Rule discusses the gold and uranium markets, as well as which metal he thinks could have a “bull market for the record books” in 2020.
Veteran investor Rick Rule of Sprott (TSX:SII,OTC Pink:SPOXF) has his eye on both gold and uranium, but it’s the former that has more of his attention right now.
“I like the uranium business. (But) I’m more focused on gold right now because I see gold moving this year and uranium moving next year,” he said.
Rule was speaking at the Sprott Natural Resource Symposium’s media day, held on Monday (July 29). The Vancouver-based event officially begins on Tuesday (July 30) and runs until Friday (August 2).
Explaining his optimism about gold, Rule said that he believes the factor that has the most important impact on the gold price is confidence (or lack of confidence) in the purchasing power of the US dollar.
“For 20 years, the risk-off trade globally has been the US 10 year Treasury, and faith in the US 10 year Treasury I think is beginning to subside. Now, the truth is if you buy the argument that gold trades inversely to the US 10 year Treasury — the US 10 year Treasury has been in a bull market since 1982. This bull market is now 30 something years old,” he said.
“I would suggest to you that the bull market in the US 10 year Treasury is either over or almost over, which suggests that the bull market in gold is either underway or just about to begin.”
In terms of uranium, Rule emphasized that despite his positivity about the space, it’s impossible to know when the market will turn. However, he pointed out, “The truth is that when the uranium markets move, the impacts on uranium stocks are more dramatic than any other stocks in the resource sector.”
For those attending the symposium, Rule highlighted two can’t miss panels: Wednesday’s (July 31) living legends panel, featuring Ross Beaty and Robert Friedland, among others, and its counterpart, the young leaders panel on Friday with Amir Adnani, Keith Neumeyer and Nolan Watson.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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