With the war in the gold and silver markets continuing to rage, today one of the wealthiest and most street-smart pros in the business spoke with King World News about why the U.S. dollar is in trouble and gold is headed much higher.
Rick Rule: “Everybody points to a number of different factors in the precious metals market, but I think the most important is that precious metals trade contra to the U.S. dollar, particularly the U.S. dollar as expressed by the U.S. 10-Year Treasury. U.S. Treasuries have been in a 35 year bull market…
Continue reading the Rick Rule interview below…
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Rick Rule continues: “Whether or not U.S. Treasuries have further to rise is less relevant than whether you are the beginning or the end of that bull market. The interest rate on the U.S. 10-Year Treasury has fallen from 15% to 1.7%, in what has been an absolutely historic bull market. And I would venture to guess that the bull market in the U.S. 10-Year Treasuries is much close to the end of the bull market than to the beginning.
U.S. Dollar Bull Is In Serious Trouble – Gold To Benefit
If you believe that theory, and if you believe that gold trades contrary to the U.S. 10-Year Treasury, than the bull market in gold is much closer to the beginning than the end. Does this indicate a one to three month projection? No, absolutely not. We are talking about 10-year cycles, 20-year cycles, and 30-year cycles. But if you believe, as history has shown for the last 30 years, that gold primarily trades contra to the U.S. dollar, particularly contra to the U.S. dollar as expressed by the U.S. 10-Year Treasury, then the gold bull market has lots further to go.
The long-term narrative for gold is extremely bullish. We have now seen a lot of very smart people stepping into the gold market, and there are two things that attract us to the gold bull market: First of all our internal technician Paul Wong, who has been bearish gold, is suddenly very pro-gold. The truth is that right now the gold market right now features many more buyers than sellers, so technically the market is going higher.
And I just covered the second thesis above, which is the fact that gold trades contra to the U.S. dollar. So those two things: The fact that gold is very, very well bid, and that the reason for it to go higher is also intact (inverse relationship to the U.S. dollar), tells me that we are in the right place at the right time.”
***KWN has now released the extraordinary audio interview with Bill Fleckenstein and you can access it by CLICKING HERE OR ON THE IMAGE BELOW.
***Also just released A Coming Event That Is Going To Shock The World CLICK HERE.
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