Extreme Nervousness in Regards to Collapse-Gold Silver a Must-Rick Rule
By Greg Hunter
15 APRIL 2013
Precious metal expert Rick Rule is not worried about the recent smack down in gold and silver prices. Rule is motivated by wealth protection. So, the price decline is a “nonevent.” Rule asks, “What are the alternatives? Perhaps you’d like to buy a 30-year U.S. Treasury, something Jim Grant famously described as a return-free risk.” Rule thinks the financial world is far from healthy and says, “I have extreme nervousness in regards to a collapse. . . . The only way we could avoid collapse is if we inflate away the net present value of our obligations. In both sets of circumstances, I am personally more comfortable owning precious metals than not.” Cyprus is a stunning example of why people should store some wealth in precious metals. Rule contends, “If you were a Cypriot citizen and you had stored your wealth in gold and silver as opposed to having your money on deposit in a Cypriot bank, the Cypriot banking crisis, for you, would be interesting but not relevant.” If there is war in Korea, Rule predicts, “If a nuke goes off on the Korean Peninsula, the first move in precious metals would be down. . . . The second move would be higher. I also believe precious metals would hold their value over time UNLIKE most other asset classes.” Join Greg Hunter as he goes One-on-One with Rick Rule, Chairman and founder of Sprott USA.