Rick Rule – Gold & Silver Plunge Has Quality Assets on Sale
March 7, 2012
With extraordinary volatility in gold and silver, today King World News interviewed Rick Rule, CEO of Sprott USA. Rule spoke with KWN about the recent action in gold and silver and what readers should focus on going forward. Here is what Rule had to say: “If you want to be long gold and silver, if you like real currencies as opposed to fiat currencies, you have to like days when you can buy it cheaply. I’ve been around this type of action for 35 years and I suspect, before I shed my mortal coil, I will purchase much more physical gold and silver bullion.”
Rick Rule continues:
“In order to do that I need days like this. People who have less faith in their own precepts and in their own studies might get shaken out by action like this and they might deserve to get shaken out. The reason being given (by the mainstream media) for the downturn in gold and silver is a return of confidence in the US dollar.
I guess some people were encouraged by what they heard Bernanke say last week. They and I must have heard a different speech because I wasn’t particularly encouraged….
“So, as I say, I am personally delighted to see soft days in gold and silver and I’m even more delighted to see soft days in gold and silver stocks. Many of these equities are reasonably valued and on their way to becoming cheap.
Many or your readers will remember this from personal experience, there were truly spectacular buying opportunities during corrections in the 1970s gold bull market as gold ran from $35 to $850. The pullbacks were opportunities, but only for those who had the presence of mind, the cash and the courage to buy.
Attention bargain shoppers, do you like ‘blue light’ specials? We just had a day where something you want to buy went on sale. Some people are bothered by this. I don’t understand this, Eric. When something you want to buy gets cheap, the world is doing you a favor.
When I think about where I have the opportunity to allocate my wealth, I believe gold, silver, the resource sector and select mining shares are the place to be. So, I’m happy to see decent assets go on sale that I think will preserve my purchasing power over time.”