Good Interview with Rick Rule about Second Half 2012

[gunDriller]

He kind of hedges his bets. He says he is preparing for a crash, but that he's not predicting a crash. ?!

A la September 2008.

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/7/4_Rick_Rule_files/Rick%20Rule%207%3A4%3A2012.mp3


So he is seeing aside cash & gold to prepare for buying opportunities, including buying opportunities in junior miners.


He discusses how some stocks' valuations are event-driven (e.g. geological exploration results) as opposed to being market-driven.


The implication that he is setting aside gold implies that he will sell the gold at the time of a purchase, possibly at a depressed price (for the gold), simply because he is getting such a killer deal on the junior miner shares.

Of course, then the question is - when do you sell the gold, to finance the purchase of (sort of) distressed assets ?

[beefsteak]

Gunny,
the "when" is the crux of the matter. Takes a macro view to time the switch into/out of one form or another. I find ratios the best way to determine and assist in said switching. That's a pretty standard technique and removes alot of noise from the mouthpieces for various issues which have the power to move and/or supress in this rather illiquid sector.

Of course, it involves risk/reward ratio assessment. Wrily note, having inside information like Rick Rule does wrt G&S stocks doesn't hurt, either. He sees deals and presentations all the time, sitting pretty at Sprott like he does after several decades of doing it his way.

His basic evaluation tools developed waaaaay before joining Sprott's team, are legendary, and if you are going to play in this sector, they should be printed out and hung by your bathroom mirror so you see it every morning when shaving.

I have my eye on a couple G exploration and development small caps with the 3Ms...metal in the ground, management and money on hand and going forward. I've experienced the sweet joy of some NON-insider success in said portfolio sector in decades' past--without any input from Rick Rule. Have my toe in a couple now, after years of leaving them lie.

Just sayin'


beefsteak

[Awoke]

He says he is preparing for a crash, but that he's not predicting a crash.

No different than what most of us are doing really.