Guest Post: Rick Rule - We're Entering A Great Era For Resource Investing

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Pladizow's picture

Not one of Rick's better interviews.

ZeroPower's picture

At a first quick glance i though the title said 'Rick Roll'  :/

TheFourthStooge-ing's picture

The full transcript link redirects to the goatse site. </sarc you very much>

 

SAT 800's picture

Look up CitiGold, an australian gold mine in Queensland; google will get you the website for the company; selling for 61/2cents Aust. last year it sold for 21 cents; read all the info on the website; its perfect. About fourteen months ago the soverign wealth fund for Bahrain bought about 18% of the Company. They haven't made foolish move yet; and they didn't this time either. It's an example of an ezcellently run gold mine that has a production cost this year of about 350$; and it's being completely overlooked by the market.

golfrattt's picture

Sooooo, Resources are going to go up. Oh, forgot, they're gonna go DOWN before they go UP. Almost forgot that part...

Christ, isn't that the future path of just about EVERYTHING...??

This interview was better served if it was released 6-12 MONTHS from now..

Sudden Debt's picture

Wanna buy some high grade dirt?

I'll make you a deal!

 

walcott's picture

I am from fukishima I buy 16 tons no radioactive dirt please! Tank yu vaey vaey much!

 

Snidley Whipsnae's picture

Johnny Bravo would buy it for $5 oz... Johnny? Johnny, where are you?

TheFourthStooge-ing's picture

He's picking up loose change and netflix shares in front of a moving steam roller.

 

Atomizer's picture

I'll buy all your dirt, if you purchase my repackaged SIV. Heeheee

Animal Cracker's picture

Is the bottom of the economic pyramid really getting richer?  And will this continue?

 

 

Sudden Debt's picture

Well, there's such a thing as the bottom and foundations that go pretty deep to but of which nobody give a fuck.

stopcpdotcom's picture

"Sir Godber Evans: Don't you find this a little indulgent? Particularly in the present economic circumstances.
Dean: Oh, we never bother with "present economic circumstances".
Senior Tutor: We find that they tend to go away after fifty years or so."

"Porterhouse Blue" (1987)

High Plains Drifter's picture

some people just will never get it ..........

paratrooper325's picture

I got some oceanfront property in Az for sale Rick.But really I think that the future of trading will be in resources and commodities like grains, cattle, PMs, and land. That is just my unofficial thought and preference on what real wealth is, not this charade that we are playing not with robo algos, crooks, and the capital hill cronies. Call me old fashioned I guess.

Waterfallsparkles's picture

I feed the Deer.  Never know when you will need them.

The Big Ching-aso's picture

 

 

Well the only problem with this resource stock bonanza is that there's a dearth of greater fools who want to get screwed by insider fraudulent BS on Wall Street.   Other than that yeah it's a raging go there, Rickster.

Piranhanoia's picture

Ignoring stampeding bison in the control room of the head section,  let's try raping the environment for a fast buck.  Ignoring reality,  why not put your money into things far away from you.  Why not put that 8T in funny money to work for you somewhere it will be honored when it is found to be re, re, re re  (sounds like a little respect from Aretha) re, re hypothecated and worth less in Argentina than the $.02 it is here.  Go long uranium while the people who live on the roads to the mines  continue to allow it to pass thinking their governent knows best,  until they don't.  

This is either a joke, or Rick has some toxic assets backed up that he is trying to expel.   "Call for you Mssr. Le Petomane",  here garcon,  and call me Joe.

 

ebworthen's picture

PM stocks are on a 12 month lag behind the physical, here's to hoping they catch up.

This is very interesting:

http://www.youtube.com/watch?v=oHg5SJYRHA0

BrocilyBeef's picture

thanks... and I just wanted to learn.

ebworthen's picture

Sorry, I couldn't resist.

This one is educational, Jim Sinclair on PM's from yesterday: 

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/12/9_J...

Money Squid's picture

Pfftttt....those guys are rookies when it comes to investing. You need advice from someone who has been in the bus or a long time and has demonstrated real performance and mastery of the markets

http://www.youtube.com/watch?v=v1PBptSDIh8

Nuff said.

fbrothers's picture

People will not be buying anything. They have no jobs, no money, and are unable to refinance their home to pick up cash from equity. Shopping will not be the U.S's favorite sport. We will not need resources.

 

xela2200's picture

They will still need to eat, drink, wear cloths, etc. Most people on wellfare have a tv, microwave, xbox, and a cell phone (Silver, copper, oil).

I believe 9 billion is the current carrying capacity of the world using monoculture and energy intensive (oil). We will be there in 10 or 20 years. I expect to trade Drinking Water commodity contracts that will be trading in Frankfurt by then.

prodigious_idea's picture

True that.  After 70 years of a consumer-driven economy fueled by a real estate bubble that just popped we're in for a long slog "rebuilding".

Matto's picture

Pretty sure stocks are lagging physical because they have been issuing stock like its confetti.

Snidley Whipsnae's picture

Matto... +1. Bingo.

A mine is a hole in the ground with a liar standing next to it.

FranSix's picture

Its true.  And sometimes they don't know what they're lying about and need to be reminded.

el Gallinazo's picture

Pathetic.  Demand is not what people want.  Demand is what people want and what they can and would pay for, especially when the house of cards of phony credit money disappears into that alternate universe.

earleflorida's picture

cameco,... oh cameco - where art thou?

buried in the worlds silo's, thy kingdom come

or upon a forest edge, camouflaged as a crawling grassy knoll

oh cameco,... where out thou

Flakmeister's picture

Yep.... what a shit show... CCJ is a best-of-breed Uranium miner that has been radioactive to say the least...

Sunshine n Lollipops's picture

As soon as I get out from under the pyramid, I'm gonna look into this.

Waterfallsparkles's picture

My Friend does resource investing.  He has an Heating Oil tank farm on his property.  He has about 4 Heating Oil Tanks any where from 250 gallons to 750 gallons each.  When the price of Heating Oil goes down he fills up, usually summer.  When Oil is up he uses his stash.

DosZap's picture

Waterfallsparkles

And the EPA is not SO FAR up his ass, he doesn't feel like he has a permanent tenant in his lower intestines?.

What happens when his people spill ONE quart on Terra Firma?,I am sure he is running a risky bidness in the long run.

Glad he is doing well, best enjoy it whilst he can.

slewie the pi-rat's picture

considering the sizes of the tanks mentioned, don't be too concerned

these are just standard home units as are filled from a truck when wanted or needed;  the oil isn't rationed, you know 

yet

now, with a diesel truck & generator...welcome to TEOTWAWKI...

PaperBugsBurn's picture

Haha bitchez, got me own Au+Ag factory...I mean mine!

Collapse Amerikkka!

Fuck yeah!

spinone's picture

Mines will be nationalized for the Fatherland!

spinone's picture

This is a deflation. Value will be destroyed wherever it concentrates.

JR's picture

K Street, “The Best Government Money Can Buy?” by Davos  12.10.2011

Super FSN interview, some key points:

§  1/3rd of Congress’s time spent getting re-elected.

§  To get into DC requires having the most contributions.

§  Votes for cash.  Votes sold Tuesday-Thursday.

§  Some of these “people” are making 5 million-15 million a year.

§  A lobbyist turns every 1 dollar he/she gets into 100 dollars.

§  Arizona public property given to mining companies, votes sold for 200x conservation lobbyist spending.

§  About 14,000 lobbyists registered, probably 100,000 more who call themselves something other than a lobbyist.

Bottom line, Congress (save for a few like RP) doesn’t represent you or me.

 

Visualizing Numbers

Posted on December 9, 2011 by Davos

A while back I did an article called “Tossing The Consumer Under The Bus…And Insanely Expecting An Economic Recovery”, I pegged the debt at about 128 trillion.  Here is 114 trillion. (LINK to graphic source with lots of other good visuals of money).

There is a great post on Zero Hedge (as usual) about visualizing large numbers, what prompted me to post this graphic. 

“When you have reached your destination 15,500 miles away, the 47,000,000 people you will have passed is the number of people lining up for a meal every day in America’s breadline, also known as food stamps, or SNAP.”

Of course today our bread lines are located in Wal-Marts at midnight on the last day of the month.

http://www.psychopathiceconomics.com/DavosEconomicForum/

rosiescenario's picture

" 1/3rd of Congress’s time spent getting re-elected."

 

Now if we could only get that 33% to 100% we might stand a chance of the economy actually recovering...

xela2200's picture

Presidency --> 6 years one term.

cpgone's picture

U. stocks are in a bear mkt. for a decade until FUk. is way forgotten.

Stocks and the demand of what they represent are not always linked.

REsource stocks just follow the main averages.

I dont see that changing as long as the Hedgies, HFT, and banksters run it all.

LeBalance's picture

just what I expect under Chris Martenson byline:

Exponential Function?

Up DOWN!

Bubble in population?

Clue?

/lol/

kito's picture

systemic collapse coming, buy stock in companies that may have financing dry up overnight, have their cash accounts obliterated, and the demand for their products drop off a cliff!!!  GREAT IDEA!!!! 

billsykes's picture

rick rule is a total scum bag. I wouldn't let this guy suck off my dog if he paid me.

run a screen back to 08 and see how well they did- not well. see how they are doing now- not well. my future prediction, even if gold hits 2500 I don't see the juniors doing well.  why?

1.  when they need money, they tend to be sloppy in regards to tight capital structure and dilution.  think 10%+ 1 warrant in commish. plus they dilute like crazy, to keep themselves in the nice Vancouver lifestyle.

2. gold even un levered will return higher returns than a group of 15-20 miners in most cases.

3. without cash they cannot drill, without drilling they won't be able to do press releases without that the stock will drop.

4. if things get really rough they start in on cowboy mining, they do not delineate a sizable proven reserve and start mining anyways in an effort to get cash to do more drilling. this signals the beginning of the end, as they cannot raise cash in the market. and the stock drops, and 100%+ of the gold will go into the miners pockets and not be declared on the income statement. a good sign of this is gold pouring pics on the website and a goose egg on the income statement.

5. junior miners only do well in good economic times. as the price of gold matters fuck all to a pre production mine its just a stock play at that point. same as the visible gold in a drill core, it matters fuck all.

6. pre feas study companies- they all will give up the gold to an experienced miner, and not always will you make bank when they do so.

bottom line if you have some cash to throw away, invest in miners and junior oil plays as a write off, and be surprised if you make anything. but I suspect that write offs are the least of your worries if the economy is down.

better off buying gold and physical silver, then maybe some; defense companies, beer stocks and cigarette companies.

but this is my overly strong opinion.

 

 

 

 

 

FranSix's picture

A producing gold company that has declared commercial production, with good grade controls, settled its permitting issues, completed a Preliminary Economic Analysis and submitted a financial report or two that starts at the outcrop in a safe jurisdiction with the exact type of geology that produces robust grades and has lots of room for growth.

What's so hard to understand about that?

 

PonziBeaver's picture

That's a fair and awesome comment about junior resource companies that are undercapitalized. Beware! Even with the best mine or oil prospect, you can get diluted to hell as the insiders issue themselves options and cash in years before any resource is even produced, then a big, well-capitalized company can come in and buy them out for a song. Early shareholders are left diluted and bought out lower than they bought in.

Do your DD and make sure your investments are well capitalized and not run by crooks!

 

pcrotty41@hotmail.com's picture

Uranium mines and uranium prices have had tough sailing since Fukishima/Japan disasters...I have held small position in EGRAF (Energy Resources of Australia) a Uranium mine owned by Rio Tinto.  Does anyone know why this stock has basically nosedived since 2010?  It went from $10 bucks to now under $2..it trades on the Pink Sheets or OTC market...not sure what is wrong if the mine is not producing or their production costs are out of whack or what?  They paid out a dividend just a few days ago so seemed to be ok but can't figure out why the stock price keeps getting whacked...?