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Rick Rule - Gold, Silver, Takeovers & 2,000% Gains
With continued volatility in gold, silver and global stock markets, today King World News interviewed Rick Rule, Founder of Global Resource Investments and one of the most street smart pros in the resource sector. KWN reached out to Rick, who is currently in New Zealand, to find out what his thoughts were on how investors can make money in 2012. First, here is what Rule had to say about the action in gold and silver: “I continue to believe that when rational people are confronted with the choice between owning dollars or euros or owning gold, increasingly people are owning gold. I continue to believe the intermediate and longer-term move in the gold price is higher. I think the gold price, in US dollar terms, moves inexorably higher.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
January 31, 2012
Rick Rule continues:
“Silver is already up nicely off its lows. It’s likely also that intermediate-term, that move is higher (in silver). I think we’re in a secular bull market. There are more people in the world wanting more stuff and they are more able to afford it. At the same time we are in a secular bear market in paper money. I see the next couple of years as being interesting in a positive sense for metals buyers and gold and silver share buyers.”
Rule had this to say about how to make money in 2012: “Well, this is shaping up to be a good (mining) market, Eric. Last year was a dismal market, which is, paradoxically, one of the reasons why this year will be pretty good. We’re coming off a low base and there are very low expectations and the valuations are extremely reasonable....
Continue reading the Rick Rule interview below...
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“It will not take much of a move to generate a pleasant surprise to the upside and get some emotion coming back into this market. The way you are going to play the game to make money in the juniors this year is to buy the companies that are rational takeover targets. I think you’re going to have takeovers on a monthly basis from here on out.
We are going to have two fires (under the junior market). There are going to be the mergers and acquisitions, but there are also going to be discoveries. The takeovers will yield premiums in the 30% to 50% range. The discoveries have the ability to yield 1,000% or 2,000% gains.
We are going to have a smattering of both of those (takeovers and discoveries) populating the market in the next 24 months. So I think it’s going to be a pretty exciting time.”
Rule is considered to be one of the wealthiest and most street smart pros in the resource sector. He gives King World News listeners some great advice on how to make money in this interview. The KWN interview with Rick Rule is available now and you can listen to it by CLICKING HERE.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
