After the decline in gold and silver, today one of the wealthiest and most street-smart pros in the business spoke with King World News about what they are doing at Sprott Asset Management with their money right now.
Eric King: “Rick, you had predicted that we would be weak in the metals and mining shares into the end of the year — your thoughts on what’s happening?”
Rick Rule: “It’s interesting because the markets reversed in the sense that the industrial materials markets, which were weak, have become a bit stronger, while the gold and silver markets, which were strong for the the first 7 months of the year, have become weaker…
Continue reading the Rick Rule interview below…
Rick Rule continues: “I think a lot of that is due to the emotions and the narrative surrounding the Trump victory. People are trading the narrative that America will be great again, so the U.S. dollar is very strong and gold has weakened as a consequence. There is a sense that between the Chinese Silk Road and the planned infrastructure spending by Trump that this will drive demand for industrial commodities and at the same time this will strengthen the world economy. I think those premises are wrong.
A Look At 2017
I think 2017 will see one of those unique situations where the dollar moves up as a consequence of the relative strength of the U.S. economy, but I also believe that gold will move higher as well as a consequence of negative real interest rates on a global basis and increasing realization among investors that the debt and deficits of various governments are not sustainable.
With regards to the industrial metals, I don’t think the demand creation will be there, but I think prices will move higher as a result of supply destruction. This will be a messier phenomenon but one that will generate larger price increases.
Assuming that people took profits as I advocated in the summer on King World News, I think we will be looking at the same type of reload opportunity that we saw in late 1975 and late 2001 and early 2002. No bull market goes straight up. There are retrenchments that are normal and healthy and right now we are seeing exactly that.
Here Is What Sprott Asset Management Is Doing
The gold and silver mining shares have been hammered and that has created enormous opportunity for investors. We are carefully deploying capital at Sprott Asset Management into private placements with high-quality companies that we believe will experience significant upside moves as the market correction comes to an end.
Looking at the start of 2017, the elites clearly do not like Trump, and this should create a lot of noise as he moves to push his agenda through Congress. That noise should be extremely positive for the gold market. So while it is possible that gold might remain weak at the start of the year, at some point we will see some real fireworks to the upside in 2017.”
***KWN has released one of legendary Art Cashin’s greatest audio interviews ever discussing the gold market at length, including the recent takedown in gold, what to surprises to expect in key markets as Trump becomes president, and what impact massive public works projects will have on the United States, inflation, gold, bonds, and much more. and you can listen to this extraordinary interview by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has also released the extraordinary KWN audio interview with whistleblower Andrew Maguire, where he discusses the gold and silver smash, at what price the large sovereign wholesale bids are located, and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Former Soros Associate Just Warned The Pros Have Have It Wrong, Gold & Silver Will Skyrocket Like The 1970s CLCK HERE.
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