Rick Rule: "We're In A Real Sweet Spot" For Investors

There's a golden opportunity in hard assets right now

The purchasing power of the world's major fiat currencies has taken a beating since the pandemic.

Just in the US, due to the spike in inflation, Truflation now estimates that the dollar has lost over a quarter of its purchasing power since January 2020.

Due to this higher inflation, as well as continued expectations for higher secular inflation over the coming years as globalization declines, nations re-shore supply chains and increasingly compete for global commodities, some of which are due for supply shortages -- it's no surprise that more investors are looking increasingly towards owning hard assets as a hedge.

So what are the most important trends and opportunities in hard assets right now?

To find out, we have the good fortune to talk with Rick Rule, perhaps the most seasoned & respected natural resources investor alive today.

Rick is very optimistic about the investment opportunities in hard assets right now, for a wide range of reasons

To hear them, click here or on the image below:

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Rick’s annual natural resources investing even, The Rule Symposium, is being held in Boca Raton, FL July 7-11, 2024

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Adam’s Notes: Rick Rule (recorded 6.17.24)

EXECUTIVE SUMMARY

• Higher inflation rates and ongoing expectations for elevated secular inflation are driving investors towards hard assets as a hedge. This trend is further supported by the decline in globalization, nations re-shoring supply chains, and increasing competition for global commodities, some of which are experiencing supply shortages.

• Rick suggests that we are in the early stages of a long-term bull market in commodities. Using a baseball analogy, he estimates we are in the second inning of this bull market, indicating that there are potentially years or even decades of growth ahead.

• So far, the commodity markets are being primarily driven by a reversion to the mean after a significant period of underperformance in natural resources and precious metals. He suggests that the current price increases in a number of commodities is just the beginning of a “mean reversion” process and expects prices to overshoot as momentum builds.

• For industrial materials, increasing competition and the underinvestment in productive capacity over the last 30 years are taxing supply and driving demand. As more people globally strive to improve their living standards, the demand for these materials is expected to rise.

• Rising gold prices are driven by growing fear regarding the stability of fiat currencies. Rick notes that the market share of precious metals in US savings and investment assets is less than 0.5%, down from a four-decade mean of 2%. If this market share reverts to the mean, demand for gold could quadruple. Rick also highlights that