Rick Rule: This Could be the Next Hot Commodity

The lithium and cobalt markets are red hot right now, but what’s the next commodity that’s coming up? At last week’s Sprott Natural Resource Symposium, Rick Rule, president and CEO of Sprott US Holdings, suggested that cobalt hasn’t yet finished its run.
“I think the next commodity that’s coming up is probably cobalt,” said Rule, adding, “we are investing in Congolese cobalt, we are investing in Russian cobalt, we are investing in early stage exploration for cobalt in lateritic terrains, both in Australia and Brazil.”
Rule also discussed the gold market, noting that he sees any upside in the gold price being fairly muted this year. When asked if he expects the US Federal Reserve to hike rates again in 2017, he said, “it would seem that the economy can accommodate rate hikes, so my hope is that they do hike the rate.”
In terms of which gold stocks to consider right now, Rule suggested that investors use the recent GDXJ (ARCA:GDXJ) rebalancing to their advantage.
“True speculators will be looking for companies outside the ETF that have a higher cost of capital and a lower share price, and [will] try and figure out which of those are strategic acquisitions for companies included in the sector,” he said. Investors should then, “buy the stock [and] hope for a takeover.”
Listen to the interview above for more of Rule’s thoughts on cobalt, gold and other commodities. 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.