Time Stamp References:0:40 - Baron's Gold Mining Index chart7:30 - Five factors demonstrating a new gold bull market.17:10 - Sentiment risk and price versus value.25:20 - Determining when to sell juniors.30:20 - Broadly held premises that are wrong.36:30 - Uranium, where are we at in this market.42:00 - How this gold market may play out.45:45 - Testing your own assumptions.47:35 - Book recommendations.
Tom welcomes back the legendary investor, President, and CEO of Sprott U.S. Holdings Rick Rule. Rick explains the usefulness of Baron's Gold Mining Index since it's the longest-running gold index, and it shows the volatility and cyclicality of this market. Rick says, "If you are going to participate in this sector, you need to buckle your seatbelts for what will be an extraordinarily wild ride."
There are five factors (Federal liabilities, credit risks, money printing, negative interest rates, dollar confidence) that cause Mr. Rule to believe that we are in a new gold bull market. The gold market will likely be over when these factors begin to reverse.
Rick documents the risks around sentiment and why investors tend to absorb information that supports their existing beliefs. He explains his specific investing strategies around answering unanswered questions and methods of avoiding catastrophic loss.
He discusses why peak consumption in fossil fuels will not decline until 2035 and why modern eco-ideas around this are just wrong.
He argues the widely held belief that collective solutions and faith in government will solve our problems is false. Rick believes that advances in living standards worldwide are due to saving, individual creativity, and initiative. He says, "Thru this, we have been able to afford our collective stupidity."
Rick remains bearish on uranium for the near term because of Japanese energy consumption trends and inventory. He discusses the previous bull market and the extremes that were reached.
Rick Rule, founder and chairman of Sprott Global Resource Investments Ltd., began his career in the securities business in 1974. He is a leading American retail broker specializing in mining, energy, water utilities, forest products and agriculture. His company has built a national reputation on taking advantage of global opportunities in the oil and gas, mining, alternative energy, agriculture, forestry and water industries.