Rick Rule: Platinum, Palladium Supply Squeeze Will Turn Ugly

2014 Platinum EagleStrikes at South African mines have caused a massive drop in platinum and palladium production. And the world’s palladium supply could decline by 41% overnight if the West imposes export sanctions on Russia.  Speculators are betting that these events will reduce supply of the metals and drive up prices.
Rick Rule, Chairman and Founder of Sprott Global Resource Investments Ltd., recently weighed in.  He believes platinum and palladium could go lower in the near-term, as fears of a sudden crunch dissipate.
The real reason platinum and palladium should rise over the coming years has nothing to do with geopolitics or labor issues, Rule believes. 

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Rick Rule on How to Spot Miners That Have Pots of Gold at the End of the Rainbow

gold rainbow potThoughts turn to green on St. Patrick’s Day. Rick Rule of Sprott US Holdings believes the resources bull market is about 18 months from arriving and there could be multiple promising entry points in the market this summer. But in this interview with The Gold Report, he says that this rebound may not look like the one investors are expecting and shares tips on how to spot companies that may have pots of gold at the end of the rainbow. [Read more...]

Rick Rule: A Mere $2 Billion in Cash Would Make Silver Short Positions UNCOVERABLE!

dollar collapse panicRick Rule from Sprott Global Resource Investments joins the SGTReport to talk about everything precious metals. This is a must-listen interview packed with lots of bullish info, but towards the end of the interview Rick really cuts to the chase: “The idea that silver can be manipulated down ignores the fact that it could easily be manipulated UP.”
Rick continues, “The consequence of two years of extraordinary physical demand in the face of the unwinding of the leveraged long carry trade in silver expressed in SLV and expressed in the futures markets, tell me that it will be easier to make money manipulating the price of silver UP than manipulating the price of silver down.  And my suspicion is that the commercial interests in manipulation will ultimately do the easiest thing to do. If there was $2 Billion employed, not on margin by the way, cash – so the rules could not be changed like they were on the Hunts – $2 Billion in cash employed in the futures markets, which was held for delivery cleaning OUT the good delivery silver that’s available, the short interest would LITERALLY be uncoverable.” [Read more...]

Rick Rule: U.S. Debt Out of Control, “Gold is Catastrophe Insurance”

debt ceilingIn this interview with Finance & Liberty, Sprott’s Rick Rule discusses the coming recovery in the precious metals sector, as well as his view on whether a fiat currency and sovereign debt collapse is dead ahead.
Rick Rule’s full interview is below:
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Rick Rule: “Every Billionaire I Know Took Bets Contrary To Conventional Wisdom At The Time That Were Highly Risky”

Eric Sprott is making a bet that we’ve reached the capitulation point in precious metals and that the precious metals will pivot sharply higher in the next 12 to 18 months.  He rightly points out that by putting sort of $50 million into this bet…he might lose 50% of $50 million or $25 million…or if he is right about the timing of the move in precious metals and the quantum of the move of precious metals, he could easily turn that $50 million into $500 million. A bet where you have one chance of losing half your money and another chance of making 10 times your money to the extent that you can afford to make that bet—that’s how you build businesses like Sprott.
I’ve had the good fortune in my life to know 12, 15, 20 self-made billionaires and what segregates the billionaires, what segregates the people who get that last digit—is guts. You have to take risks…Every billionaire I know has been willing to take bets that were contrary to conventional wisdom at the time that were highly risky. You have to see a situation that you think has outsized possibility of reward and you have to really, really, really swing for the fence.” [Read more...]

Rick Rule: Eric Sprott Believes His Portfolio Will See 15 to 20 Baggers in the Next 12 Months

Rick Rule:  Eric Sprottis as aggressive as I have seen him since the year 2000…he is as is his style, the style that has made him a billionaire, very aggressively going into the marginal junior producers…companies that barely make money at $1400, but would be making $800 or $900 an ounce if the gold price went higher….
Eric believes that gold within 12 months will certainly be above $2000…[and] that this is the year where his portfolio will see ten to fifteen–10 to 20 baggers.[Read more...]

“Rick Rule: Leveraged Gold Longs Are Heading To The Sidelines–In Fear Of An October Financial Panic”

Commenting on the elements that suggest a coming October black swan surprise, Rick Rule said, If ever there was a set of circumstances that came together that would give an asynchronous event the ability to take the financial system off the rails again, it would be this month…the dysfunction of the US congress with regards to the spending authorizations and the upcoming problem with regards to the debt ceiling, and the fact that those occur…[during] a psychologically important month raises the specter in everybody’s mind…of a black swan event that takes down all markets and drives everybody to respect liquidity.”
In terms of how he’s preparing for such a panic event, Rick said, For the balance of this month, I am in cash, cash, cash, and cash.
Is an October financial panic dead ahead?  Rick Rule’s full thoughts are below:
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An Investing Opportunity of a Lifetime: Lessons from the Sprott Precious Metals Roundtable

Sprott

What happens when you bring together four of the top minds in the precious metals investing space to share insights from the front lines of gold, silver platinum and palladium investing?
These excerpts from a Sprott Resources Roundtable featuring Gloom, Boom and Doom Report Publisher Marc Faber, Sprott Asset Management Chief Investment Strategist John Embry, Sprott Global Resource Investments Founder Rick Rule and Sprott Asset Management Founder Eric Sprott prove that great minds think big. [Read more...]

Rick Rule On Gold & Resources: “The Stage Is Set For An Absolutely Dramatic Recovery”

I had the opportunity this week to reconnect with legendary resource financier and investor, Rick Rule, Chairman of Sprott US Holdings.
It was a fascinating conversation as Rick spoke to the characteristics of market capitulations, of which set the stage, for absolutely dramatic recoveries”. Rick added that it’s the duty of honest investors to “reorganize their portfolio’s at the bottom”, to ensure they are exposed to the best names in the business, ahead of the inevitable recovery.
Those investors who are honest with themselves and reorganize their portfolios at the bottom, selling the worst of the companies, no matter how painful it might be, and redeploying the assets in strong but oversold companies—enjoy returns in the inevitable recovery that can be 250%, 350%, or 500%…If you think about the math, you give back 35% to 50% [on the downturn] and you make 250% to 500% on the upturn. Overall, that’s pretty good math.” [Read more...]

Rick Rule On Gold, Silver, & Miners: “We’re Now Seeing Capitulation By Institutional Investors”

Following this week’s stunning and repeated collapse in gold and mining equities, I had the chance to reconnect with legendary resource financier and investor, Rick Rule, Chairman of Sprott US Holdings.

Speaking toward what he’s seeing from the institutional investor community, Rick said, “This is the fourth time in my career that I’ve seen capitulation selling, and it get’s ugly and spasmodic…Last week I was on the East Coast of the United States visiting very large institutional investors, and the level of indecision I saw was absolutely classic of the period right before capitulation—and this week, right on schedule, we’re getting it. [It's] truly ugly, but it’s the kind of cleansing the market needs.”

“I was talking with Eric (Sprott) this morning on the phone, and what he reinforced to me was that he built Sprott from a $10
million manager to a  $10 billion manager, by the aggressive deployment of capital at times like these. 
Eric has always said, ‘Don’t be afraid to be right’. That’s where we are right now…This is the time when the ’A’ players go to war.” [Read more...]

Why Rick Rule Bought $280M of Platinum and Palladium

platinumWhen Rick Rule pairs lower grades, labor strife and inefficient mines with the relentless demand for platinum and palladium, his result is an investment thesis that could pay off for bullion and equity investors. In his Metals Report interview, the founder and chairman of Sprott Global Resource Investments Ltd. compares the current platinum and palladium space to the uranium sector 10 years ago, and predicts handsome returns for investors willing to shoulder the risk. [Read more...]

Sprott’s Rick Rule: Is it Time to Sell Gold & Silver and BUY Platinum & Palladium?

platinumWhile we remain more bullish on both silver and gold at SD as we believe the economic downturn will intensify as 2013 progresses, we do hold a minor portion of our assets in physical platinum and palladium as a way of having some diversification of physical assets.  Sprott’s Rick Rule makes the case for platinum and palladium amidst S. Africa’s mining crisis:

Sprott’s Rick Rule talks about a few 100 baggers of his own and whether he achieved such returns through his own skills or just dumb luck. We also discuss dealing with the tough times, the coming water crisis, and whether it’s time to sell gold & silver and start buying platinum and palladium. [Read more...]

Eric Sprott, John Embry, & Rick Rule Round Table Interview on Precious Metals Fundamentals

sprottIn this unique discussion, precious metals experts Eric Sprott, John Embry and Rick Rule discuss a wide range of topics related to precious metals investing including macro economic issues, expanding central bank balance sheets, and the role of precious metals in protecting your purchasing power. A detailed analysis of the gold, silver and platinum/palladium markets, and a Q&A session round out this great discussion.

For those who missed last week’s live round table discussion of precious metals with Eric Sprott, John Embry, & Rick Rule, the full MUST LISTEN discussion is below: [Read more...]

Sprott’s Rick Rule to CNBC: If You Think Your Wife’s Ring is Supply, Ask Her. You’ll Find Out it Isn’t!

large ringWhile Eric Sprott was speaking with The Doc this morning, Sprott’s Rick Rule was on CNBC discussing gold, silver, platinum, and palladium in the midst of the latest cartel raid on the metals.

While Rule’s entire interview is a MUST WATCH, the below clip was an absolutely classic response to CNBC’s claims that jewelry recycling will prove to bring massive supplies to the market:

In terms of gold and silver with supply, you have to think about historically mine supplies, but there are no substantial inventories of platinum and palladium. It has gone up a smokestack, it has gone out a tailpipe or been turned into jewelry. If you think your wife’s ring is supply, ask her. You’ll find out it isn’t

When asked which precious metal Rule would recommend owning he responded:  I would own the whole bullion suite.

Rule’s full interview is below: [Read more...]

Sprott: Platinum & Palladium’s Breakout Year

platinumAs most of our readers are aware, our friends at Sprott Asset Management recently launched physical platinum and palladium bullion trusts out of expectations that the metals will see substantial gains over the next decade over major supply issues.

With both platinum & palladium soaring over the past few weeks, Sprott has released a MUST READ summary of the platinum and palladium markets (Sprott compares both metals to the uranium market in 2003), and why they believe the physical metal will outperform the mining companies.

Despite being long-time precious metals enthusiasts and active investors in gold and silver, we did not focus on “the other precious metals”, platinum or palladium, until very recently. Our interest in the space was ignited by a client’s request to assess investment opportunities in the debt and equity of Platinum Group Metal (PGM) mining companies – an exercise that came up almost completely dry. As long-time resource equity investors, we are familiar with the mining industry’s supply/demand cyclicality and the impact it has on commodity prices. Looking more closely at the PGM miners, the platinum and palladium industry reminds us of the uranium industry back in 2003. Like uranium, platinum and palladium are crucial to a number of important industrial applications where demand for them is relatively inelastic to price. And like uranium in 2003, palladium is also marked by an opaque, but rapidly diminishing foreign supply stockpile, which had previously balanced out the market and effectively capped the price. [Read more...]