Rick Rule Symposium 2022youtu.be
Gold has seen ups and downs this summer, but is solidly below its Q1 peak of over US$2,000 per ounce.
Speaking to the Investing News Network at the Rule Symposium in Florida, Rick Rule, the host of the event and proprietor at Rule Investment Media, said he sees the lack of interest in the yellow metal as positive.
“The fact that people are disinterested in gold, and disinterested in resources, I think is a wonderful thing because they’re on sale,” he explained, reminding listeners that he favors a contrarian approach to the markets.
Rule has often said that the most important gold price determinants are US dollar strength or weakness, along with real interest rates, and he reiterated that opinion at the event.
“A circumstance like this where the US dollar is strong and gold is relatively strong has only happened twice before in my career, and that’s been very bullish for gold,” he said about the current situation.
Speaking more about the US dollar, Rule suggested that the strength it’s been enjoying has strings attached.
“I suspect that the strength that you see in the dollar is really not so much of a function of the strength in the US economy — certainly not a function of the US government balance sheet — but rather a sign of the comparative weakness of other currencies,” he explained. “In other words, the US dollar is doing well in a vacuum.”
Aside from gold, Rule weighed in on uranium, saying he’s “back to solidly bullish.”
Looking back on his recent uranium commentary, Rule noted that three years ago he described the space as a “no brainer.” However, the market bloomed more quickly than he expected, and the uranium juniors got ahead of themselves — that left him bullish on the material, but bearish on the stocks.
“The material now is really, truly on the runway,” he said, pointing in particular to Japanese public opinion on nuclear energy. “The consequence of that is that the necessary precondition for a higher uranium price, which is Japanese restarts, isn’t something that’s going to occur in the future, it’s something that’s happening right now.”
Watch the interview above for more from Rule, and click here for the full Rule Symposium playlist on YouTube.
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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.
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