TSXV Not All Carnage and Wreckage: Rick Rule

Rick Rule, founder of Sprott Global Resource Investments, is a fixture at mining industry events, and Cambridge House International’s 2015 Vancouver Resource Investment Conference was no different. Held at the Vancouver Convention Center from January 18 to 19, it saw Rule sit on a number of panels and talks.

Despite his busy schedule, Rule was able to take a few minutes to speak with Resource Investing News about a variety of topics, including what global catalysts investors should be watching for in 2015, whether any juniors present opportunities and just what’s going on with the gold price.

Highlights include Rule’s thoughts on the economy. Though he noted that the US equity markets have been indicating for the last six months that a recovery is in place, he said he hasn’t seen that recovery. “If we actually have a recovery, if the equity markets are right, the resource markets will rip. The problem with resources has not been too much supply, it has been very weak, very, very, very tepid global demand. If we see a recovery, if the major equity markets are right and we see a genuine recovery … then the resource markets will rip,” he said.

He also commented on the TSXV, stating that about 20 percent of the companies on the exchange have a reason to exist. While that makes 80 percent of them superfluous, it also means that “within that 20 percent there are some truly outstanding companies … there are some superb people out there doing some superb work. And what’s great about a bear market is that these guys are on sale cheap. The best of the best goes on sale with the flotsam and jetsam.”

Rule concluded, “the idea that everything on the TSXV is carnage or wreckage, that there’s no quality, is idiotic.”

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.

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