Rick Rule, President & CEO of Sprott USA Holdings, sounds off in one of his best interviews ever. Confident and collected, the 67-year-old speaks from experience, having lived through numerous bull and bear markets in the precious metals sector. Most importantly, and in somewhat rare fashion, Rule talks about when investors should look to exit gold and silver stocks. Finally, Rule warns individuals to ‘reset’ themselves to become “anti-fragile” during these times of increased volatility.
Rule is more articulate than usual in describing the current set of affairs. Even reciting poems, he pulls out all the stops, as his memory and investing strategies are on full display.
How Monetary Policy Will Impact Gold and Silver Stocks
Talking about the government response to COVID-19, Rule doesn’t mince words,
“Among other things, I think it is almost felonious. It is disgusting from an American point of view. To see all of the stimulus on offer and all of the traditionally politically connected hogs wallowing up to the trough to get their unfair share.”
“Silver lining, I guess, on a dark cloud. My suspicion is that the policy response to this crisis will be very good for precious metal investors and later for precious metals equities investors.
And I think it is our job to protect our portfolios and our families as best we can when confronted by this collective and collectivist madness.”
One of his main messages for investors of gold and silver stocks is to hoard cash.
Rule Urges Viewers to Hoard Cash
“In the volatility, which is certain to occur in the next 12-18 months, cash will give you the tool and the courage to take advantage of volatility.”
Rule talks about why governments no longer have to steal hard assets. They simply have to debase the currency. The U.S. is adopting the financial policies of Zimbabwe according to Rule. The paradoxical nature of central banks holding gold is discussed as well as gold and silver price action.
When to Exit Gold and Silver
Finally, Rick Rule gets specific on when it will be time to sell gold and silver stocks.
“I personally, as a saver, will never be without gold in my portfolio because I regard it as insurance.”
He goes on to explain,
“There will likely be a time 2-3 years from now when I hold less gold than I have now because other investment classes will appear to me to be more attractive.”
“What gold does for me, it allows me to sleep nights and stay calm.”
Finally, Rick Rule believes the first moves will take place in the high-quality gold equities, which will be followed by gold equities and finally silver stocks. Uniquely, Rick tells gold and silver investors that when they see him on Fast Money and other mainstream media programs, it will be time to sell some precious metals.