- Renowned investor Rick Rule shares his investment wisdom about precious metals.
- He outlines three companies with which to start your investment portfolio.
- Rule believes we are in the early stage of an industrial materials bull market.
- “What’s most important as a speculator is to concentrate on stock selection, not sector selection,” Rule says.
As we get deeper into the second half of the year, The Market Online spoke with sought-after speaker and investor Rick Rule.
Rule started his career in 1974 and is known for his expertise in many resource sectors. He is the founder of Sprott US Holdings, a subsidiary of Sprott Inc. – and retired from the company in 2021. He remains one of the company’s largest shareholders and is actively engaged in private placement markets, through originating and participating in hundreds of debt and equity transactions.
Rule shares his investment wisdom in the above video as we examine precious metals, with a focus on gold and silver.
He does not like to confine himself to six-month discussions and prefers a 60-month duration. Some of the highlights from the interview:
- “The second half of the year will be good, but not as easy as the first half has been.”
- Rule believes we are in the early stage of an industrial materials bull market (pending the absence of a recession).
- Performance of gold mining companies has been dismal, and gold stocks have some catching up to do.
- “I would anticipate the next two to three years will be very kind to discerning precious metals investors.”
- For investors who are setting up a portfolio, he likes Franco-Nevada, Wheaton Precious, Agnico Eagle
When looking at miners, he advises diligent investors to look at companies with at least 1 million ounces in indicated reserves and resources as well as a prefeasibility study and a preliminary economic assessment.
“What’s most important as a speculator is to concentrate on stock selection, not sector selection,” Rule says.
Silver story
Rule emphasized that silver usually follows gold.
“Silver tends to move further and faster after the momentum has been established by gold,” Rule says. “The silver jurors are in its early innings, as the momentum hasn’t been established by gold.”
He concludes that silver stocks outlasted the “hate” and in late 2023 and early 2024 they were regarded online as “toxic assets,” which is why he became so attracted to them.
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