My Blog
Rule - We Are Seeing Dislocations In Many Financial Markets
With gold up about $25 and oil trading almost $4 higher, today King World News interviewed one of the wealthiest and most street-smart pros in the business, Rick Rule. He warned that we are seeing dislocations in many financial markets. Rule, who is now part of Sprott Asset Management, also had this to say when asked about what is happening in Iran and how it is impacting markets: “I think that may be driving the gold price as well. You have a situation where the United Nations approves stronger sanctions against Iran, and apparently the sanctions that were already in place were already starting to bite.”
© 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 This material may not be published, broadcast,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.
July 3, 2012
Rick Rule continues:
“The Iranians have responded by announcing they had tested a surface missile which was capable of hitting Israel, and they regarded new sanctions against Iran as a security threat. There was also legislation moved in the Iranian Parliament that would call on the Iranian Navy to respond to sanctions by closing the Straits of Hormuz.
It remains to be seen if the Iranians have either the will or the capability to close the Straits, but I think the immediacy of the Iranian situation certainly played on energy and gold markets....
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:
“I’m not certain in the context of the gold market if the Iranian situation is an ongoing driver of the gold price.
But in the energy markets it certainly points out the fundamental tightness in crude markets that’s occurring worldwide. This move in oil markets, as a consequence of the fact that the Iranians were musing about something, says something about the fragile nature, both up and down, of global oil markets.
With specific regards to the gold trade, you are seeing a continuation of private buying of gold, and institutional selling of gold. I think some of the institutional holders are credit-constrained, but there’s strong, strong underlying demand from individuals, wealthy people if you will.
So I think you are seeing a change in the holders of gold, away from the hot money, small hedge fund type of commodity speculator, who was buying gold in a momentum driven greed trade, to private holders who are buying gold as I have always bought gold, in the context of a fear trade. And I think that’s sort of an interesting metaphor for the markets overall.
You have financial institutions and governments worldwide, frantically trying to deal with a solvency issue by increasing liquidity. So you are seeing dislocations through a lot of financial markets, equity markets, credit markets, commodity markets, that’s really driven by a nervousness associated with the global macro -- Combined with the sort of stimulus that comes from the incredible amount of liquidity that’s being pumped into the system. These are certainly interesting times, Eric.”
This is a tremendous interview with Rick Rule. He discusses where he sees markets headed for the second half of 2012, how investors should position themselves and much more. The King World News audio interview with Rick Rule is available now and you can listen to it by CLICKING HERE.
The interviews with billionaire Eric Sprott, legendary Art Cashin ($612 billion UBS), Jean-Marie Eveillard (oversees $50 billion) and Don Coxe ($538 billion BMO) are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include Ben Davies, Nigel Farage, James Turk and John Mauldin 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
