Where to Use Speculation vs. Value Investing

Stijn Schmitz welcomes Rick Rule to the show. Rick Rule is Investor, Speculator, Founder & CEO of Rule Investment Media. In this comprehensive discussion, Rule provides deep insights into commodity markets, focusing on gold, oil, and various other resources. Regarding gold, Rick believes the precious metal is positioned for significant growth over the next five to ten years. He anticipates a potential 75% decline in the US dollar’s purchasing power, which could translate to a three-fold increase in gold’s nominal price. Rule emphasizes that while gold’s trajectory won’t be a smooth ascent, investors should be prepared for volatility and cyclical movements.

In the energy sector, Rule is particularly bullish on oil and gas. He argues that despite narratives about alternative energy, fossil fuels will remain the dominant global energy source for decades. He sees tremendous value in companies like Exxon, which he believes is trading at a 50% discount to its net present value. Rule suggests that the industry’s ongoing infrastructure investments and technological advancements make oil and gas an attractive investment opportunity.

Rule also shares perspectives on various commodities, including nickel, copper, zinc, and uranium. He highlights the significant underinvestment in these sectors over the past decades, which creates potential long-term investment opportunities. For instance, he sees a substantial copper supply deficit emerging in the next five years due to decades of underinvestment.

Beyond commodities, Rule discusses his involvement with Rule Investment Media and Battle Bank, offering investors resources to analyze natural resource stocks and providing innovative banking services. He encourages investors to conduct thorough research, be patient, and look for opportunities in sectors experiencing market disfavor.

Timestamps:
00:00:00 – Introduction
00:00:42 – Gold Market Outlook
00:03:40 – 1970s Gold Parallel
00:06:00 – US Debt Liabilities
00:06:21 – Profit Taking Strategies
00:08:36 – Private Placement Insights
00:12:22 – Gold Bull Volatility
00:16:27 – Lagging Commodities Review
00:18:58 – Oil Gas Opportunities
00:26:38 – Mining vs Oil Differences
00:32:41 – Iron Ore Valuation
00:35:47 – Nickel Market Dynamics
00:41:46 – Copper Supply Deficit
00:48:41 – Uranium Term Pricing
00:51:36 – Concluding Thoughts

Guest Links:
X: https://x.com/@realrickrule
Website: https://ruleinvestmentmedia.com
YouTube: https://www.youtube.com/@RuleInvestmentMedia
Classroom: https://ruleclassroom.com

Rick Rule has dedicated his entire adult life to many aspects of natural resources securities investing. Besides the knowledge and experience gained in a long and focused career, he has a global network of contacts in the natural resources and finance sectors.

Mr. Rule is a frequent speaker at industry conferences and is regularly interviewed for radio, television, print, and online media outlets concerning natural resources investment and industry topics. Prominent natural resources-oriented newsletters and advisories frequently quote him. Mr. Rule and his team have expertise in many resource sectors, including agriculture, alternative energy, forestry, oil and gas, mining, and water.