academic they think these simple people who through hard work and innovation without any education shouldn't become this Rich”
To win local community support in PNG, Addison management personally conducts community awareness activities at villages; Crossley spent 5 days at Finny Island doing community awareness at 5 key villages and received unanimous support to continue activities
“I personally went to fenny Island for the first five days of Chris's uh um Chris uh um Expedition there...the main purpose for me going there was one to introduce him to the local landowners because they know me from previous visits and two I spent uh um uh well I did five awareness is at five of the key Villages and we got absolutely unanimous support to continue our activities”
GDP figures published by governments are meaningless because they depend entirely on which inflation rate is assumed, and the same governments publish both the GDP figures and the inflation statistics, creating a circular manipulation where identical economic data can show 3% growth or 1% growth depending on assumed inflation.
“the GDP figures that are published by governments are meaningless uh and I explain why they're meaningless depending on the rate of inflation you are assuming or calculating statistically you will get totally different the results so assuming someone says in the long run the US economy grows at 3% per Anum okay but if the inflation is 2% higher than what the government is publishing then there is not 3% growth but maybe only 1% or maybe in some sectors negative growth”
Addison Resources was listed on TSX Venture in February 2021, raised just under 11 million Canadian dollars, and initially drilled Ferguson Island then Finny Island but the stock price did not mirror exploration success and moved opposite, leading to previous MD departure and some board changes
“Adon was um listed on the tsxv in uh February 2021 uh we we we put an MD in um you know formed formed a comp created created the tenaments that that that made the company um at that time we raised um or the MD uh raised just under 11 million Canadian dollars um and that money was put to work straight away we we were drilling on Ferguson Island and when we concluded the Ferguson Island drill program we relocated to finey um however the stock price um did not mirror the expiration success in fact it went completely the other way”
Ferguson Island assets are under joint venture with East Vision Group, which has committed to spending $9.5 million (including $1 million cash payment split in two parts) to earn 50% stake contingent on funding feasibility and permitting to make project shovel-ready, with timeline expected to be 2-2.5 years from May 13, 2024 signing (before end of 2026)
“East Vision where uh East Vision has committed to spending almost $10 million to earn a 50% uh stake in those two assets if and this is an important if but if they can fund the feasibility and permitting of the project essentially meaning they can bring it to a shovel ready State this 10 million well it's actually specifically $9.5 million but this amount also includes a $1 million cash payment for Editon split in two parts and the expected timeline when they signed this contract was two to two and a half years and a signing happened on May 13 this year”
'Shovel-ready' status means project is fully consented, fully permitted, mining lease granted, environmental permit granted, all landowner consents in place, and ready to mobilize for infrastructure construction
“the shovel ready uh piece is really about having a project that is fully consented fully permitted and your mining lease is being granted your environmental permit is being granted all your landowner consents are in place and you are now ready to mobilize to start building the project the infrastructure”
East Vision Group is a strong Chinese group from Sichuan Province with demonstrated capability to execute large infrastructure projects, evidenced by constructing 50 megawatt run-of-river hydro project feeding PNG electricity grid
“they're a pretty big strong group um you know from Sichuan Province in China um um yeah very very very strong balance sheet um that's demonstrated by their their existing um commitment to to to PNG as an example they funded the edu Hydro uh scheme which is a hydro project 50 megaw um just outside of when I say just outside of Port mby it's about an hour's drive it's now feeding hydro electricity into the port mby grid that was a well in excess of hundred million Us doll Hydra project”
In PNG, all land is customary title held by local communities, not government leases, so mining companies must negotiate directly with landowners rather than central government; this is a critical difference from other jurisdictions
“you've got to make sure you're on top of in any country but particularly in PNG you know all the land is customary titles still so uh it's not own by the government it's not a lease you have to be dealing with those land owners”
A reversal of the 150-year urbanization trend that took global population from 20% urban to 80-95% urban may be occurring and could be quite permanent for a long time, as rural areas become more attractive due to economic and quality-of-life factors.
“now we may have a reversal that could be quite permanent for a long time... for the last 150 years the Industrial Revolution meant that in year 1800 180 to 19 % of the Glo of population in the world they were employed in agriculture and they didn't live in cities but lived in the countryside then there was the flight to the cities the urbanization process where the world went from say 20% Urban population 80% rural population to 80 90 95% Urban population”
Buying things that nobody wants and avoiding optimism is the strategy for making big money in markets; buying what everyone else is buying means you will be a victim instead of a beneficiary.
“if you want to make big money you must buy things that nobody wants and optimism is the enemy of the rational investor”
In December 2021-January 2022, Crossley made strategic decision to put company into care and maintenance state during terrible junior mining market conditions with blood on the streets in TSX Venture sector, while he continued managing other operations
“we were at a period where the market was terrible um I sort of made the decision um and this is this is around about December January 2022 um you know market conditions were terrible for juniors um there was a lot of blood on the on on the streets uh across the tsxv junior sector um so we made a decision to just probably put put expenditure on paes uh put the company in in a sense into a care and maintenance State um which we did um I was actually very busy also in our ASX listed company”
In 1990-1991, the speaker discovered that the Russian stock market was colossal undervalued and formed one of the first or second Russian mutual fund with friends, which had super performance for 10 years before being sold in late 1990s
“in 1990 1991 a friend of mine he alerted me to the Colossal undervaluation of the Russian stock market and so my friends and I we formed I think it was either the number one the first Russian fund or the second Russian fund and it had a super performance for 10 years I was a part but then I sold it in late 1990s”
Tim Crossley has been in the mining industry since 1996, working for BHP as a project director on the South Walker Creek coal mine (Greenfield to 4 million ton/year project), then CEO of the project, then manganese operations, then iron ore division, then set up Roy Hill project for Gina Rinehart, then worked in coal before starting entrepreneurial mining ventures
“been in the mining industry since about 1996 um I actually um joined BHP uh in the coal fields...was uh um you know fortunate enough to to be promoted uh quite quickly to a to a new Greenfield project...South Walker Creek mine...took that project from a literally a a green a Greenfield...through to a 4 million ton a year coal project um and uh I was...then became the the project um you know the CEO of of that uh business...moved to the manganese business...then moved to the or Division...moved on from BHP to then work um after running the inor division to set up uh Roy Hill the Roy Hill project for Gina Reinhardt”
Tim Crossley is the third or fourth largest shareholder in Addison Resources and has continued buying shares as a heavily invested operator-investor, not just taking a CEO salary; he bought shares at penny stock prices when no one else wanted them
“I'm probably the third or fourth largest shareholder in addon I've absolutely believed in it when the stock was a penny stock and no one no one wanted to to know about us I was still buying shares and uh so I'm you don't look at me as just a CEO taking a salary you look at me as a as a you know a heavily invested um U operator investor”
Addison Resources management and board own approximately 30 million shares combined out of 206 million outstanding (about 15%), with Crossley holding just under 13 million shares (~5%), Chairman Olson holding about 12 million shares, and all other directors holding stock
“about 206 shares on issue I think I'm I'm across my my controlled entities I think I've got thir about just under 13 million shares um so about 5% um the Chairman's um very very heavily invested as well cson he's probably owns about 12 million shares so and the other directors all all own stock as well so I think in aggregate you know if you looked at the board um we would be holding um you know close to 30 million shares out of the 206”
Anthropological expert work is required to identify rightful landowners through landowner mapping with GPS, which is critical for demonstrating compensation agreements are in place when submitting mining lease application in PNG
“one of the key work streams there is to get uh an an anthropologist to actually uh um go to Ferguson and wollo and start mapping the land ownership uh the rightful and true land ownership that's important because when you submit your mining lease application in PNG you have to also demonstrate it that you've reached a compensation agreement with the rightful land owners um so to know who the rightful land owners are you need an expert and anthropological expert to identify and they will literally walk with the land owners along their boundaries with a GPS and create a land ownership map”
19th century United States and Canada brought unprecedented prosperity to lower and middle classes despite being called the 'Robber Baron' era, as evidenced by massive immigration, and the popular socialist critique of that period is misleading.
“in the 19th century when the Socialist nowadays they all called it the the Robert Baron days... the 19th century in Canada and in the US brought unprecedented prosperity to the lower classes and to middle classes otherwise please explain to me why so many people mve from Europe and other countries in the 19th century to America”
Mining stocks in Canada relative to gold and silver bullion prices are extremely undervalued, but they are performing poorly as a group with no upside momentum and heavy downside when precious metal prices drop slightly, making them unfavorable despite relative valuation.
“mining stocks relative to the S&P and relative to the bullion price are extremely low that I agree but I don't know my sense is that and the own mining stocks so I'm not I'm essentially speaking against myself but I find that mining stocks are acting horribly horrible as you know a group of stocks in the market they don't really get a a lot of momentum on the upside yet and when uh the gold price and silver price drop a little bit they are hit hard”
Addison will need to raise approximately 4 million USD to execute the planned Finny drill program, requiring additional financing before drilling begins
“how much is all that work going to cost uh this is where you tell me what a meter of drilling typically cost cost to you PNG um look we'd be we'd be looking at um a drill program that's going to sort of probably cost around 4 million Us in that order...yeah we'll need to do um um a financing to to to be able to execute that drill program”
Addison hired Dr. Chris Bowen (COO/Chief Geologist) who worked for Robert Friedland; Bowen led geologist team on Phi Island for one month reassessing opportunity; company is progressing Ferguson work with JV partner in parallel.
“I've just had um you know we've hired a a chief geologist or coo Dr Chris Bowen um you know worked in Robert friedland's company for a long time um you know fantastic geologist he's just led a team of geologists on feny island they've been on the island for a month um you know reassessing the opportunity and in parallel we're progressing our work with our JV partner on Ferguson”
Social Security and unemployment benefits programs that began after the Great Depression fundamentally changed the economic relationship between individuals and state, and the expansion of these programs after the 1960s Great Society coincided with federal spending growth that crowded out private economic growth.
“after uh essentially the Great Depression these programs came up and where as the US had never spent on the federal government uh or the federal government had never spent more than say 89% of GDP by 1910 it started to to grow and it accelerated after the Depression and especially under the bread and the butter and gun policy of uh Johnson in the 60s”
Governments will continue to print money to create the illusion of growth when real growth doesn't exist, using fiscal deficits financed by central bank money creation to transfer wealth to households and subsidize industries, allowing politicians to appear successful while masking economic stagnation.
“if there's no growth uh the governments will continue to print money to make it look like grow because you know you can just uh essentially create fiscal deficits in other words the government has a deficit they spend more then they get into the kit every year that is then financed by the central bank that issues money to purchase the bonds that the government is issuing”
Government lockdowns during COVID that prevented people from traveling unless vaccinated represented unprecedented government interference with personal freedom, establishing that governments can now impose coercive medical interventions with ease.
“the government two years ago they locked up people families in their homes and made it very difficult to travel unless you had the vaccine so the government can come to you and say look either you take this injection that makes you mad or incapacitates you or maybe they will go further”
The expansion of government intervention into the economy since the Great Depression has grown like a cancer, and as government has expanded, economic growth has shrunk; entrepreneurs identify government regulation and incompetent officials as their greatest threat.
“as the government has expanded like a cancer and as a result of that economic growth has shrunk you can ask any entrepreneur in America or small companies and so forth small businessmen what is the greatest threat to their business they will all say government regulation and officials”
The stock market is a mechanism that transfers money from people with no knowledge to big boys like Wall Street, and the SEC formed in the 1930s was sold to the public as protecting small investors but actually protects wealthy people against lawsuits.
“the stock market is a is a is a mechanism that transfers money from people that have no knowledge to the big boys... the SEC in America was formed in the 1930s I think 1932 or 1933 they sold it to the public as an agency that would protect the small investor that is the greatest lie that has ever been uh broadcasted the SEC is an institution that protects wealthy people Wall Street against the public against lawsuits”
A large portion of the Finny resource area is buried by volcanic cover (tefra) that varies from 0-100 meters depth, so shallow drill holes that didn't push through the cover hit barren ground instead of mineralization, explaining why historical drilling appeared unsuccessful
“a large part of uh where the resource is and and the mineralizing event that that that created that resource is now buried because after the the the mineralization event you know millions of years ago there was a volcano subsequent volcano which then buried um that land form um uh and it the depth of cover varies from zero up to probably 70 to 100 meters so any shallow holes that didn't push through that um tefra cover were never going to hit mineralized ground anyway um so it was It was kind of wasted money”
The Lihir volcanic arc island chain contains multiple tier-one gold/copper projects: Simberi mine (8 million oz), Lihir mine (~80 million oz recorded by MRA), Finny (question mark), and Bougainville Panguna (giant), representing one of world's greatest discovery regions for large-scale gold and copper
“if you look at that island chain in the Le volcanic Arc you've got simir mine 8 million ounce deposit next Island south east of simir is Le here the MRA website records it as an 80 million ounce deposit next Island down is fenny question mark next Island down is banville and the great giant panguna mine so so we are certainly in one of the most um one of the greatest discovery regions of the world for large scale gold and copper projects”
By December 2023-January 2024, Crossley freed himself from other commitments, saw improving gold prices and market conditions, and decided to re-energize Addison by visiting Toronto to speak with brokers who liked the company's asset package, leading to a small capital raise at 3 cents and agreement of Ferguson Island joint venture
“when I was able to free myself out of that uh after we'd hired a team sort of pick up on one of our key projects it freed me up to really um start to focus on additon and that was around about December last year January I uh I had a look at the market conditions I saw the gold price starting to move and I thought that this was a really good time to probably re-energize Addison um...around about March of this year I went to Toronto we we spoke to some Brokers and and some groups over there they really liked the package we agreed to do a small Capital Rise um at at three cents which we executed just a small one and a half million soon after that we concluded the jv on the Ferguson assets with the Chinese which you mentioned in the introduction and uh they paid their half million commitment fee”
Previous explorers at Finny Island were so focused on finding ultra-shallow epithermal gold deposits that they never analyzed drill core for copper, and in some cases used air core drilling instead of core drilling, representing poorly thought out and wasted exploration spending
“he said look we were just so fixated on on finding the NEX here and and and I was uh you know money was tight um and I you know in a sense we were trying to save some some uh analytical costs but the early explorers was so fixated on and sort of trying to find this really Ultra shallow epithermal deposit um that they didn't even analyze uh for copper and in many cases did a lot of the drill Co holes were air core I mean it was a in a way a lot of it was there was a lot of wasted money ill ill thought out and wasted money”
Finny Island has an existing inferred resource estimate (as of October 2022) of approximately 1.5 million ounces of gold at average 75 grams per ton with 0.5 grams per ton copper credit, based primarily on historic drilling that focused on gold but was too shallow (typically less than 150m) to test copper potential
“there is already an existing resource estimate on it which as of October of 2022 shows almost 1 a. half million ounces of inferred gold at an average of 75 gram per ton and a could have grade of 0.5 grams per ton gold that resource that is mostly based on historic drilling which Focus predominantly on gold but the company believes there's couer potential here as well”
Geothermal energy cost is likely very competitive compared to diesel or heavy fuel oil power sources when geothermal source is located beside mining operation
“you know you've got to Crunch all the numbers um but I think if you've got a geothermal Source uh right beside you it's going to be very very competitive to any other energy source um you know if if you're looking at bringing diesel in or heavy fuel oil um I think the geothermal is going to prove uh very very compatitive”
Ferguson Island metallurgical testing achieved 87% gold recovery and 23 gram per ton concentrate grade; Addison believes optimization work can push concentrate grade to 30 grams per ton while maintaining 87% recovery
“are similar to what some historical work had been um had showed so look I'm not sure that we're likely to get higher um than 87% but what I think was very sub optimized was the grade the grade we achieved right we just ran out of samples to continue to optimize the process so we achieved about a 20 23 gram a ton concentrate grade um that's where we'd be looking to really look to optimize we'd want to push that up to as close to 30 grams a ton um concentrate great um and if we can do that and still achieve that 87% recovery we'd be very happy”
Real economic indicators show that since 2018-2019, the world economy in real terms has not grown but has actually remained below 2018-2019 levels, and when growth is measured as an increase in the standard of living of the typical household, there has been no growth globally with possibly one or two exceptions like India, as cost of living increases have exceeded salary gains.
“my view would be that since 2018 2019 in real terms the economy in the world has not grown but actually still somewhat below the level of 2018 2019 and if we consider growth as being an increase in the standard of living of the typical household in the world then there has been no growth the typical standard of living of individuals in the world has been going down with maybe one exception or two exceptions like India but in general uh the cost of living increases in the world of households has exceeded their salary gains or their earnings”
Oil is inexpensively priced at current levels and the world is underestimating future demand for crude oil, making crude oil a favorable long position relative to short.
“I think that oil is inexpensive at this level and I think that uh the world is underestimating the future demand for crude oil so I would be rather long crude oil than short”
The S&P 500 and especially the NASDAQ and the Magnificent Seven technology stocks are grossly overpriced and grossly over-owned, with every trader in the world long these stocks, making them dangerous to own despite the risk of shorting in a money-printing environment.
“the SNP I would be uh in a money printing environment it's dangerous to short stocks but in general the SNP and especially the NASDAQ and specific Al The Magnificent Seven in my view are grossly overpriced grossly overpriced and they're also grossly over owned in other words every Tom Dick and Harry in the world who is a Trader is long Nidia yes and the other Fang and fun related stocks”
Paper currencies will continue to depreciate in value while currencies that cannot be printed, such as precious metals, will appreciate relative to printable currencies over a 40-year period.
“I think uh the paper currencies will continue to depreciate in value and uh the currencies which cannot be printed uh such as precious metals they will appreciate relative to the currencies that can be printed but I've been saying that for the last 40 years is nothing new”
Historical cities like Petra, Venice, Babylon, and Rome were once economically and politically important but are now meaningless economically and politically, suggesting that current financial centers like New York and London may similarly decline in future economic importance.
“if you travel the world and you open your eyes instead of watching your a mobile phone all the time you may may notice cities like Petra and Venice and Babylon and anyway and uh Rome and so for and and Venice and that the cities that were important and today they are meaningless economically speaking and politically speaking in the world meaningless now once you know that you can deduce that maybe there are some cities that are Financial Centers today like New York or London or what not that are one day not going to be doing very well”
Individuals with information that governments are lying should take personal responsibility for interpreting economic information themselves and acting on it, rather than relying on government guidance on whether to buy stocks or bonds.
“you have the information you know the government is lying and then you take your responsibility and you act upon it now it's not my job to tell you how you should act but my job is to do what I what I should do”
Incompetent government officials who are interventionist are worse economists than incompetent officials who do nothing, because non-interference with the economy is better than active interference with wrong measures.
“if you're incompetent and you don't do anything you're actually a good Economist because you don't interfere into the economy but the worst is to be incompetent and take the wrong fiscal and other measures into the economic process”
Addison has already conducted staff roadshows (Ontario Conference), board member presentations in Europe (July), and plans to be active in marketing including attending Beaver Creek conference; company is re-engaging after two-year dormant period.
“we I did the um Ontario conference uh um the other day um we had um one of our board members um present to some lunches in in Europe over over um I guess that was July um yeah so we we'll be at we'll be back active marketing we've already started some some um sort of uh internet um uh marketing as well um you know intend I intend to go to Beaver Creek conference”
In a money printing environment, central banks create inflation that benefits asset prices including commodities, but a weak economy creates headwinds for commodity demand, and these opposing forces make it difficult to determine which will prevail in the case of copper and other industrial metals.
“in a money printing environment uh the central banks print money... the money printing lifts assets including Commodities and gold and silver but a weak economy is a headwind for the demand of Commodities so if China is in recession and doesn't recover the demand side for Copper is isn't going to is not going to be very good so I want to to explain you have two heads and Tailwinds they're coming against each other and it's difficult to determine which will prevail”
Real-world statistics that cannot be easily faked—such as car sales, consumption patterns observed in shops, corporate announcements about consumer spending, traffic at stations and airports, and traffic in duty-free shops—are better indicators of actual economic health than government-reported GDP figures.
“if we look at statistics that are not uh cannot be faked a lot or cannot be massaged a lot but real statistics say car sales and uh consumption of individuals in a shop and uh the announcement by the corporate sector about the spending habits of people and so forth and so on and you have to go out of your room and maybe observe a little bit instead of watching the telephone all the time maybe observe the traffic at the station or the traffic at airports or the traffic in dutyfree shop”
When people are financially squeezed, they will sell assets they hold without social consequences or loss of income: in wealthy countries, precious metals and jewelry; in poor countries, gold is commonly held by families and will be sold when commodity prices rise and the economy is down, creating supply that caps gold prices despite money printing.
“when people are squeezed financially they have to sell something usually they will not sell their homes because they live in their homes and it would lead to a loss of income and so that they'll keep it's also a loss of facei... in poor country a lot of people in a country like Vietnam every family has some gold so in poor countries when the price of Commodities goes up and the economy goes down they sell the gold that's why in my view the gold should be higher at the present time based on money printing but it's not because there's a lot of sellers in the gold market”
In ineffectively organized societies like Thailand, governments can shut down most economic activity but cannot control corruption (nightclubs owned by police operate during lockdowns), creating opportunities for those who understand this structural reality.
“in a badly organized Society like Thailand they can close down everything but they can't close down the nightclubs that are owned by the police force”
Wealthy people support socialists because they believe they can manipulate them, but socialists are actually very dangerous in every society because they threaten expropriation of property.
“I want to say this if the governments could do that they can come to you and to me and say your property well we take it away this should belong to the government your gold we take it away should belong to the government they can do anything they want that's why I'm very disappointed by wealthy people who have power they support the Socialist because they know they can manipulate them but the Socialist are very dangerous in every society”
Faber was among the first investors to invest in emerging markets in the 1970s and 1980s (Taiwan, South Korea, Philippines, Indonesia, Thailand) when nobody else would, then invested in Latin America in 1986-87 when he discovered cheap valuations from high inflation, demonstrating non-bearish track record.
“I was one of the first one to invest in emerging markets in the 1970s 1980s in Taiwan in South Korea in the Philippines in Indonesia in Thailand where nobody else would invest in these countries and then in 86 87 I went to Latin America because I had discovered that in Latin America because of high inflation the valuations were third cheap”
Most European countries now spend 60% of their budget on government, and this massive government expansion is more concerning than private sector challenges.
“now most European countries 60% of the budget is essentially government”
Gold and silver hold no income or cash flow benefits, so investors must measure their required allocation individually based on personal wealth situation and risk tolerance, not as universal recommendations.
“I have a lot of gold and silver but I'm fully aware that gold and silver doesn't give me an income I have no income I have no cash flow from holding gold and silver so each individual has to decide how much does he want to have in gold and silver”
As a contrarian investor, Faber would buy other stocks not owned by the majority and be light on US stocks rather than buying the Magnificent Seven that everyone else is buying.
“as a contrarian I would buy other stock stocks and not these Magnificent Seven stocks and I would uh essentially be light on the US Stock Mark”
Thailand has characteristics that papers describe as those of a 'failed state,' yet it hosts one of the largest retiree populations in the world from developed countries, suggesting the definition of 'failed state' may be wrong or incomplete.
“Thailand had all the characteristics of being a failed State I love that because the funny thing is Thailand has one of the largest retiree populations in the world you know people from all over the world they come and retire in Thailand Now isn't it funny that people from the Western World from all over Europe and from the US and Canada and Australia and wherever they come and retire in a country that is a failed State maybe the definition of failed state is wrong”
People should switch off mainstream media (CNBC, major newspapers) because they publish government-approved information that does not correspond to economic or political reality.
“I would switch off CNBC and all these media outlets and the major newspapers because what they're publishing is what the government is telling them and most of the the Articles and the media reports are are completely wrong they're not uh corresponding to to the economic reality nor the political reality”
Critics who say the speaker has been perpetually bearish cannot be trusted because they don't read his newsletter, which they can't afford; this is characteristic of the financial industry where competitors speak poorly of each other
“for someone to say he's been bearish all the time first of all these people don't read my newsletter because they can't afford them and a car characterist of every industry a doctor will never speak highly of another doctor who is a competitor and in the financial sector people speak badly of each other”
Faber was bullish on commodities in 1999-2000 and is an example of an asset class that performed significantly better than gold over a 20-year period with relatively low risk, which investors never look at when criticizing him for being bearish on stocks.
“I gave me an asset class that in the last 20 years did significantly better than gold with relatively low risk and then people never look they say Mark has been bearish about stocks... who was bullish about Commodities in 99 2000”
On March 6, 2009, when the S&P 500 was at 666, Faber said the market was bottoming because it was very oversold, contrary to other bear analysts who predicted the S&P would fall to 400.
“who was interviewed on March 6 2009 S&P 666 I said the market is bottoming out today because it was very oversold and all the others you know the super Bears I don't want to mention the names here but you can look it up they said the S&P when it was at 666 will go to 400”
Based on government competence in modern Western nations, the speaker cannot be optimistic about economic prospects, though money printing may temporarily support stock prices in nominal terms even if not in real terms
“based on the governs we have now in the Western World I I really can't be optimistic but they may print money and stocks may go up but they may not go up in real terms”
Uranium demand will increase due to US military interventionism and global conflict, and nuclear energy will become more prominent as governments move away from coal and natural gas, but this does not guarantee uranium prices will rise proportionally.
“the fundamentals of UR of uranium with the American States Department in power who wants a war everywhere in the world whenever they see a nail they have to bring a big hammer and hit it down so we start in mind the demand for Uranium will go up then we have that really dumped down Green Communists in Germany and other countries they talk about climate change but themselves have no clue about what causes climate change... the point is this all these clowns will be out of government in a little while... they have decided to essentially commit economic suicide... all this results for in uranium more demand for nuclear higher uranium prices”
Real estate in big financial centers is not particularly attractive, while real estate in Asia is probably more attractive than in the United States and Europe, particularly in small villages in Europe where prices remain cheap.
“real estate in big Financial Centers is not particularly attractive... real estate in Asia is probably more attractive than in the United States and Europe... in small villages in Europe real estate is cheap”
Addison Resources reduced tenement portfolio to focus on Phi Island and Ferguson Island based on geological merit and development potential; eliminated early-stage properties to concentrate capital on highest-potential assets.
“you know if you looked at the tenaments three or four years ago I took the decision to really focus on where we saw the greatest potential uh where where where we were really excited about the geology and um and um and that's why we We've Ended up with with fenny and uh and the Ferguson assets”
Faber's 10-year performance on the Barents Round Table panel was the best among all panel members including other named successful investors like Bill Gross, though he does not claim this performance can be replicated in the next 10 years.
“I was on the panel of barents for more than 10 years... someone then compiled the statistics who had the best performance of all the panelists uh to answer this criticism in all modesty I have to say I had the best performance and the second best was a friend of mine Felix suau and we had the best performance by Miles”
The host mentions Faber's 40-year history of predicting gold and silver appreciation, explicitly establishing his long track record of these views.
“I've been saying that for the last 40 years is nothing new”
Each time Faber has gone to a country where he couldn't see economic improvement, the stock market has gone up like a rocket afterwards, suggesting contrarian buying opportunity and that pessimism creates market opportunity.
“I even I can't see from where an economic Improvement could take place but I have to admit that's what I wrote that each time I went to a country where even I couldn't see from where an improvement could take place the stock market right away went up like a rocket”
Platinum is the only precious metal that remains very depressed in price relative to historical levels and long-term value.
“I'm also positive about Platinum the padium situation I don't know well enough and I don't use it but I also have a platinum is the only precious metals that is still very depressed”
Despite owning mining stocks, the speaker expects them to perform well in a real strong bull market eventually, but that event has not yet materialized and remains in the future
“I own some and I think uh in a real strong bull market they'll go up at some point but it just hasn't happened yet still waiting for it to happen”
Phi Island resource update (new mineral resource estimate) is targeted for Q2 mid-2025 (4-5 months after November drilling start); timeline depends on drill results.
“if we started Drilling in November um it's it's going to be a four four to five month program I think you'd be looking at a a mineral resource estimate sort of um um Q Q2 mid mid to late Q2 next G”
Phi Island is not a classical Lihir epithermal deposit; Lihir shows only modest copper grades while Phi Island copper mineralization appears significant; company must understand what's driving copper system at Phi Island and whether copper is contiguous and continuous.
“fenny's a a really interesting Prospect for us um it's not a classical leer epithermal the current resource area probably is more classical leer epithermal but what's driving the copper in the system is is is what we really need to understand and how contiguous and continuous is that copper because right now um our resource reported without any any um uh um credits for copper um at all”
One quality of politicians is that the moment they become politicians they become liars who lie about everything, so there is no logical reason to believe government-published statistics are truthful when governments lie about everything else.
“I personally think that one of the qualities of of Virtues Of politicians is that the moment they become politicians they're becoming Liars they lie about everything so the why would they lie about everything but not about statistics that they publish give me one good argument”
Bearok and Kamala Harris represent incompetent government leadership because they have never worked a day in their lives and therefore have no understanding of how to run a business or government.
“incompetent people like bearok and like camela Harris have no clue they never worked a day in their lives how do would they know how to run business I ask myself how do they know how to run a government”
The entire electric car business is a complete farce and joke; Faber would never buy an electric car and views the CO2-climate change relationship as unproven, citing that prosperous nature existed in warmer climates.
“I think this whole electric car business is a complete farce is a complete joke I would never buy an electric car... someone will say to me yeah you want of these people who create uh CO2 emissions and so forth to this I respond yeah maybe but please prove to me that because of CO2 the climate goes up please prove it to me so we don't know a a very prosperous time for nature was when the climate was much warmer”
Germany's government is operating according to a 'how to fail massively in 10 easy steps' framework, having committed economic suicide through incompetent interventionist policies that are destroying the country from within rather than from external enemies.
“the country is not destroyed by an enemy the country destroys from within they have decided to essentially commit economic suicide that's why they have the German government consisting of Schultz bebok HCK and more people who are completely incompetent but are interventionist”
Canadian financial markets function reasonably well, but Canada as a country is broken due to having the most idiotic government imaginable, with policies that half or three-quarters of Canadians inexplicably seem to support.
“I think the financial markets are functioning reasonably well you should ask is Canada broken because we have the most idiotic government anyone could dream of... someone like trudo as a prime minister it's a complete disaster but half or three quarters of the Canadians they seem to like it”
The Consumer Protection Agency formed by government is a complete joke that protects big companies against consumers rather than protecting consumers.
“they formed the Consumer Protection Agency it's a complete joke it doesn't protect the consumer it protects big companies against the consumer”