It'll Happen OVERNIGHT! What's About to Happen to Gold & Silver Prices Will SHOCK You - Rick Rule

Summary

The transcript discusses the market share of precious metals investments in the United States, highlighting the potential for increased demand and price surges in gold and silver. Rick Rule, CEO of Sprott US Holdings, is particularly bullish on precious metals, predicting a significant rise in prices due to factors such as the weaponization of the US dollar and the anticipated loss of confidence in the US Treasury Market. Rule emphasizes the importance of silver in green energy and forecasts a substantial increase in its demand and price, despite the current market's undervaluation of the metal.

Takeaways

• 📈 The market share of precious metals investments in the United States is estimated to be between 6 and 8%, significantly lower than the 4-decade mean of 2%.
• 💡 A return to the 4-decade mean for precious metals would result in a quadruple increase in demand and prices.
• 🔥 Rick Rule, CEO of Sprott US Holdings, is very bullish on precious metals like gold and silver, considering them as 'real money'.
• 📊 Gold has recently increased from $1,821 per ounce to over $2,200, but Rick Rule predicts much larger upside moves, possibly to $7,000 or $8,000 per ounce.
• 🏦 There is a gradual loss of confidence in the US Treasury Market, which could lead to a significant shift towards precious metals when fully realized by the public.
• 🌍 Central banks have been the primary buyers of gold, indicating that the metal is still disliked by individuals, which could be a contrarian indicator.
• 💣 The weaponization of the US dollar, such as the freezing of Russian assets, has led other governments to consider buying gold as a response.
• 🔄 The ongoing trade deficit and increasing demand for silver, coupled with unappealing mining prices, could lead to a significant rise in silver prices.
• 🌐 Silver's importance in green energy targets and its diverse industrial applications make it a critical metal with potential for price appreciation.
• 🚀 Rick Rule compares silver to uranium, noting that both have been historically disliked but present significant investment opportunities when conditions change.
• 💭 The psychological aspect of investing plays a role in the perception and demand for metals like silver, with many investors requiring price action to justify their investment decisions.

Q & A

What is the suggested market share of precious metals-related investments in the United States according to JP Morgan Chase?

The suggested market share of precious metals-related investments in the United States is between 6 and 8%.

How does the four-decade mean of the market share of precious metals compare to the current percentage?

The four-decade mean of the market share of precious metals is 2%, which is significantly lower than the current estimated range of 6 to 8%.

What does Rick Rule predict will happen if the market share of precious metals returns to the four-decade mean?

Rick Rule predicts that if the market share of precious metals returns to the four-decade mean, the demand for these metals, particularly gold and silver, would quadruple, leading to a significant increase in their prices.

What is Rick Rule's stance on gold and silver being referred to as 'real money'?

Rick Rule, being a known gold bull, views gold and silver as 'real money' and believes they are the natural conclusion to the collapse of the global financial system.

What does Rick Rule suggest about the current state of the US Treasury Market?

Rick Rule suggests that investors are gradually losing confidence in the US Treasury Market, but the scale of this loss is not as significant as it should be.

What are the factors that Rick Rule believes will trigger a massive move in gold prices?

Rick Rule believes that the weaponization of the US dollar, the stealing of Russian assets, and the upcoming realization by US dollar holders that their purchasing power is diminishing relative to the interest received from US treasuries will trigger a massive move in gold prices.

How does Rick Rule view the recent moves in the price of silver?

Rick Rule views the recent moves in the price of silver as a 'dead cat bounce' and not a significant change, as he believes the real move would be from the current price to much higher levels like $75 or $85 per ounce.

What is the forecasted global silver demand for 2024 according to the Silver Institute?

The Silver Institute forecasts that the global silver demand will reach 1.2 billion ounces in 2024, marking the second-highest level of demand on record.

What is the significance of silver's role in achieving the world's green energy targets?

Silver's importance in achieving the world's green energy targets is significant due to its use in solar panels, electric vehicles, and other green technologies. This demand, combined with a structural market deficit, is why Rick Rule expects silver prices to rise significantly.

Why does Rick Rule compare silver to uranium in terms of investment opportunity?

Rick Rule compares silver to uranium because both metals have been historically disliked by investors, yet have significant industrial uses and potential for price increases when their true value is recognized by the market.

What does Rick Rule suggest about the psychology of investing in silver?

Rick Rule suggests that many investors require price action to justify their investment decisions. He believes in investing in silver when it is 'hated' or unpopular, as this is when the potential for significant returns is the highest.

Outlines

00:00

📈 Market Share of Precious Metals and Investor Sentiment

This paragraph discusses the market share of precious metals-related investments in the United States, highlighting that it ranges between 6 to 8%, significantly less than its four-decade mean of 2%. It emphasizes the potential for gold's demand and price to quadruple if market share returns to the mean, influenced by public perception of inflation. The segment also features Rick Rule, a known gold bull and CEO of Sprott US Holdings, who is bullish on precious metals and predicts a significant upside for gold and silver prices. Rule suggests that the demand for precious metals will surge as investors lose confidence in the US Treasury Market, and he specifically notes the undervalued status of silver in comparison to its importance in green energy and other industrial applications.

05:01

📊 Silver's Market Dynamics and Potential for Growth

The second paragraph delves into the dynamics of the silver market, addressing the misconception that silver has reached record highs despite it still being below its all-time highs in inflation-adjusted terms. It discusses the silver market's structural deficit and the forecasted increase in global demand for silver, as well as the challenges faced by miners due to current prices. The narrative compares the silver market to the uranium market, drawing parallels between the two in terms of investment opportunities and market sentiment. Rick Rule's perspective on silver is highlighted, emphasizing the potential for significant price increases when the investment community's sentiment towards silver shifts from negative to positive.

10:01

💡 The Psychology of Investing in Silver

This paragraph explores the psychological aspects of investing in silver, particularly the challenges faced by investors in buying at the bottom or during price declines. It acknowledges the emotional need for price action to justify investment narratives and the tendency of investors to require validation before taking action. The segment also touches on Rick Rule's personal investment strategy, which involves buying into investments early due to his character flaw of finding it difficult to purchase when prices rise. The discussion concludes with a broader reflection on silver's dual role as a monetary and industrial metal, its widespread use in various applications, and the potential for silver prices to increase significantly given its value and demand dynamics.

Keywords

💡Market Share

Market Share refers to the percentage of the total market that a particular company or product holds. In the context of the video, it is used to describe the proportion of precious metals-related investments relative to other savings and investment products in the United States, which is suggested to be between 6 and 8%.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. In the video, it is suggested that if people's perceptions about inflation begin to change, gold may become more attractive as an investment, not needing to outperform the US dollar, but merely return to the historical mean.

💡Gold

Gold is a precious metal that is often considered a safe-haven investment, particularly during times of economic uncertainty. In the video, gold is discussed as a potential investment option that could see increased demand and price appreciation due to factors such as inflation and the weaponization of the US dollar.

💡Silver

Silver is another precious metal that has both monetary and industrial uses. It is highlighted in the video as a particularly undervalued asset with significant potential for price increases. Silver's importance in green energy technologies is also mentioned, suggesting a growing demand for the metal.

💡US Treasury Market

The US Treasury Market is where US government debt instruments, such as Treasury bills, notes, and bonds, are issued and traded. In the video, it is suggested that investors are gradually losing confidence in this market, which could lead to increased demand for precious metals like gold and silver.

💡Weaponization of the US Dollar

The term 'weaponization of the US dollar' refers to the use of financial sanctions and other economic pressures as a form of geopolitical leverage. In the video, it is argued that actions such as the confiscation of Russian assets have led to a situation where foreign governments may be more inclined to sell their dollars and buy gold.

💡Global Financial System

The Global Financial System encompasses the network of financial institutions, markets, and instruments that facilitate international trade and investment. In the video, there is a suggestion that the current system is on the verge of collapse, with precious metals like gold and silver positioned as potential safe havens.

💡Precious Metals

Precious metals are rare metallic elements with a high economic value, such as gold and silver. They are often considered storehouses of value and are used as investment assets. In the video, precious metals are discussed as potential beneficiaries of changing economic conditions and investor sentiment.

💡Investment Demand

Investment demand refers to the desire of investors to purchase a particular asset, such as precious metals, as a store of value or hedge against economic uncertainty. In the video, it is suggested that investment demand for precious metals could significantly increase due to factors like inflation and a loss of confidence in traditional investment vehicles like the US Treasury Market.

💡Green Energy

Green Energy refers to the production of electricity from renewable resources such as solar, wind, and hydroelectric power. It is part of a global effort to reduce carbon emissions and combat climate change. In the video, the importance of silver in achieving green energy targets is emphasized, suggesting an increase in demand for the metal.

💡Price Action

Price action in financial markets refers to the movement of prices of financial instruments, such as metals or stocks, over time. It is often used by traders and investors to make decisions based on historical and technical data. In the video, price action is discussed as a psychological trigger for investors to take action based on market narratives.

Highlights

JP Morgan Chase suggests the market share of precious metals investments in the United States is between 6 and 8%.

The four-decade mean market share for precious metals investments is 2%.

Rick Rule, CEO of Sprott US Holdings, is bullish on precious metals like gold and silver, considering them as 'real money'.

Gold's recent price increase from $1,821 per ounce to over $2,200 on March 21st is not the main concern for Rick Rule.

Rick Rule predicts a significant upside for gold, expecting it to trade at $7,000 or $8,000 per ounce in the future.

Investor confidence in the US Treasury Market is gradually decreasing, according to Rick Rule.

Central banks, rather than individuals, have been the main buyers of gold, indicating continued negative sentiment towards gold among individual investors.

The weaponization of the US dollar and the seizure of Russian assets have led other governments to consider buying gold.

Rick Rule compares silver to uranium, highlighting the potential for significant price increases when the market realizes the metal's true value.

Silver is used in various applications, including green energy technologies, which could drive up its demand and price.

Despite its many industrial uses, silver is not valued commensurately with its importance, presenting an investment opportunity.

Rick Rule believes that the upcoming realization of the diminishing purchasing power of the US dollar will lead to a surge in gold prices.

The silver market is currently experiencing a structural deficit, which could signal a future increase in silver prices.

Silver is traded at half of its all-time highs, indicating a potential for significant growth.

Rick Rule emphasizes that silver is a 'most hated asset' currently, which could make it a compelling investment opportunity.

The interview with Rick Rule presents insights into the potential future of precious metals, particularly gold and silver, in the global economy.

Investors are encouraged to consider the long-term value and potential of precious metals as part of their investment strategy.

Transcripts

the exact statement if you want it comes

from JP Morgan Chase by the way they

didn't have statistics for 81 but they

suggested that the market share of

precious bals related Investments

relative to other savings and investment

products in the United States was

somewhere between 6 and 8% number is

less than one half of one% importantly

the four decade mean is 2% meaning that

if People's perceptions about inflation

begin to kick in Gold doesn't need to

win the war against the US dollar gold

only needs to return to mean if the

market share of precious metals returns

to mean the four decade mean it means

that demand for the stuff quadruples and

that's precisely what I think happens

remember too that prices are set on the

margin Rick rule is a known gold bull

veteran investor and Speculator and the

CEO of sprout us Holdings Rick is

extremely bullish on precious metals

like gold and silver and describes both

as real money and the natural conclusion

to the collapse of the Global Financial

system while other gold bugs are

celebrating the metals recent upside

moves which took from

$1,821 per ounce last October to over

$2,200 on March 21st Rick is not as

excited and predicts that there are

massively larger and more significant

upside moves for the precious metal in

his words the music has not started yet

it starts when gold is trading at $7,000

or $8,000 per ounce according to Rick

investors are gradually losing

confidence in the US Treasury Market but

it is not happening on the scale it

should be when the the maximum

realization hits the public and everyone

realizes that the financial system is

rigged to fail Rick predicts that the

demand for precious metals beginning

with gold and silver will quadruple and

so will prices Rick has always been

particularly bullish on Silver which he

often describes as a most hated asset

but the opportunity of a century for

investors we will present clips from

Rick ru's recent interview with natural

resource stocks as we do please take a

little time to like this video subscribe

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this you can also check out our other

videos on gold and silver and the US and

Global economies thanks and enjoy the

video just no technician and I don't

offer any opinion as to whether we're at

or about to break out I would take issue

with your statement that gold is really

moved uh gold has moved from what 1800

to 22 and change yeah a move is what

occurred in the period 20 000 to 2010

where it went from 250 bucks to 19900

bucks I don't go personally because I

think it's going to move from $ 2,200 to

$2,500 I couldn't care less

music is gold moving from $2,000 to

$7,000 or $8,000 by the way I don't want

this to occur uh the set of

circumstances that causes it to occur

creates problems in our life and I would

prefer not to have problems in my life

I'm old and fat and Rich you know I

don't want that

but I believe that the set of

circumstances is in place uh that was in

place in the 1970s and in place again in

the first decade first part of the

decade of 2000 to 2010 for gold to make

a real move I don't mean a $30 move or a

$40 move uh I mean a real

move uh I believe too that what you've

seen in silver is more a dead cat bounce

than anything else technicians would say

it formed a long base uh what I would

say is very different I would say the

sellers got

tired uh right you run out of Supply

when you've taken out all the supply

it's interesting to note in the gold

market which you correctly surmise needs

to precede the silver market the buying

in the gold market has not been

individuals uh in fact individuals been

a net seller through the gold ETFs from

a contrarian point of view that's good

that means gold is still hated the fact

that it's despite the fact it's

performing the buyers of gold have been

central banks the cause of the gold move

isn't the incipient understanding of

inflation but rather the weaponization

of the US

dollar uh the stealing of $300 billion

dollar worth of Russian Assets in Us

treasuries by the US government does not

make other governments particularly

those who might be perceived as hostile

towards the us to continue to hold us

treasuries um the weaponization of the

US dollar through the Swift banking

system the attempt by the US government

to EXP Port their values extr

territorially through the dollar has led

to a circumstance where foreign

governments have no choice but to sell

their dollars and buy gold if you

combine the impact of the weaponization

of the US

dollar uh and the decisions it forces on

our trading partners with what I believe

is the upcoming realization by all

holders of US Dollars including American

Holders of US

dollars that the diminishment of their

purchasing power relative to the

interest they receive in US treasuries

is negative that's when you get a move

in the gold price a real move in the

gold price and after you see the real

move in the gold price you'll see a real

move in silver prices gold bugs now are

saying I'm seeing this all over the

Internet gold breaks out to record highs

wrong in constant dollars inflation

dollars gold is still below the its

all-time Highs but importantly silver is

trading at half of its so-called

all-time highs it amuses me to see on

the internet people you know basically

wet themselves with excitement that

silver has moved from you know $24 to

$27 or something like that that isn't

what the move's

about the move's about $75 or $85 is it

going to happen I don't know if it does

happen when's it going to happen I don't

know what I do know is this there is a

probability rather than a Poss

possibility that's going to happen and

if it happens the moves that you're

going to enjoy in the silver stocks uh

those moves which are demonstrated by

history will justify the weight both in

terms of financial terms and

psychological terms Rick rule has been

known to compare silver and uranium

years ago uranium was the most hated

metal for the same reasons as silver

today in 2017 the Metal's price was so

low that it cost more to produce a pound

of uranium than it sold for in the

previous year prices dropped to a

12-year low and the metal was the worst

performing energy commodity yet annual

Global consumption was around 18,000

tons greater than supply and demand

ramping up as countries like China India

and South Korea were all building

nuclear power facilities this made it

easy for experts like Rick to see the

immense opportunity in the metal and

urge investors to buy while prices were

still low the story is similar with Sil

today the silver Institute forecasts

Global silver demand will reach 1.2

billion ounces in

2024 if achieved this will be the second

highest level of Demand on record also

marking the fourth consecutive year of a

structural Market deficit for the

precious metal also current prices make

silver mining particularly unappealing

for miners yet the Metal's importance in

achieving the world's green energy

targets cannot be overemphasized this is

why Rick expects silver price to become

much higher than they are today possibly

even before the year ends let's get back

to the interview what's interesting to

note is that people can understand a

narrative like you did but they can't

bring themselves to action until the

narrative is somehow verified or

Justified that happens with price action

but when the price action occurs the

value of the narrative is

less in 2022 the uranium spot price was

at 20 bucks it had to go up if it didn't

go up there wouldn't be any more uran

and if there wasn't any more uranium the

lights would go off it was that simple

you had to decide is the uranium price

going to go from $20 to

$60 which was the price necessary to

incent existing production if the answer

to that was no you had to understand

that 20% of the base load power in the

US grid was going to go to grid Heaven

which meant the lights would go off so

did you believe that the price of

uranium was going to Triple or did you

believe that the lights were going to go

out that was your

choice the difficulty is that even

confronted with that choice and by the

way I probably confronted 300,000 or

400,000 people with that choice in

interviews in 2022

alone decision was brought to you most

people wouldn't make the decision

because they hadn't had the

psychological verification that comes

from the fact now that the narrative is

proven to be true with price action

people want to be in the Uranian

business after the price has gone from

20 to 100 which is to say when the price

had to go up nobody

cared uh after the price didn't have to

go up anymore everybody cared now I

don't think the silver case is as

compelling as the uranium case because

the uranium case was a must happen it

was an

inevitability silver is a can happen

it's a possibility but what's

similar is

hate people hate silver people who came

into silver in 2020 2021 the sort of

Reddit silver

squeeze were disappointed

there is no hate as sincere as the hate

of a jilted lover and silver has

millions and millions of jolted lovers

there will be comments in social media

after this interview why is that

drawn on about silver it hasn't gone

anywhere that's precisely what why I

talk about silver the fact that it's

hated when the investment goes from

hated merely to

unated the easy money is made and when

something is moved off the

bottom uh it's very difficult for me to

buy it so psychologically I have to buy

at the bottom or on the way down I have

no choice um because if the silver price

were to move too much Beyond where it is

today and the silver stocks were to say

go up 50% on their way to go 500% I

would be hardpressed to make myself buy

them so I normally need to buy these

things a year or two early because of a

flaw in my character but I recognize

it's a flaw in my character I recognize

that I have to guard

myself uh against my psychological

aberration most people have a different

psychological aberration they require

the price action to justify The

Narrative I don't have any of that and I

also don't have any fear at all of

missing out uh I'm not a guy who wants

to participate in technology or wants to

participate in cryptocurrency or wants

to participate in any Market that I

don't

understand I hope the other guy makes

money I don't care that he makes money

that I don't make I just want to make

money if

I know how to make silver is one of the

most popular Metals in the world serving

the Dual role of being a monetary and

Industrial Metal as a monetary metal

Silver's popularity and value are only

next to gold as an industrial metal

Silver is used in the making of many

everyday objects including jewelry

silverware coins solar panels cell

phones and several others the white

metal is the best thermal and electrical

conductor of all the metals making it

ideal for for electrical applications it

also has antimicrobial non-toxic

qualities that make it useful in

medicine and consumer products silver is

the best reflector of visible light

known to man which is why it is perfect

for jewelry silverware and mirrors yet

silver prices cannot be said to be

particularly commensurate with the

metals value more than a decade after

reaching an all-time high of

$49512 no surprise that silver investors

are extremely disenchanted and

disillusioned with the asset yet

seasoned investors like Rick rule

believe that the white metal is a

generational play that could and would

fetch investors a lot of money when the

right time comes do you agree that

silver presents a huge opportunity for

investors at current prices please share

your comments on Rick Rule's assessment

of the precious metal in the comment

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more videos like this thanks for

watching