When Rick Rule pairs lower grades, labor strife and inefficient mines with the relentless demand for platinum and palladium, his result is an investment thesis that could pay off for bullion and equity investors. In his Metals Report interview, the founder and chairman of Sprott Global Resource Investments Ltd. compares the current platinum and palladium space to the uranium sector 10 years ago, and predicts handsome returns for investors willing to shoulder the risk. [Read more...]
While we remain more bullish on both silver and gold at SD as we believe the economic downturn will intensify as 2013 progresses, we do hold a minor portion of our assets in physical platinum and palladium as a way of having some diversification of physical assets. Sprott’s Rick Rule makes the case for platinum and palladium amidst S. Africa’s mining crisis:
Sprott’s Rick Rule talks about a few 100 baggers of his own and whether he achieved such returns through his own skills or just dumb luck. We also discuss dealing with the tough times, the coming water crisis, and whether it’s time to sell gold & silver and start buying platinum and palladium. [Read more...]
In this unique discussion, precious metals experts Eric Sprott, John Embry and Rick Rule discuss a wide range of topics related to precious metals investing including macro economic issues, expanding central bank balance sheets, and the role of precious metals in protecting your purchasing power. A detailed analysis of the gold, silver and platinum/palladium markets, and a Q&A session round out this great discussion.
For those who missed last week’s live round table discussion of precious metals with Eric Sprott, John Embry, & Rick Rule, the full MUST LISTEN discussion is below: [Read more...]
Sprott’s Rick Rule to CNBC: If You Think Your Wife’s Ring is Supply, Ask Her. You’ll Find Out it Isn’t!
While Eric Sprott was speaking with The Doc this morning, Sprott’s Rick Rule was on CNBC discussing gold, silver, platinum, and palladium in the midst of the latest cartel raid on the metals.
While Rule’s entire interview is a MUST WATCH, the below clip was an absolutely classic response to CNBC’s claims that jewelry recycling will prove to bring massive supplies to the market:
In terms of gold and silver with supply, you have to think about historically mine supplies, but there are no substantial inventories of platinum and palladium. It has gone up a smokestack, it has gone out a tailpipe or been turned into jewelry. If you think your wife’s ring is supply, ask her. You’ll find out it isn’t.
When asked which precious metal Rule would recommend owning he responded: I would own the whole bullion suite.
Rule’s full interview is below: [Read more...]
As most of our readers are aware, our friends at Sprott Asset Management recently launched physical platinum and palladium bullion trusts out of expectations that the metals will see substantial gains over the next decade over major supply issues.
With both platinum & palladium soaring over the past few weeks, Sprott has released a MUST READ summary of the platinum and palladium markets (Sprott compares both metals to the uranium market in 2003), and why they believe the physical metal will outperform the mining companies.
Despite being long-time precious metals enthusiasts and active investors in gold and silver, we did not focus on “the other precious metals”, platinum or palladium, until very recently. Our interest in the space was ignited by a client’s request to assess investment opportunities in the debt and equity of Platinum Group Metal (PGM) mining companies – an exercise that came up almost completely dry. As long-time resource equity investors, we are familiar with the mining industry’s supply/demand cyclicality and the impact it has on commodity prices. Looking more closely at the PGM miners, the platinum and palladium industry reminds us of the uranium industry back in 2003. Like uranium, platinum and palladium are crucial to a number of important industrial applications where demand for them is relatively inelastic to price. And like uranium in 2003, palladium is also marked by an opaque, but rapidly diminishing foreign supply stockpile, which had previously balanced out the market and effectively capped the price. [Read more...]