Massive Gold, Silver, and Commodities Bull Market Incoming: Rick Rule
- Cambridge House International Inc.
Massive Gold, Silver, and Commodities Bull Market Incoming: Rick Rule In this video, Rick Rule talks about the coming bull market in the precious metals sector and explains how investors can expect profits of 180 – 1200%! Here is a synopsis of Ricks talk: “In the resource business you are either a contrarian or a victim.” – Rick Rule The precious metals market is coming off the worst bear market in history. Which could lead to one of the best bull markets in history. Currently, precious metals are in a bull market and precious metal equities will be in a bull market soon.
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The Barrons gold mining index chart – the longest running chart that shows how wildly cyclical that bull markets have been is a great indicator of what might be to come. The gold market recovery can be massive and we are at, approaching or just off the bottom of the bear market. Where the risk/reward is at its highest. And the recovery from these bottoms will be and has always been spectacular. The returns don’t lie. The fact is, Gold Bullion responds most to a lack of faith in the ongoing purchasing power of various fiat currencies over time. The most important being the US dollar. And Gold responds to real interest rates. The interest rate after the depreciation of the currency. The federal reserve is offering 180 point basis yield which is depreciating by 1.6% per year. And with a 20 basis point real yield bond over 10 years these assets are essentially a return free risk. And the primary rival of gold is the proportion of return free risk.
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Looking beyond the yield to the quality of the credit and determining that is not very strong will be an important factor as the value of the dollar will diminish. The governments on balance sheet liabilities are massive but the off balance sheet liabilities are even larger and exceed @100 trillion dollars. With $120 trillion dollars in total debt, the United States is poised for a large bear market which will spark a precious metals mega bull market. This debt obligation doesn’t include state and local debts. It also doesn’t include underfunded pension funds. To service the debt, the United States uses the national income. Which itself is at a $1.4 trillion dollar deficit. Only Modern monetary theory (counterfeiting) can add negative numbers and come up with a positive number. The debt and the ability to service the debt is going to create a massive gold bull market. And Quantitative easing means we are going to continue to print money. Which in turn will devalue the dollar and send the price of gold and other precious metals and commodities soaring. The writing is on the wall for gold. Commodities against equities are at a 100 year low. Commodity bull market is coming as well.
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