The commodity bull run, led by uranium, gold, silver and copper, is in full swing. Uranium has tripled in the past few years, while silver is up over 50%. Silver was up nearly 4% today as the metal continues outperforming gold, which recently hit an all-time high above $2,400 per ounce.
So, if dollar devaluation is incoming, investors should heed the advice of renowned mining and commodity investor, Rick Rule. We had Rick on the podcast a few weeks back, and his sage advice on all things commodities is worth the listen.
Rick Rule and Aaron Hoddinott discuss what commodity looks attractive from a long-term investment perspective. In May 2024, Rick’s chosen undervalued commodity is North American natural gas. He believes the low price encourages consumption but discourages exploration, leading to higher prices.
Concerning natural gas’ price potential, Rule pointedly notes,
“The cure for low prices is always low prices.”
Gold’s Price May Triple Before Bull Run Ends
Providing historical context, Rick Rule explains why he thinks gold’s price could triple over the next decade. While Rule doesn’t suggest it is a guarantee, he believes a triple from today’s gold price is more of a probability than a possibility…
Previous commodity bull runs, such as in the 1970s, saw gold increase from $35 per ounce to a high of well above $800 – providing a 25X for investors. In the 2000s, gold went from under $300 to almost $2,000 per ounce in 2011, again providing investors with many multiples (approx. 6.5X). With gold having not even doubled from its 2011 high, and tens of trillions in new fiat money in circulation since then, its big move may well be ahead.
U.S. Debt and Interest Payments Spiral Out of Control
Alexander Smith and Aaron Hoddinott discuss the continually rising U.S. national debt and its near-term implications for the country, its citizens’ overall standard of living, and the U.S. dollar.
The U.S. national debt is growing by about $1 trillion every 100 days…
Alex explains,
“There is $7.6 trillion in interest-bearing U.S. Debt maturing in 2024. 31% of all U.S. government debt is coming due. If they are forced to renew at the current levels, the interest on the debt is going to approach and exceed 2 trillion dollars.”
Alex explains that the Fed will have to lower interest rates later this year and significantly reduce them in 2025 to avoid paying more than $2 trillion in interest annually. Aaron argues that if they don’t lower interest rates, social programs and defense budgets will have to be cut, or the U.S. will risk bankruptcy. In other words, living standards for many Americans will likely decline.
Texas Pursues State-Controlled Digital Currency Backed by Gold
As the Federal government in the United States continues to spend recklessly, running multi-trillion-dollar deficits, some states have had enough…
Texas is actively pursuing the creation of a state-controlled digital currency backed by gold. The proposed legislation, Senate Bill 2334 and House Bill 4903 aims to establish a digital currency fully backed by gold held in the Texas Bullion Depository.
This currency would be redeemable in gold or cash equivalent to its gold value, ensuring it maintains its value over time.
As Americans bend under persistent inflation, many are seeking a way to protect their wealth and purchasing power.
Even if inflation settles down to 2-3%, many households will be permanently damaged or priced out of various activities after the past few years. For retirees on a fixed pension, not inflation-adjusted, their lives have been altered.
The effects of inflation have led investors to question how to preserve purchasing power. The investments that worked well from 2011 to 2021 aren’t doing so well today. On the flip side, commodity investments are rising in popularity as more people pour money into gold, silver, and other hard assets. If capital flows are any indication, the commodity bull run is only just getting started.
