Six Reasons to Own Gold Equities Now

Six Reasons to Own Gold Equities Now May 28, 2020 This article was originally published at As of April 30, 2020, gold mining stocks were up 11.01% YTD and 57.87% YOY. Gold miners have climbed steadily, following the positive path we predicted back in November 2019.  As of April 30, 2020, gold mining stocks were up 13.81% YTD and 58.67% YOY, compared to -12.36% YTD and -7.91% YOY for the S&P 500 Index. In our view, gold mining equities still have a great deal of upside to offer, given that historically gold stocks tend to outperform the metal during gold bull markets (2-3x). We believe that we are still in the early stages of the current gold bull market which began in May 2019. Rising demand for gold and higher gold prices are followed by strong gold mining stock performance. Here are Sprott’s six reasons why investing in gold equities may make sense right now. REASON #1. Gold Equities are on the Move, Under the Radar Gold mining equities, despite their recent outperformance, are being ignored by most investors. This creates a value opportunity. My colleague John Hathaway, Senior Portfolio Manager, summed up this dilemma best in his recent interview with Jim Grant: “As for gold-mining shares, John Hathaway, co-portfolio manager of the $1 billion-plus Sprott Gold Equity Fund, reports that interest is exactly nil. The Sprott bullion business is jumping, but not the mining-stock investment business….gold shares, in relation to bullion, are the cheapest they’ve been in his 20 years in the business: ‘What … Continue reading

Your Best Opportunity For Wealth Creation

You can call me lucky if you want, I don’t care. I am only out to become wealthy in the next two years. If you choose to sit out this coming rally you will have no one to blame but yourself, but don’t tell your spouse as they will  surely disown you, if you miss this opportunity. This is Dudley Pierce Baker, the editor of and and I believe we are on the verge of a major move up in the resource sector. Timing is everything in the markets and the timing seems to be on our side for resource investors. The next two years are being talked about now by several newsletter writers and even by Jim Cramer (CNBC) as an excellent time to being investing in the precious resource sector. In a few years, some investors will think they are smart as heck when if fact they are just lucky to have been invested in the resource sector at this particular time. So, timing will prove the expression correct, that ‘it is better to be lucky than to be smart’. The important take away for you as an investor is that the stage has been set (bottoms are in and bases built) and the next two years may well present investors with an explosive rally in silver, gold, copper and possibly uranium. Simon Constable writing for, Why It’s a Good Time to Invest in Copper has an interview with Jim Cramer on Freeport-McMoRan: Prices Are Exploding.

 I … Continue reading

The Base Metal Breakout

  The Base Metal Breakout – Industrial Commodities Threaten Their Decade-Long Downtrend By Sam Broom Summary: * Base metals are showing signs of real strength, with prices across the complex breaking out, or threatening to do so. * Copper and zinc have looked the strongest of the bunch and both have recently broke out of multi-month consolidation patterns. * The moves we are seeing have the hallmarks of a supply (destruction) driven rally, which tend to be sharp and ferocious in nature. * An industry-wide decline in reserve quantity (depletion) and quality (grade), accompanied with a complete lack of new discoveries means we believe we’re likely to see an increase in M&A as prices begin to rise, which is why we’re interested in quality exploration and development stage plays. Every now and then you get a feeling that the market is sending a message. Last week was one of those weeks as we witnessed a whole host of commodities either breaking out of multi-month consolidation patterns, or seriously threatening to do so. The topside moves were generally spread across the commodity complex, but by far the most significant moves were seen in the base metals where we witnessed breakouts across the board, some in rather spectacular fashion. From a higher level, this is best shown in a chart of the Bloomberg Industrial Metal Index, which has now broken out above a down trend that has been in place since the index peaked way back in 2007, over a decade ago. … Continue reading

Contrarian investor Rick Rule shares his winning strategies

Published by Resource World on July 5, 2017 Interview by Ellsworth Dickson As attendees of resource investor conferences know, Rick Rule, President and CEO of Sprott U.S. Holdings Inc., often speaks to standing room only crowds. His dynamic presentations usually go against the grain of the usual ways of looking at mining stocks. Resource World was fortunate to catch him for this interview as he is often on the road. RESOURCE WORLD: When you were attending the University of British Columbia, did you have a plan laid out for your career? RICK RULE: Yes – but I didn’t follow it. I wanted to become a taxation lawyer focused on natural resources. RW: Weren’t you studying mineral economics there? RR:         My interest was natural resource finance in mineral economics but I was in the faculty of commerce. My view was that UBC had a compound degree that gave you a Bachelor of Commerce and a law degree and so my initial idea was to become a lawyer specializing in international natural resource taxation. RW: What was your first job related to the resource sector? RR:         I had substantial success as a speculator. Owning a bar in the financial district of down-town Vancouver gave me unparalleled access to information. Building on that success, I became securities licensed. RW: I’ve heard you say to your audiences at presentations: “Be a contrarian or a victim.” Can you outline your contrarian philosophy and how investors can make it work for them? RR:         Absolutely! There’s no … Continue reading

Vancouver Conference – Frank Holmes – Rick Rule – Articles

First, a special thanks to Bob Moriarty of for sharing with his readership, The Stock Warrant Handbook. In my opinion, the recent Cambridge House Writers Conference in Vancouver was a huge success. I would estimate over 1,000 investors attended the two day event with many of the newsletter writers in attendance. It was great to get to visit one-on-one with Rick Rule and Frank Holmes. As well as conversations with Brent Cook, Nick Hodge, Mickey Fulp, David Morgan, Joe Martin, Greg McCoach, Ellis Martin and others. I had dinner one night with a group hosted by John-Mark Staude, President of Riverside Resources, TSXV:RRI. The tone of the conference was very positive and most are of the view that the next few years should be very favorable to our resource sector. I also took the opportunity while in Vancouver to visit with representatives of and both companies which I use their services to assist me with my services. So as an investor, ‘what are you going to do’? As a contrarian, this is obviously the time to be investing in the resource sector and the Dow and S&P 500 continue to trade near highs. My preference is to ‘play this game’ with the junior mining shares and/or stock warrants. However, many investors are finding great opportunities with warrants on the U.S. stocks in other sectors, biotechs, pharmaceuticals, banking, etc. Remember that only 25% or so of my personal portfolio is in stock warrants, the balance are common shares … Continue reading

Ellis Martin Report with Sprott Global’s Rick Rule

Published on Mar 28, 2017 Ellis Martin speaks with Rick Rule, President and CEO of Sprott U.S. Holdings Inc. about the Trump Bump and its real merit in the market, Are we overdue for a severe retraction? Is this the beginning of the biggest bull run for gold ever? Who is now the biggest potential market for gold? Many questions and some very good answers with this exclusive interview. Join Rick Rule, James Rickards and Trey Reik for a web conference April 4, 2017 at 4pm Easer This segment is sponsored by MInes and Money Asia, Sprott Global and The Ellis Martin Report. … Continue reading

This Will Be The Catalyst For Higher Gold Prices – Rick Rule | Kitco News

Published on Oct 3, 2016 With gold prices wavering ahead of the U.S. election and a potential interest rate hike by the end of the year, investors are trying to decipher where the metal is headed next; according to famed investor Rick Rule, bullion is moving higher. “The catalyst for it going higher is simple: zero interest rates and negative interest rates,” the chairman of Sprott U.S. Holdings told Kitco News at the Mines & Money event. “Frankly, I think interest rates will be more important to the gold market than either Clinton or Trump.” He noted that the Fed is “trapped” and continues to be “addicted” to low rates, which will bode well for gold. … Continue reading

Rick Rule: I Am Too Wise To Call A Bottom In Mining

POSTED ON OCTOBER 26, 2015 BY COLLIN KETTELL Is the bottom in? Rick has seen too many cycles to answer a question like that. Despite the many claims, truth is, nobody knows yet. But his previous call for a potential capitulation in October is likely off the table. Mr. Rule has dedicated his entire adult life to many aspects of natural resources securities investing. In addition, to the knowledge and experience gained in a long, successful and focused career, he has a worldwide network of contacts in the natural resource and finance worlds. As Chairman of Sprott US Holdings, Mr. Rule leads a team of earth science and finance professionals who are experienced with resource investment management. Talking points of this week’s interview – • Is there more upside or downside? • How a US dollar rally will impact the latest rally in miners? • What type of move off the bottom is indicative of a bull market? • Silver or gold as a speculation? • An update on the Sprott offer for Central Gold Trust. … Continue reading

Gold War: China’s SECOND Announcement of More Gold Reserves – Bullion Bulls Canada

By Jeff Nielson    August 17, 2015 China is angry (at the West) that much is clear. China has now made a series of “shocking” announcements, and made dramatic moves with its economy, two acts which are totally atypical of the general approach from Beijing. China generally acts in a very discrete, understated manner, which does notattract attention to its policies, both political and economic. The source of its anger is easy enough to identify, the economic terrorism perpetrated against its economy by Western bankers, and discussed previously. What is far less easy to discern is its precise intent in making these overt and (for China) bold moves. In other words; China is “sending a message”. The task for the Alternative media is to decipher that message. A review of recent events is necessary, as this chain grows longer and longer: 1) China makes a voluntary disclosure of an additional 600 tonnes of gold as part of its official reserves. The announcement was generally considered “surprising”, and some commentators have suggested this was a provocative gesture directed at the West (or more properly, retaliation for the terrorism referred to above). 2) China “suspends” the trading accounts of dozens of U.S. traders, in relation to the (extremely suspicious) bubble-and-crash in China’s stock market. It publicly announces it is investigating these traders for “manipulating” China’s stock market (illegally) using the banksters’ infamous computerized trading algorithms – the same abomination/crime which has been regularly discussed in previous commentaries. 3) China makes a “shocking” announcement of an official devaluation of the renminbi … Continue reading

Rick Rule: “We Haven’t Seen Capitulation In Natural Resources Yet”

Thursday, February 12, 2015 Tekoa Da Silva >>Interview with Rick Rule (MP3) During a period of polarizing precious metals and industrial commodity pricing, Rick Rule, Chairman of Sprott U.S. Holdings was kind enough to share a few comments—opining on global counterparty risk, resource capital markets, capitulation, and more. When I asked for his expectation of a final capitulation sell-off in resource markets, Rick noted that, “We came close last October. There were some moments of absolute panic…but we didn’t follow through with a capitulation… Capitulation usually follows a protracted period of diminished volume… [and] I have never seen a bear market in the juniors end without [one].” “[But] just because I haven’t seen it doesn’t mean it has to be that way,” he further added. Opportunities found at the extreme lows of capitulation, “[Are[ truly stupendous,” Rick explained. “I remember in the summer of 2000 that some stocks declined from $4.00 to $.40 cents, and were going ‘no bid’—changing hands at $.07 or $.08 cents…That’s what happens at the end of a capitulation, because every last available seller is gone.” Commenting on tightening resource capital market availability, Rick said, “The cost of capital for commodity producers is high and is going higher… [credit markets are] more constrained than at any time in my career [with exception of the early 80s]… [and] I think you’re going to see – and I’m putting it mildly – a very interesting market in oil and gas-related junk debt for the first six months of 2015.” Here are his full interview comments … Continue reading