Gold and Oil in a Post-Coronavirus World

Published on
April 23rd, 2020
Duration
39 minutes


Gold and Oil in a Post-Coronavirus World

The Expert View ·
Featuring Rick Rule

Published on: April 23rd, 2020 • Duration: 39 minutes

Rick Rule, president and CEO of Sprott US Holdings Inc., joins Real Vision to break down the current state of gold and gold equities markets in the context of coronavirus shutdowns. He explains the investment opportunity he sees in gold bullion, gold equities, and gold royalties firms. Rule provides two immensely important charts to explain his view that precious metals markets have already entered a new bull market with huge upside. Rule shares his thoughts on the recent chaos in oil markets and puts commodities markets like gold and oil into historical context to help investors understand where markets are heading. Filmed April 21, 2020.

Comments

Transcript

  • TB
    Tad B.
    17 May 2020 @ 11:22
    Notwithstanding the expected, and reasonably obvious, imminent rise in PMs I am unsure exactly how an indebted and extremely recession/depression-hit global economy with less demand bodes well for base metals & energy stocks in general, in the coming 4-6 years. Fewer players and less production has an impact but low demand & consumption also does. I'm a PM bull and I also believe the uranium price will have to rise (along with the shares of the producers) but I can't quite get my head around a 'rip your face off' rally in commodities in general against a backdrop of lower demand & consumption. Am I missing something ?
  • MA
    Muhammad A.
    24 April 2020 @ 22:37
    Good interview - I am UK based, does anyone know a cost effective way of investing in physical gold without the hassle of storage to preserve one’s wealth from the coming £ GBP devaluation as this country goes ahead with printing billions of £s in the coming months- many thanks
    • JS
      John S.
      25 April 2020 @ 22:37
      Goldmoney.com
    • dp
      david p.
      26 April 2020 @ 02:15
      jewelry
    • dp
      david p.
      26 April 2020 @ 02:16
      remember, if you don't hold it, you don't own it (especially when markets are closed)
    • MA
      Muhammad A.
      26 April 2020 @ 15:11
      Thank you John about the Goldmoney.com recommendation - has anyone used their services and how do customers rate them?
    • FD
      Fausto D.
      26 April 2020 @ 16:35
      I use Goldmoney personally and have been using them for around 2 years. No complaints. Have not tried their physical delivery through Shiff Gold but rather chosen to store my Au, Ag and Pt in their vaults in London, Zurich and Toronto.
    • ef
      eric f.
      26 April 2020 @ 19:34
      https://kinesis.money/
    • WM
      Will M.
      27 April 2020 @ 04:15
      Might want to consider Sprott gold or silver ETF which have solid allocated storage shares.
    • JB
      James B.
      27 April 2020 @ 15:06
      D-GLD through blockchain.info - I'm sure the founder did a RV interview a year or so back. Could be wrong but sounds like a gold ETF but they use the blockchain to individually segregate your gold, inside a swiss bullion bank
    • ML
      M L.
      27 April 2020 @ 20:55
      BullionVault.com
    • TB
      Tad B.
      16 May 2020 @ 19:04
      I'm in the UK too... had this same conundrum 5 years ago and here's what I came up with: BullionRock.com Dealers & storage facility in Guernsey. Fully allocated, not pooled. Nice people. No Vat on Silver if left there. 'XGLS' X-Trackers Physical Gold Hedged GBP (etf) 'PHYS.U' Sprott Physical Gold Trust (etf) Redeemable in metal ...... unlike GLD. They do a Silver one too. GDX, GDXJ, SIL, SILJ Gold & Silver senior & junior producer etfs... may have to get them offshore now (new KIIDS nonsense rules). You can get them through BullionRock's trading desk if you want. BIT-XBT etf is also a decent way to hold bitcoin without having to learn anything or be a nerd. Swedish BitCoin tracker fund in SEK (they do a EURO one too). Unfortunately GYEN was closed down..... (Long Gold / Short JPY etf). Still looking for an equivalent. Someway of doing the same against HKD would be good too.... Good luck.
  • EH
    Eric H.
    5 May 2020 @ 02:25
    Incredible interview of a true legend. Do you think the extreme events occurring in markets currently could potentially pull forward his timeline of the “rip your face off” commodities rally likely several years away, including uranium?
  • IP
    Ivo P.
    3 May 2020 @ 06:51
    Another "golden" piece of content (pardon the pun). Rick is surely the dorkiest, most intelligent, eloquent, and lovable figure in the precious metals/commodities space.
  • RG
    Rob G.
    30 April 2020 @ 07:43
    Fantastic interview thank you. Does Rick have a view on the AUD Gold price?
  • WM
    Will M.
    27 April 2020 @ 04:20
    Very good segment yet again from Rick. History repeats and this time gold will soar and miners with it. Bitcoin is a speculation, but I may buy my first small allocation in coming weeks.
  • TZ
    Tibor Z.
    25 April 2020 @ 12:25
    Am I the only one who expects the gold miners to fall significantly with the rest of the stock market? Of course we will see than rebounding gold miners like no tomorrow.
    • FF
      Frederic F.
      25 April 2020 @ 13:50
      Didn't that already happen in late March (big drop and big rebound)?
    • AO
      Alex O.
      25 April 2020 @ 14:30
      I do too. Second wave of virus and loss of BTFD mentality means directly correlated sell off all assets except Raoul’s favorites.
    • JQ
      James Q.
      26 April 2020 @ 22:25
      Gold will fall when the Fed steps back from QE infinity to conduct yield curve control under operation twist mk2. Everyone who bought gold thinking they will print nonstop forever could be caught out.
    • WM
      Will M.
      27 April 2020 @ 04:18
      James the FED are trapped, they have no choice but to “print”, you are living in a different planet my friend. The world has changed and any gold pullbacks will be temporary ( but potentially frightening).
  • WT
    William T.
    23 April 2020 @ 23:37
    Did RV say something about recommending a place to buy and store gold ? Perhaps my memory is faulty or I dreamed it . :)
    • MH
      Michael H.
      24 April 2020 @ 02:03
      Yes Raoul said they were working on something like that.
    • DK
      D K.
      24 April 2020 @ 04:46
      FWIW had great service from Golden Eagle Coin in the past.
    • BB
      Bullionaire B.
      24 April 2020 @ 16:03
      You can bet it will be SWP on the Cayman Islands and for people who live in bad tax heavy jurisdictions where bullion dealers cannot deliver direct to, it may be a solid choice for a % of your PM bullion position. Not all though, never put everything in one basket folks. Especially when a dealer storing is also dealing (conflict of interest).
    • BM
      Bryan M.
      25 April 2020 @ 05:37
      Check out Border Gold In B.C., Canada. They are just north of Seattle (close to the border) and I believe they will also store. Find'em on Google.
    • MK
      Michael K.
      26 April 2020 @ 03:19
      Goldmoney.com and apmex have both served me well
    • WM
      Will M.
      27 April 2020 @ 04:12
      Yes I am with SWP in Cayman and Safewealth in Switzerland. Latter is very efficient and safe and great prices low mark ups but it is expensive for storage.
  • CT
    Crispim T.
    23 April 2020 @ 21:40
    Bitcoin (BTC) killed gold.
    • GF
      Gordon F.
      23 April 2020 @ 22:52
      Maybe. But I own both. And I expect both to appreciate dramatically in the next year or two. But why take an either/or attitude? Diversification is because the future is uncertain, and when we become dogmatic about what will or won't work, we tend to miss out on a lot of opportunities.
    • SS
      Shanthi S.
      24 April 2020 @ 01:35
      I love BTC, but... lol!
    • AR
      Amber R.
      24 April 2020 @ 15:38
      There's always one lol Enjoy your "digital gold" that failed to rally to Fed rate cuts, is correlated to equities and was a worse store of wealth during this last historic crash.
    • BB
      Bullionaire B.
      24 April 2020 @ 16:23
      Nice nonsense. The BIS' Money Flower illustrations tell anyone paying attention that GOLD BULLION remains source for all flawed manmade monies which follow. Only physical gold for LT reserves gets bought by CBs, they do so knowing theirs (and other private currency proxies) will again fail, hence the GOLD BULLION to start anew. It is CBDC direct issued MMT style, which will be the next layer to bypass the $USD's exorbitant privilege and give sovereign states more control and flexibility on internal currency supplies, etc. BTC is sideshow speculation that could ramp to $1 million or fraud to 0. BTC bet only what you can afford to outright lose. Hardly anyone bullish on it knows its code full stop, nor how truly corrupt its price discovery really is. Gold Bullion is the surer LT smart money bet. Allocate wisely.
    • WM
      Will M.
      27 April 2020 @ 04:08
      ........eh...Not!
  • aD
    amol D.
    26 April 2020 @ 20:55
    Always great to hear Rick Rule's measured timelines as opposed to the gold bugs where if things didn't happen then it must have been manipulated.
  • OK
    Oliver K.
    26 April 2020 @ 18:48
    Rick rules
  • JP
    John P.
    26 April 2020 @ 15:09
    Thanks. The many years of knowledge and perspective is very helpful.
  • SG
    Satvinder G.
    25 April 2020 @ 23:07
    I’ve been listening to Rick Rule for many years, his expertise with PM’s and miners is hard to be challenged. I would love to hear his view on silver and silver miners. Please bring him back on 🙏🏽
    • JL
      James L.
      26 April 2020 @ 14:14
      check out sprott media channel on youtube
  • NL
    Nick L.
    26 April 2020 @ 09:18
    Great info from Rick - and very clearly explained! Really enjoyed and would like to see him again.
  • SS
    Shanthi S.
    24 April 2020 @ 02:08
    I don’t know why anyone would want a gold or BTC standard. A totally free market in money is preferable to any enforced standard. No need for it... let the best currencies jostle and rise to the top naturally. Our predicament is that no government will ever submit to this, as government power depends entirely on the implicit threat of violence which backs their currencies (even if the currency is gold). Government has no power or relevance in a world where it has no monopoly on violence. And as long as there are masochistic statists out there, they’ll be gangs called governments effing with whatever we call money. As the state becomes more monstrous, I’m arbitraging vestigial freedoms via BTC, gold and other hard assets, but hoping for a day when Wealth preservation & investing are again something other than front running the gang with the most guns.
    • PP
      Patrick P.
      26 April 2020 @ 03:26
      It's the human race or a trip to outer space...it's your choice.
  • CB
    Chris B.
    25 April 2020 @ 22:15
    As always, clear and well articulated views by Rick Rule. Thanks RV and Rick.
  • MT
    Mark T.
    23 April 2020 @ 17:59
    When Rick Rule speaks, I listen.
    • PS
      Prashant S.
      25 April 2020 @ 18:13
      .type tr to the type to try toUttar EYes TV
  • RD
    Randy D.
    24 April 2020 @ 14:54
    RV editor: please leave the charts up for a longer duration
    • MM
      Monies M.
      24 April 2020 @ 15:11
      Pause the video..
    • AO
      Alex O.
      25 April 2020 @ 14:31
      Randy check the transcript.
  • OS
    Oliver S.
    24 April 2020 @ 20:01
    I would be interested in more comment on gold confiscation.
    • AC
      Andrew C.
      25 April 2020 @ 08:19
      MacroVoices discussed a couple of weeks back. Basically impossible now, only worked last time because of the peg of USD to gold. (From my understanding)
  • TT
    Thomas T.
    23 April 2020 @ 17:30
    Excellent interview. I am in the camp that gold and gold miners will do well going forward. My question is timing of this as it relates to Raoul’s thesis of an upcoming deflationary environment. Which comes first?
    • YP
      Yash P.
      23 April 2020 @ 21:22
      Deflation first, but I think gold has the potential to rally even through deflation because there would be a mistrust in the fiat system
    • CW
      Chris W.
      23 April 2020 @ 21:38
      My understanding is that we see gold + gold miners perform very well in the next 6 months. Then, Raoul's dollar thesis comes into play and the market will see a deflationary reversal. During this reversal, all asset classes fall except for US Dollars. We will see the broader equity market perform a large correction. It would be best to exit all trades and go long US Dollars before that collapse. Afterwards, enter back into gold + gold miners for the rest of the commodity bull market (5-10 years).
    • BM
      Bryan M.
      25 April 2020 @ 05:44
      Well said Chris.
  • SW
    Scott W.
    23 April 2020 @ 23:20
    If past is prologue bull markets are the authors of bear markets and bear markets are the authors of bull markets and I like to invest in when propositions not if propositions! ;) RR is the bomb. I've memorized his talking points.
    • BM
      Bryan M.
      25 April 2020 @ 05:40
      LOL...and always remember this Scott; the cure for low prices is low prices while the cure for high prices is...high prices. Ya gotta love'em!
  • TS
    Thomas S.
    24 April 2020 @ 23:09
    Fantastic.
  • OS
    Oliver S.
    24 April 2020 @ 20:01
    I always learn so much from Rick's input. Thanks Rick and RV.
  • mB
    marc B.
    24 April 2020 @ 19:48
    This guy is awesome! Happy I’m a shareholder. Excited for the massive rally in Gold!
  • NA
    Nicolaie A.
    24 April 2020 @ 10:26
    Thank you for this enlightening interview. By the way, Raoul mentioned in a video not long ago that RV was about to partner up with a bullion dealer in order to make acquisitions of physical gold simpler for its subscribers? Is there any progress on that?
    • CD
      Carl D.
      24 April 2020 @ 15:18
      Ditto on this point.
  • IH
    Ian H.
    23 April 2020 @ 10:56
    Great interview. Would love to see Ross Beaty from EQX on here.
    • JS
      John S.
      23 April 2020 @ 22:10
      He's been on in past with Grant
    • DB
      Drew B. | Real Vision
      24 April 2020 @ 13:44
      We are looking to have him on to follow up!
  • JD
    James D.
    24 April 2020 @ 09:39
    Exceptional commentary and insight. Please get Rick back again soon!
  • SS
    Shanthi S.
    24 April 2020 @ 02:54
    Awesome interview! Rick is brilliant.
  • AT
    Andrea T.
    23 April 2020 @ 17:40
    Great interview :) RV: you cover gold, you cover bitcoin, you cover oil, you cover even uranium, but you never cover silver (at least since I'm subscribed). As Rick Rule said, you need to be a contrarian, or you become a victim! :)
    • MH
      Michael H.
      24 April 2020 @ 02:05
      Yes too bad he said he was going to talk about silver equities but they never did.
  • PB
    Paul B.
    24 April 2020 @ 00:35
    12 Billion Fund...Holy shit
  • JA
    Jordan A.
    24 April 2020 @ 00:08
    Rick's a legend. Always enjoy his commentary.
  • JE
    James E.
    23 April 2020 @ 22:25
    One of the best, excellent.
  • JB
    Jim B.
    23 April 2020 @ 11:21
    The only way back to a gold standard is through bitcoin. For gold to be effective in commerce it needs government trust to not take away the peg and they have done that many times in history. Bitcoin is a bottom-up gold standard in the sense it requires no trust on governments behalf to maintain the peg. That's if they would ever go back to sound money and bitcoin is not a currency at least not yet until it stabilises its volatility which could take 20 years
    • RR
      Ronald R.
      23 April 2020 @ 21:42
      This is my worry, If governments want to stomp on bitcoin they will. Trust me they will i.e. you go to jail if you hold it. Gold on the other hand is more controllable than bitcoin, so if they are pushed and they have no other alternative they will move to gold to back the financial system. This will be the last option for them though.
  • dg
    daniel g.
    23 April 2020 @ 21:06
    just sold my sprott stock today lol...up 50% in that trade, and upon correction I'll be back!
  • SH
    Sahil H.
    23 April 2020 @ 10:35
    It's really interesting the way he described the flow of liquidity during a gold bull market. I see a lot of similarities between that and how liquidity has flown in crypto during its bull markets; particularly If you look at the last halving event. By in large, Bitcoin led the market along with other larger more well known projects that had fiat on ramps (i.e. typically more liquidity), then as the market progressed you started to see liquidity flow into medium, then small cap projects. It seemed as though the investors that made profits in BTC and other large cap coins early in the cycle moved that liquidity to medium/small caps and pumped those prices up (outside of just the ICO's). What's clear evidence of that is when you look at the Bitcoin dominance throughout the market cycle. Also looking at price action, BTC hit its ATH in mid-December 2017, whereas most alt coins peaked around mid-Jan 2018 (a full month later which is like 12 months in other markets lol). Similarly the lower cap coins where the ones that moved the most % in the shortest period of time, just as he described with the small cap gold miners. I assumed this was the case because there was still a serious lack of infrastructure during the last crypto bull market which meant capital had to flow in and out of the market through the same channels. Is this similarity just with gold or is there some well established known market dynamics with regards to the flow of liquidity during market cycles?
    • BM
      Bernhard M.
      23 April 2020 @ 20:04
      Interesting observation. I think it is correlated to human psychology and depends on how educated investors are. Smart money positions itself at the beginning and prefers liquid large caps (Royalty Companies or Bitcoin) In the last quarter of the cycle retail fomos in and chases the missed profits and buys shady, liquid explorers / small cap altcois which leads to a blow off top. Rinse and repeat.
  • MO
    Mathias O.
    23 April 2020 @ 19:49
    rick the ruler!!
  • je
    james e.
    23 April 2020 @ 19:44
    Excellent. So well spoken and articulate in expressing his views and the rationale behind them.
  • JW
    JW2 W.
    23 April 2020 @ 18:38
    Such a privilege to benefit from Rick’s extensive experience and insights,
  • WW
    Will W.
    23 April 2020 @ 18:17
    Great interview - laid out the bullish tailwinds for bullion and gold stocks, but realistic in terms of the role gold will play moving forward in an uncertain future.
  • bm
    brian m.
    23 April 2020 @ 07:06
    That music is horrendous.
    • TM
      The-First-James M.
      23 April 2020 @ 17:33
      The thumbs don't agree with you. ;)
  • OM
    Owen M.
    23 April 2020 @ 15:43
    RR is a legend!
  • PC
    Paul C.
    23 April 2020 @ 14:06
    Great interview. Plenty to listen to, digest and action if desired. I may have to top up my physical...
  • PG
    Pieter G.
    23 April 2020 @ 13:55
    Great video; full of useful info and very well articulated and structured. Thumbs up for Rick Rule!
  • BD
    Ben D.
    23 April 2020 @ 11:11
    Great interview with Rick Rule. Really enjoyed the way Rick explained how capital flows act during bear and bull markets. Hope to have him on again on RV to explain more of his thoughts and his ideas.
  • SG
    Sven G.
    23 April 2020 @ 10:34
    Rick tells it like it is... great to hear the clear, concise thoughts of someone who knows what he is talking about. Thanks Rick!
  • NM
    Nicholas M.
    23 April 2020 @ 10:07
    Fantastic video as always, keep up the great work Rick!
  • PB
    Pieter B.
    23 April 2020 @ 05:52
    Rick Rule is THE man in the resource sector! Thanks a lot!