Speaking to the Investing News Network on the first day of PDAC 2018, Rick Rule of Sprott US Holdings had this advice for investors.
“[Use] common sense. Don’t fall for stories, don’t fall for narrative. Remember that the price of a stock is only important if you have an opinion as to its value. The price is a floating abstraction. It’s the delta between price and value that matters.”
For those interested in gold stocks, Rule had encouraging words, commenting, “of any sector on the equities side that … will do well this year, gold I think does the best.”
He explained, “the shares haven’t kept up with the metal, and sectors increase in price when they exceed expectation. The expectation for the gold stocks is so low that they can’t help but exceed expectation. I think it’s going to be a good year.”
In terms of other commodities he’s interested in, Rule is “looking to move into the agricultural minerals businesses — phosphate and potash.” They’re “absolutely dead, they have no life,” he said, adding, “if people talk about them at all they talk about them in disparaging, almost pejorative terms. I like that.”
He also commented, “next week I will be buying the best of the best small-cap Canadian condensate and natural gas stocks … could they go down 20 percent? Yeah, absolutely — and I’ll buy some more.”
Watch the interview above for more insight from Rule, and click here to view our PDAC 2018 playlist on YouTube. The transcript for this interview will be added shortly.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.