Today one of the wealthiest, street-smart professionals in the markets, who is also business partners with billionaire Eric Sprott, told King World News that the gold and silver markets are setting up for a historic worldwide mania.
Rick Rule: “Eric, at age 62 this is my fifth natural resource up-cycle and it will be my last. I can tell you that in my experience the length and the severity of the down-cycle is the determinant of the up-cycle, and by that measure this up-cycle should be one for the history books….
“A lot of people measure the down-cycle that we’ve been in since 2011. My suspicion is that the global financial crisis and the subsequent rebound have masked a down-cycle that’s probably already 6 or 7 years old. And the fact that the TSX-V (Canadian Stock Exchange) has fallen by 83 percent in nominal terms and 90 percent in real terms tells you something about the probable rebound.
Fortunes Will Be Made
The truth is that in all the prior cycles the money that I had invested in the market went up 10-fold in the rebound. The difference today is that I have much more money to work with and a much stronger team at Sprott. And I would suggest to you, Eric, that the KWN readers who maintain the cash and the courage to be involved through this down-cycle and into the up-cycle will be similarly rewarded.
What I don’t know is exactly when this up-cycle will begin in earnest. Make no mistake about it, I think we are already in the early stages of the up-cycle, but you will remember, Eric, that the last up-cycle, beginning in July of 2000, didn’t feel apparent to most of the market in 2002.
Coming Mania In Gold And Silver Will Be Epic
You will also remember that anybody who got shaken out in the period from 2000 – 2002, missed the market between 2002 – 2006, and that was an epic move by any imagination. And my suspicion is that when this up-market gets going in earnest in the gold and silver sector, it too will be epic by anybody’s imagination.”
Eric King: “Will this up-cycle eclipse the 1970s mania in the gold market?”
Rick Rule: “The bull market in gold will be global this time around. Meaning China, India and other big gold-buying countries will be involved in the mania. Also, the Western countries are in substantially worse shape today in terms of dealing with the problems that we find ourselves in. So you have two strong reasons why this market could eclipse the mania that we saw in the gold and silver markets from 1976 – 1980.”
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