EDITOR NOTE: Commodities investment legend Rick Rule joined ABC Bullion to discuss all things gold, silver, and precious metals. Rule talked about the recent “flash crash” in the gold market and noted that it didn’t worry him at all as a long-term investor. He also said that while gold did lose 8% in four minutes, no one is talking about the fact it easily recovered all that within 10 days. He also said he fully expects that major bull markets for gold and silver are only “a year or so away.” Rule summed up his overarching theory on gold saying “gold does well when investors are concerned about the ongoing purchasing power of their savings in conventional savings instruments in their home currency. And if, in the current environment, with quantitative easing, debt and deficits, and negative real interest rates you aren’t concerned about the purchasing power of your savings, you probably need to consign yourself to poverty over time.”
If precious metals only return to their mean with the historical average, demand for gold will skyrocket, particularly in Australia. Rick Rule, in a discussion with Shae Russell, Group Communications Manager for ABC Bullion. As gold struggles to hold above US$1,800 level, Shae Russell asks Rick Rule if the sentiment behind gold has changed? Not so says Rick, rather gold is yet to become a mainstream investment asset, and the demand for precious metals is set to soar.
Rick’s a well-known mining investor and former president and CEO of Sprott US Holdings. Rick began his career in the securities business in 1974 and has been principally involved in natural resource stock investments ever since. More recently, he just launched his own research arm, Rule Investment Media. He has financed numerous exploration and mining companies over his 45-year career. And right now, he believes a recovery in the gold price is imminent.
Original post from ABC Bullion