Rick Rule: Gold & Silver About to Go Much Higher
Tom welcomes back Rick Rule a man that needs no introduction. Rick discusses his newfound freedom outside of the securities regulations and Sprott. His focus is now on providing value wherever he feels so inclined. He has been able to build up a large community network and can now communicate in a detailed personal way.
Too many speculators don’t ask the hard ‘when’ questions. Finding sectors that are out of favor or even hated means that as an investor you will have few competitors. It’s important to be brave when others are afraid. Find a commodity that is necessary for humanity where prices are lower than the cost of production. That commodity must rise over time or it will become unavailable.
He discusses the opportunities the oil industry presented during 2020. It was fairly obvious that the price would have to recover. Rick remains very bullish on the oil sector as net present values are excellent. We’re now seeing a similar pattern with uranium and with Japanese Reactors set to resume this year it will only get more attractive.
There is no way your savings can keep up with current inflation as negative interest rates are guaranteed. Quantitative Easing is just a different term for counterfeiting. Mathematically government debts can never be repaid they can only be rolled over. People should be concerned about their loss of purchasing power.
Over the last four decades, precious metals have comprised only one to two percent of total savings. Today they are at half of one percent. Rick is very bullish across the commodity space but cautions that commodities require patience.
Rick cautions that a worldwide recession or depression could upset the commodity apple cart. If we encountered a massive loss of confidence this would derail his thesis.
Crypto and precious metals are competing on the investment fringe. The combined market cap of cryptos and precious metals at ten trillion remains tiny compared to the 650 trillion in global markets. When institutions pile out of bonds and into tangible assets will cause the recent silver squeeze to look silly in comparison. If the friction involved in buying precious metals is eliminated that could have profound effects.
Rick discusses being astonished at how quickly the Sprott Uranium Trust was able to raise capital. Rick feels the price is heading from $45 to $70 over the next three years.
The copper industry isn’t seeing little capital investment and therefore the outlook for its price is healthy. However, he currently prefers oil and gas because they are cheaper.
Talking Points From This Episode
- Educating others in a personal way.
- Commodities and asking the correct questions.
- Uranium pullback should be seen as an opportunity.
- Why the metals could greatly benefit from crypto.
Time Stamp References:
0:00 – Introduction
0:41 – Rule Investment Media
3:28 – Regulations and Advice
5:57 – Higher Quality Thinking
11:19 – Notable Asset Classes
20:50 – Bullishness & Stupidity
23:12 – Scary Economic Cycles
26:33 – Crypto and the Metals
31:27 – Sprott Uranium Trust
37:30 – Uranium Projects
42:35 – Other Opportunities
48:42 – Farm Land & Prices
50:28 – Rick’s Offer & Wrap Up
Rick Rule has dedicated his entire adult life to many aspects of natural resources securities investing. Besides the knowledge and experience gained in a long and focused career, he has a global network of contacts in the natural resources and finance sectors.
Mr. Rule is a frequent speaker at industry conferences and is regularly interviewed for radio, television, print, and online media outlets concerning natural resources investment and industry topics. Prominent natural resources-oriented newsletters and advisories frequently quote him. Mr. Rule and his team have expertise in many resource sectors, including agriculture, alternative energy, forestry, oil and gas, mining, and water.
Mr. Rule is particularly active in private placement markets, having originated in hundreds of debt and equity transactions with private, pre-public, and public companies.