A Conversation with Mining Legend Rick Rule
In case you don’t know, Rick’s a well-known mining investor and former president and CEO of Sprott US Holdings. Rick began his career in the securities business in 1974 and has been principally involved in natural resource stock investments ever since. More recently, he just launched his own research arm, Rule Investment Media.
He has financed numerous exploration and mining companies over his 45-year career.
And right now, he believes a recovery in the gold price — and the value of gold stocks — is imminent.
I completely agree, and it’s why I was delighted to talk to him on your behalf.
Because on the surface, gold stocks are not making sense.
The gold price in Aussie dollars is now trading back at high levels not seen since January this year. But gold stocks are yet to follow suit.
The ASX Gold Index [ASX:XGD], for example, is 14% lower than it was at the start of the year.
And some of our speculative stock recommendations are down too.
Investigator Resources Ltd [ASX:IVR] is down 39%…
Kingston Resources Ltd [ASX:KSN] is down 26%…
Musgrave Minerals Ltd [ASX:MGV] is down 23%.
So did I make bad recommendations?
No, I don’t believe so.
If you read my Daily Reckoning article last Friday, you would have learnt about an index I created to track the performance of a selection of speculative gold explorer and developer stocks.
Guess how much these stocks are down since this April?
The index is down 9.66%!
However, the returns of the individual constituents range from -51% loss to 36% gain.
Yes, it’s brutal out there.
But I have good news for you…
Most of the companies that are in our portfolio have not experienced a turn for the worse in their business. I have been keeping track of them closely.
Some may be slow in achieving their short-term goals.
So if they are trading at lower prices now, it means one thing.
It’s now offering you better value than before!
And as you’ll see, Rick’s viewpoints further backs up this thesis.
We discussed the recent moves in the gold price, the absurdity of the debt-ridden fiat currency system, and opportunities in investing in gold stocks.
You might like to hear that Rick believes the speculative end of the gold stocks market is very cheap. He has been selling down some of his large producers in his portfolio and moved them to the junior miners or the explorers.
Check it out below: