With gold and silver surging along with the U.S. dollar, today one of the wealthiest and most street-smart pros in the business spoke with King World News about the question at hand: Are the gold and silver markets going to shock investors this summer?
Rick Rule: “Eric, you’ve taught me that markets move higher because there are more buyers than sellers at lower price levels. And although I’ve been a bit of a skeptic in the near-term because the stocks and the metals have moved so far, so fast, the truth is that they are very well bid and they are overcoming skepticism…
Continue reading the Rick Rule interview below…
Rick Rule continues: “The question is: Why is that happening? I have two possible explanations. One is that gold and silver are under-owned, and the truth is that the move higher has come mainly from the gold community and not from the rest of the retail investor world.
The second possibility is the exact opposite of that with regards to gold and the mining stocks, which is that the generalist fund managers, who are closet indexers, have had to come into the gold space because it was way, way under-owned by them and it’s the only sector in the market that has moved.
But what is interesting about both of those possibilities is that they both end with the same conclusion — possibility one, gold goes higher, or possibility two, gold goes higher.”
Eric King: “Rick, could this be one of those summers that surprises professionals, where they are away from their trading desks but the gold and silver markets continue to surprise by surging strongly to the upside?”
Rick Rule: “Well it’s certainly already been a summer that has surprised me. I had expected that after the strong up-move we experienced in the first part of the year that we would have a rest in the summer. But it’s very interesting that this market continues to absolutely barrel through all of the skepticism expressed by old market pros like myself.
I think what might be really ready to surprise on the upside now would be some of the very small names in the mining sector. You are noticing an increasing pace of takeovers among the small names. And my suspicion is that some of the small names are getting very, very thoroughly owned. In other words, very, very tight in terms of the stock being held. This can create the precise conditions necessary for some major upside breakouts in some of the high quality smaller gold and silver names…To learn more about exactly which high quality gold and silver names to own, listen to the extraordinary interview with the man who advises the most prominent sovereign wealth funds, pension funds, hedge funds, and institutional funds in the world by CLICKING HERE OR ON THE IMAGE BELOW.
***Also just released: Top Advisor To Sovereign Wealth Funds Warns Another Lehman Moment Is Coming As Gold & Silver Surge! CLICK HERE.
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