On the heels of a rally 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, what are your thoughts on what’s happening with gold, silver, and the mining shares?”
“Looking For Opportunity”
Rick Rule: “I would describe myself right now as looking for opportunity. And we are very well cashed up at this point at Sprott. My own suspicion at this point is that the mining share market is a little bit overbought and will consolidate and we would like to buy into this consolidation…
Continue reading the Rick Rule interview below…
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On The Road Again
Rick Rule continues: “It’s very worth noting for your global readers, Eric, that I’m just back from the biggest mining convention in Africa, which was incredibly well attended. And after that I did a 7 day road trip in Europe going to see Sprott’s institutional community in Europe.
If you remember two years ago, Eric, I said that the big money was circling the mining industry. Last year I told you that the institutional money had arrived in the mining industry. I can tell you now, after closing a $500 million lending fund for Sprott Inc. and visiting some of the largest institutional investors in Europe, that the money isn’t circling — it has now more than arrived and it is ready, willing, and eager to participate. And when good opportunities are presented the money is there in virtually whatever size necessary to make those very good ideas happen. Eric, this is a situation that wasn’t present in 2014 – 2015. What’s missing now are very high-quality ideas to attract that money.”
Eric King: “What about the gold and silver markets? Where do you see them headed?”
Rick Rule: “I see strength in the U.S. dollar right now, so I see gold trading sideways, although probably not down relative to the U.S. dollar.
I’ve Only Seen This Bullish Setup Twice In My 52-Year Career
We are now at an odd place in the world. It’s a place that I’ve only seen twice before in my career, where the U.S. dollar and gold are doing well simultaneously. The same clients in Europe that we talked about mentioned to me that there are about 16 trillion euros in private circulation in Europe. They said it wouldn’t surprise them if one trillion or 1.5 trillion euros migrated over the next 18 months to North America as a consequence of sort of centrifugal pressures in Europe. What that means is that the United States dollar, despite some problems in the U.S. economy and some nervousness associated with the new administration, is relatively attractive compared to other alternatives.
My suspicion is that the U.S. dollar in the 18-month time frame will begin to weaken and that gold will do well as a consequence. This will mirror what happened in the mid-1970s and again in 2002. These were both periods where gold and the dollar did well simultaneously, which presaged a bit of a decline in the dollar and a strong upward move in gold. I won’t be surprised at all to see that happen over the 18 – 24 month time frame.”
***KWN has released the remarkable audio interview with Michael Belkin, the man who counsels the biggest money on the planet, discussing the mining shares, gold, silver, global markets, and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: We Are Headed For Something Disastrous On This Earth That No One Has Ever Experienced CLICK HERE.
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