My Blog
Rick Rule continues:
“I wonder what their alternatives are managing large amounts of cash? It’s pretty clear to me that the purchasing power of dollars is going to continue to decline. People holding Treasuries are losing a great deal of purchasing power.
The equity markets are a difficult place to invest large amounts of money because of the difficult economic conditions we face going forward....
Continue reading the Rick Rule interview below...
Advertisement
To hear what billionaire Eric Sprott & Rick Rule are doing with their own
money and which $10 billion company John Embry &
Dr. Marc Faber oversee click on the logo:
“Certainly Mr. Paulson and Mr. Soros have to deal with large amounts of money. The fact that they are very prescient investors, both of them, in terms of futures markets and currency markets, probably adds to the reasons why they feel comfortable betting on gold.
Their traditional areas are so volatile and risky, so I understand the move. What I find interesting is the timing of the increase and what it says about the likely direction of the price of gold going forward.
I have told you that quantitative easing is simply counterfeiting and it is happening around the world. One of the reasons why we have seen so little volatility in the global markets is there is so much cash around because of the printing.
The central bank officials know this, and they are very leery about cutting off that source of cash to the market because they want the markets to stay quiet. This is coordinated action to some degree, but governments around the world are engaged in currency wars and competitive devaluations.
These governments want their currencies lower. They want to maintain whatever competitiveness is left in their economies. They also want to reduce growing unemployment. They are also using the newly counterfeited money to buy newly issued bonds in order to keep up with their spending programs.
So the reality is these countries can’t stop quantitative easing. Their failure to stop quantitative easing is naturally leading to more gold buying. This environment could not be more friendly to gold bulls and I fully expect higher prices going forward.”
© 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 This material may not be published, broadcast, rewritten, or redistributed.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.
The interviews with Egon von Greyerz, Michael Pento, Wilbur Ross, Don Coxe (BMO $538 billion) and Ben Davies are available now. Also, be sure to listen to other recent KWN interviews which included Art Cashin (UBS $612 billion), Nigel Farage, Bill Fleckenstein, Rob Arnott (RALLC $100 billion) and Gerald Celente by CLICKING HERE.
Eric King
More Filings From Large & Influential Investors Buying Gold
Today one of the wealthiest men in the resource space said that in the very near future we should expect more filings from large and influential investors buying gold. Here is what Rule had to say: “We just had reports that both Paulson and Soros have been adding to their gold positions, which now total roughly $4 billion. It doesn’t surprise me that they are adding to positions. My suspicion is that in the coming months we are going to see more reports of large and influential investors doing the same thing.”
© 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.
November 23, 2012
