"The market's affinity for silver now is where the market's affinity was for uranium two and a half years ago," said Rick Rule.
Rick Rule: Uranium Was Unloved 2.5 Years Ago, Now Silver is in the Same Spot youtu.be
Veteran investor and speculator Rick Rule had his sights set on uranium years before 2021's takeoff, and now he sees a metal that's just as unloved as the energy fuel was back then.
Speaking to the Investing News Network, Rule, who is now proprietor at Rule Investment Media, said he believes silver is currently in the same place uranium was not long ago.
"What I want to say to speculators is yes, there's more room to go in uranium, but the market's affinity for silver now is where the market's affinity was for uranium two and a half years ago," he said.
Outlining his positive silver outlook, Rule noted that precious metals bull markets first tend to favor gold as "fear buyers" rush toward it for insurance. Once gold has momentum and the precious metals narrative has gained wider acceptance, investors and speculators ("greed buyers") enter the market and silver begins to take over.
"The second half of the two (precious metals) bull markets that I have been through have been silver-centric, and I would say to the speculators ... that the most upside volatility that you see in precious metals markets are in reasonably high-quality silver equities," he said during the conversation.
When asked about this year's silver squeeze, Rule said that while it was "incredible" to see how much physical silver retail investors snapped up, he thinks the real silver squeeze is yet to come.
"The real silver squeeze is simply about the market share of precious metals returning to their historic means," he explained. "It's about university pension funds, state pension funds and insurance companies going from having no precious metals ... to having 2 or 3 percent in precious metals." In Rule's opinion, it's a matter of when this happens, not if. And when it does, demand for precious metals will triple, creating a supply scramble.
Of course, he did point out that the circumstances that lead to higher gold and silver prices generally aren't positive for other parts of the market. "A circumstance that sees higher gold prices — which unfortunately I think we're going to see — is one where the rest of your portfolio is challenged," he noted.
He encouraged market participants to know why they want to own gold and act accordingly.
"What you see about gold is it can do nothing for you for long periods of time, and then it does spectacular things for you over fairly short periods of time," he said.
Watch the interview above for more from Rule on gold and silver, as well as uranium, oil and gas.
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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.