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Rick Rule continues:
“The second option is the money finds its way into the prices of goods and services by way of inflation. The certainty is that we have to reckon with the debt we have. So we may take the other default option and inflate away the price of the bonds.
Given, from my point of view, the job of government is to redistribute, lie, steal and cheat, it seems to me that the likely method they will choose, the method that has the greatest yield to politicians, will be to inflate away the obligation over time....
Continue reading the Rick Rule interview below...
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“One of the things that’s happening is it’s beginning to dawn on people that Bernanke’s recent and very incredible statement that he will do whatever it takes, has at once strengthened gold, but also strengthened everything else.
He basically said that he would keep the system liquid for as long as it takes. A rising tide of liquidity then floated all ships. It is still my supposition that what comes out ahead of the rising tide of liquidity will be, especially, (gold & silver) bullion.
I don’t see any way out of the incredible increase in the supply of currency units, without any real increase in the supply of real goods and services being anything other than inflationary. My suspicion continues to be, and I suspect your suspicion continues to be as well, Eric, that this will eventually manifest itself into higher precious metals prices, and most likely sharply higher precious metals prices.”
Rule had this to say regarding the mining shares: “The mining shares have been rebounding nicely, and I suspect that will continue to be the case. I continue to believe that the higher quality developmental gold juniors, the ones that have grade, and are financially accretive for acquirers will do well.
The lesser quality or dreadful companies will not do as well. There is so much demand for pent up capital that is needed just to sustain G&A, and that sets up a situation where the capital flows will most likely get eaten up in offerings rather than in open market purchases.
There will be a lot of tax loss selling in November and December, and your readers may as well beat the rush and do the tax loss selling now in the mistakes in their portfolios. I would also add that investors can take advantage of any tax loss selling at that time in high quality names to add to their portfolios later this year.”
© 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 Bill Fleckenstein, Egon von Greyerz, Felix Zulauf, Rob Arnott, Michael Pento, Gerald Celente, James Dines and Marc Faber are available now. Also, be sure to listen to last week’s line-up of other KWN interviews which included James Turk, Art Cashin, Egon von Greyerz, and Sean Boyd by CLICKING HERE.
Eric King
Rick Rule - Look For Sharply Higher Gold & Silver Prices
Today Rick Rule told King World News that all of the global money printing, “... will eventually manifest itself into higher precious metals prices, and most likely sharply higher precious metals prices.” Rule, who is now part of Sprott Asset Management, also spoke about the rally in gold, silver, and the shares.
But first, here is what Rule had to say about the ramifications of more money printing: “The money being created has to find its way into something. I guess there are two choices. It could find its way into a default cycle. In other words the newly printed money would replace money that’s gone to ‘money heaven’ as a consequence of defaulting bonds, if you have a market clearing event.”
© 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.
September 18, 2012
