Tag: Rick Rule

Finding Bargains Down Under

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The Gold Report: You recently said that this is your fourth cycle in a commodity sector in your 40-year career. Where are we in this current cycle, and how do you determine that?

Rick Rule: The bottom is usually marked by a two- or three-week period of capitulation selling followed by a standoff, where both the buyers and the sellers are exhausted. We haven't seen that yet. We've had two or three different periods with a couple of days of capitulation selling but not a two-week period as we saw in 2000.

I wouldn't be surprised if the downturn was four years, which suggests we have a year and a half to two years before we clean out the excesses. The junior sector is substantially overpopulated with companies, managers and agents. There needs to be a major cleansing over the next 18 months.

TGR: Will it be more cleansing or more mergers and acquisitions? Continue reading "Finding Bargains Down Under" →

Rick Rule: Be a Risk Manager, Not a Reward Chaser

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The Gold Report: Rick, you believe the natural resources sector is experiencing a cyclical decline in a secular bull market similar to the 1970s. Is that true for other sectors as well?

Rick Rule: I learned the hard way not to assume that my success in the natural resource business was transferable to other sectors, so I am going to stick with resources.

However, there are parallels with the gold market. In the 1970s, we had a spectacular resource market, in particular for gold. Its price soared from $35/ounce (oz) to $850/oz. By 1975, in the middle of that secular bull market, gold had fallen to $100/oz. Those who sold at the bottom missed an 800% move in six years.

"I own gold the way that I own life, auto or homeowner insurance. I regard it as catastrophe insurance."

It is important to understand that in cyclical markets like resources, declines in secular markets are to be expected. From my point of view, you need to understand cyclical declines for what they aresales.

TGR: Is it fair to think that the prices of natural resources will bounce back as they did in 1970s, when the recession was much shorter and not as global? Continue reading "Rick Rule: Be a Risk Manager, Not a Reward Chaser" →

Rick Rule: "Avoiding the Ugly in the Junior Resource Sector"

Posted on by The INO.com Team

In this excerpt from a talk at the Casey Research Recovery Reality Check Summit, legendary resource speculator Rick Rule makes a strong case for careful, disciplined investing in the junior resource sector, despite the market turning truly ugly.

You can hear Rick's entire entire presentation, along with those by the 30 other experts at the Summit – including their stock tips and other recommendations. The full audio collection is available in CD or MP3 format. Get full details here.

Rick Rule's Primer on Contrarian Speculation

Posted on by The INO.com Team

In an interview with Louis James, Rick Rule provides an excellent summary of what contrarian speculation investment is and makes a powerful case that the current metals climate means gold stocks are the play to make.

[If you weren't present at this timely summit, you can still learn the details of Rick's current investment strategy, plus much, much more. Get the actionable advice and economic perspectives and insights of 31 financial luminaries to make sure you don't miss the opportunities ahead.]

Louis James: Ladies and gentlemen, welcome. Thank you very much for tuning in. We are at the Casey Research Summit – the reality check on the recovery of the economy. One of our luminary speakers who is always at our events, Rick Rule, is with us here now. We'd like you to give us the quick tour of your talk today and we'll go from there.

Rick Rule: Sure. My role here wasn't to do economics; that's not what I am. I am a speculator, and so I talked about where we are in the context of where people are with their own portfolios – in particular portfolios that are junior-resource centric – which is what I think most of your audience was interested in. Continue reading "Rick Rule's Primer on Contrarian Speculation" →