Is the capitulation over? Rick Rule warned early this year that the PM markets faced capitulation, and that he expected capitulation to be completed by the end of October.
With October drawing to a close, is the bottom in?
Ever wonder WHY Rick Rule and Eric Sprott own gold and silver??
Russia, China and the U.S. are in a battle for currency dominance and natural resource stocks have been buffeted as a result. When the dust settles, smart natural resource investors could be the big winners as long as they have taken the right protective measures. In this interview with The Gold Report, Sprott USA Holdings CEO Rick Rule and Stansberry & Associates Investment Research founder Porter Stansberry—the men behind the upcoming Sprott-Stansberry Vancouver Natural Resource Symposium—share their strategies for picking good companies no matter what happens on the political front.
Sprott’s Rick Rule joins The Doc & Eric Dubin this week for a special show discussing:
- Why Rick believes the Bear market appears to be over in junior mining equities: We are now in the early stages of recovery– We have all of the hallmarks of a market that wants to go higher!
- Rule explains why Markets Work: The cure for low prices is low prices!
- One Final Gift From Mr. Market to Mr. Rule? Rick discusses the potential for a historic opportunity to invest in the oil resource sector come Q4
- Does China Believe it is Game On For Resource Materials Acquisition? Rule Provides Anecdotal Evidence Why the Answer is Yes!
- Rick explains why In the circumstance of a liquidity driven market collapse, you don’t want to own an indirect proxy for gold (shares), you want to own gold– Selling will be driven by the margin clerk, not the client
- Finally, The Doc asks Rick to discuss the proposed tender for the assets in Sprott’s Central Gold & Silver trusts
The SD Weekly Metals & Markets With The Doc, Eric Dubin, & Sprott’s Rick Rule is below:
Sprott’s Rick Rule took at a stance in January that went against many investors’ contrarian instincts.
He said to stay away from oil and gas for the time being.
However, Rick has been discussing oil and gas drilling lately in internal broker meetings, as well as conferences.
Does he now think there’s an opportunity in oil and gas?
As Rick Rule puts it, “There are over 2,000 junior exploration companies around the world and most of them are destined to fail for geological reasons alone. The idea of investing passively in a basket of small and micro-cap companies and weighting them based on their size is problematic in the gold sector.”
Rick said this is why this new ETF is so significant.
Until now, there hasn’t been a way to own a junior gold mining ETF that favors some companies over others based on qualitative factors. “I want to own companies based on their track record of creating value, not on how big they are.”
With blood running in the streets for gold & silver miners, Eric Sprott, Rick Rule, and Keith Neumeyer just demonstrated once again why they manage BILLIONS in assets…
Over the last few years, gold has simply been losing the war against the US dollar, says Rick Rule.
Now gold’s price is stabilizing, but Rick noted in his recent call that gold’s struggle against the US dollar is uphill, and that the dollar still has a strong upper hand:
“The dollar remains the predominant world currency, and I think it will remain so for many years to come. It’s just that over the last 12 months, gold has been losing less badly against the dollar.”
“A ‘perfect storm’ of global events is coming together soon” -Rick Rule
Legendary investor Rick Rule asks: Should we steer clear of the oil sector or look for ways to profit?
During a time in which sentiment towards natural resources is bordering on doom, Rick Rule, Chairman of Sprott U.S. Holdings was kind enough to share a few comments.
Speaking first toward the phenomenon of market capitulation Rick noted that, “Capitulation is a very dramatic event. It’s when most participants in the market give up completely and simultaneously. They are two or three week periods [of] extraordinary [share price] violence. They’re emotionally driven rather than arithmetically driven events.”
One of the more important utilities of a capitulation according to Rick, is that, “In my experience they have marked definitively the end of long bear markets.”
When asked for a prediction on the gold price, Rick concluded that, “[The fight] is between gold and the U.S. 10 yr. treasury—and I don’t see how over 5 years we can possibly lose that fight.”
Now is the time to re-examine our premises on gold.
Are the worst of times yet to come?
At the Cambridge House Canadian Investment Conference in June, The Gold Report Publisher Jason Mallin asked a panel of experts picking a portfolio of stocks with upside potential for the 2014 Streetwise Reports Natural Resources Watchlist what they wanted to see in an equity. As always, Sprott US Holdings Inc. CEO Rick Rule, summed up the ideal beautifully. “We like reality at a discount,” he said. Now that three months have passed, we decided to check in with Rick and co-panelists Joe Mazumdar from Canaccord Genuity and Keith Schaefer from Oil & Gas Investments Bulletin to see how that reality is playing out.
“The market itself is very healthy. You are seeing a transition…a transition that doesn’t suggest, but rather screams that [junior resource issues are] under accumulation—which is a very, very bullish sign.”