With gold and silver on the move, 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, where are we right now in the gold and silver markets as you see it?
Rick Rule: “As we speak on a day when Janet Yellen gave her speech, the gold and silver markets seem to be faltering. I don’t think a year from now we will remember that Janet Yellen gave a speech but that’s a different issue…
Continue reading the Rick Rule interview below…
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Rick Rule continues: “My suspicion is that gold and silver are due for a pause anyway and that the gold and silver stocks are likely due for a correction. At least that’s the way we at Sprott are pursuing things. We are actively pursuing financing deals and we are looking for a softening in the gold and silver equity prices that will scare off our competitors in terms of providing capital for gold and silver companies.
In other words, we like the coming two or three year time frame and we think that the softness in the market is overdue and we hope to take advantage of that. For people who are real active traders, this might be a good time to book some of the gains that they have enjoyed so much of over the summer. But understand that we are in the very early innings of what I suspect will be a very long bull market. So this would only be a trading sell if you feel like selling.
From our own point of view at Sprott, while we have trimmed some positions that have run hard, we are looking to deploy an awful lot of capital in the sector in the next three months, which we suspect might be a soft three months, in anticipation of harvesting those gains next year and the year after.”
Eric King: “When you step back, Rick, and look at the bigger picture — minus corrections and shakeouts in gold, silver, and the mining shares — what do you see happening long-term?”
Rick Rule: “Well, investors forget that 30 or 40 percent cyclical declines in secular bull markets are common. By the way, Eric, I’m not saying that’s going to happen, but one thing that might happen is that a cyclical decline in a secular bull market could cause some of the people who participated in the market to believe that the bull market that we’ve enjoyed for the last nine months is a head-fake, which I don’t believe it is.
I believe that you have to have enough cash in your portfolio that you have both the courage and the tools to take advantage of these cyclical declines. It’s important to have the psychological staying power to stay intact, but it’s also important to have the fiscal staying power to not only stay the trade, but also to take advantage of other people when they get scared in these cyclical declines, which are absolutely inevitable.”
***KWN has now released the extraordinary audio interview with 50-year veteran John Embry, where he discusses the big picture in the gold and silver markets, the coming global financial carnage and much more, CLICK HERE OR ON THE IMAGE BELOW.
***Also just released: The World Is About To Witness A Terrifying Mega-Bubble Collapse CLICK HERE.
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