Rick Rule knows gold and other resources like perhaps no one else does. Being at the helm of Sprott Global he would have a unique view of the global resource environment. But when Rule insists that investing in gold and junior gold mining companies today is sound strategy, skeptics raise a red flag. Looking at the steep decline in gold prices is enough to convince many that Rule has it all wrong.
So does Rick Rule really believe gold will have resurgence once again? Or is his advice merely meant to drive naive investors back into the precious metal so big investment companies can take profits and run away?
The Real Truth About Gold!
Resource driven economies, such as Australia, are largely dependent upon the mining industries ability to pull metals like gold out of the ground cheaply, and sell at a profit. And though the price of gold and other precious metals continues to decline:
- Rick Rule believes that trend will turn – as it has done so historically!
- He holds that that the current slump in resource stock prices is an excellent buying opportunity – confirming the “buy low sell high” thesis!
- His thoughts about impending global inflation driving the price of gold up are shared by a number of renowned economists and bankers!
Given these facts, it would make perfect sense for the Rick Rule global resource investments theory to be credible. Similar slumps in gold prices over the last several decades have subsequently resulted in unparalleled rallies in the prices of the precious metal as well as resource-based stocks.
Is Gold Still Ling?
Everything that Rick Rule says about gold has proven to be true in past economic cycles. Nothing in the latest down-trend in gold prices seems to indicate that this current cycle too won’t follow the same trend lines. As a hedge against currency-printing (i.e. Quantitative Easing, Global Stimulus etc.) and inflation, gold is seen by investors as a safe harbour investment.
Rick Rule believes that signs of inflationary pressures around the world will cause central banks to react by raising interest rates. Recent moves by Japan and India are harbingers of such policies. When that happens, currencies and income/dividend bearing stocks will suffer. In environments such as that, gold will rise once again as King!
Turning Your Thoughts Into Gold!
Rick Rule of Sprott is well placed to advise investors about gold and how it can play an important part in their investment portfolios. But Australians eager to create wealth also have a great wealth-creation recourse trapped inside them – their thoughts! Stuart Zadel’s Think and Grow Rich helps unlock your thoughts and turn them into golden wealth-building actions.
Order your FREE hardcopy of this amazing book today by simply requesting it online. And while you are at it you may want to consider attending an informative wealth creation seminar as well. Register your FREE ticket today because I know how quickly seats fill up for a cracker of an event like this!!!