Source: Maurice Jackson for Streetwise Reports (6/25/19)
Maurice Jackson of Proven and Probable and Rick Rule of Sprott
USA engage in a wide-ranging discussion covering Pareto's law, the
importance of courage and conviction in investment, copper, mentors and
the upcoming Sprott Natural Resource Symposium.
Maurice Jackson: Joining us for conversation is legendary investor Rick Rule of Sprott USA. Mr. Rule, welcome to the show. In our interview last month,
we addressed a number of topics regarding where and what Sprott USA is
focusing their attention on in the natural resource space. And at the
conclusion of the interview, Rick, you stated that we should discuss
Pareto's law, which is known as the 80/20 law. But you put an
interesting perspective on the law that I had not considered. Mr. Rule,
expand the narrative on Pareto's law and please introduce us to the
concept of the 4%.
Rick Rule: Sure. And actually I'll take a little further than
that with your permission. Most people have heard of the 80/20
principle, which suggests that in any sort of major field of human
endeavor, 20% of the people engaged in that activity generate 80% of the
utility. In other words, 20% of the people do 80% of the work.
This turns out to be, broadly speaking, true. And it was pointed out
in social sciences by an Italian social scientist at the turn of the
last century named Pareto. Hence it's called Pareto's law.
It's appropriate to junior mining speculation because among other
things, the performance dispersion curves—that is, the performance of
relative management teams—aligns well, meaning that 20% of the
management teams in junior mining generate 80% of the money made.
What's important for readers to understand is that if you take that
successful population, the 20%, and you run them through the same
performance dispersion curve, they conformably align. Meaning that 20%
of the 20 do 80% of the 80. Or 4% of the population base generates about
65% of the positive utility in the sector.
And I think it works for at least one more standard deviation, which
would suggest that 20% of the 20% of the 20%, or eight-tenths of 1%
generate about 40% of the total utility generated in the sector. Which
is to say that one of the most important things that you can do as a
speculator is identify and align yourself very patiently with the
serially successful operators in the sector. And that is probably the
most important work that you can do as a speculator.
That isn't to say that identifying a Robert Friedland, or a Ross
Beaty, or a Lukas Lundin, or a Bob Quartermain, is the only work you
need to do. The truth is that when you buy stocks that are headed by
those people, you are still subjected to risk. You're still subjected to
volatility. You're still subjected to the vagaries of exploration.
But your most important task is to identify the serially successful
people—particularly identify the serially successful people in bad
markets where you don't have to pay a huge premium to be associated with
them. And then hang on for dear life and let them work their magic over
Maurice Jackson: We brought you on today to share some of your
golden nuggets of wisdom for those of us that ascribe to join you with
the serially successful. Now you're famous for stating you must have courage and conviction,
which is a critical distinction you've mastered. Expand for us the
psychology of courage, because this is a key attribute that you have.
Rick Rule: Well, it turns out it does take courage, Maurice.
We were looking back over the exploration capital partnerships series,
which is a series of investments managed by myself going back to 1998.
And we found, interestingly, that first of all, the vast majority of the
money that was made was made in a relatively small number of
stocks—ones that increased in price 1,000% or more. Particularly where,
of course, those investments were accompanied by warrants.
What was interesting was that despite the fact that we all want
immediate gratification, the average holding period for a ten-bagger or
1,000% gain was almost five years. So one needs to be patient.
The courage comes in because almost every stock that we enjoyed
1,000% gain in, we experienced a 50% share price decline in at some
point in time or another during our holding period for the stock.
The most dramatic example was the most successful stock that we
speculated in during that period, which was Paladin Uranium. That stock
was a bellwether in my career. We participated in a $0.10 financing, and
I think it was probably 1999, when nobody cared about uranium. And we
were rewarded for our contrarian genius by seeing the stock go from
$0.10 to $0.01. That is, we experienced a 90% loss in the stock. When
you experience a 90% loss, Maurice, there's no such thing as a hold.
It's either a buy, or a sell.
Mercifully, we had the courage to reexamine our precept and
determined that we were right, and the market was wrong. We did buy some
more stock. And amazingly, over the next five years, that stock went
from $0.01 to $10. Two times after the initial 90% decline, that stock
fell by 50% or more.
So you had in the course of an almost fictionally good gain depending
on how you count the start, $0.01 or $0.10 to $10. The initial test of
courage came with a 90% loss, and there were two future losses in excess
Similarly, Lumina copper backed by the serially successful Ross
Beaty: We did the first financing, if my memory serves me well, at
$0.50. And that stock ended up being liquidated in this series of seven
transactions. I forget what the total was, but somewhere in the $140
But either two or three times during the seven years that we held
that stock, the stock declined by 50% or more. So it's important that
you understand that while price is interesting, price is only relevant
to the extent that it varies appreciably from value, which means that
you have to have an opinion as to value and an opinion as to the ability
of a management team to continue to add value. Following price alone,
if you experience a 50% decline and you assume as a consequence of that
decline that there's something wrong with the company, almost always you
will be shaken out of circumstances that can give you a big gain.
And let me give you one further illustration, Maurice, that I think
will amuse readers. We aren't just talking about speculation in this
context. Warren Buffett, the legendary investor and CEO of Berkshire
Hathaway, points out that four times during his stewardship of Berkshire
Hathaway, arguably the most successful investment company in the
history of American investing—four times during his tenure, the stock
has fallen by 50% or more.
Now interestingly, if you examine a price chart of Berkshire Hathaway
going back to 1968, from 1968 until present, those 50% declines
relative to the share price escalation can't even be seen on the stock
chart. They're invisible because the stock has moved so much over 40
years. But if you experienced those 50% declines at the point in time
when you experienced them, they still caused you trouble. So I think
that's where the courage comes in.
Maurice Jackson: And before we leave courage, does the thesis, or is the scenario, very similar with uranium and copper today?
Rick Rule: Well, I think it is. If I'm understanding the
question correctly, the courage associated with commodity markets is
that the real money is made by buying industries that are, in effect, in
liquidation. And that does take special courage. Certainly, if you
looked at the uranium business today, the industry suggests that the
incentive price to produce uranium, including prior year write-downs,
which the industry never likes to talk about, and cost of capital, is
about $60 a pound. So you make the stuff for 60 bucks a pound and you
sell it for 27. You lose 33 bucks a pound, a 100 million times a year.
And that takes some courage. Buying companies that have no probability
of making money at the current commodity price requires courage. Some
would say it requires insanity.
The difference, I think, between courage and insanity is simple
arithmetic. Uranium, even in the United States, a wealthy economy that
allegedly can afford alternatives, generates about 15% of our base load
power. So it seems to me that the equation around uranium is that in the
next six or seven years, either the price goes up to the point where
the industry stays in business, or the lights go out. Those are your two
choices. There is no way to replace 15% of base load electricity supply
with any form of electricity in the next six or seven years.
So the courage comes into play and displaces allegations of insanity,
I think, when you recognize that if you have the courage to speculate
in an event that has to happen, but where you're just not sure when it's
going to happen, it's still a rational activity.
Maurice Jackson: And how about copper as well?
Rick Rule: Copper's more interesting. There are plenty of
companies that make cash at $2.75 per pound ($2.75/lb) copper, but the
incentive price for opening new copper mines is more like US$3.50/lb.
And US$3.50/lb, because it's a capital-intensive business, assumes the
artificially low interest rate environment that we're living in today.
If you had market interest rates—that is, if the prime interest rate was
at 5%, or 6%, or 7%—the incentive price to produce copper would be up
in the four or four and a quarter range.
Now if the world economy doesn't soften substantially, and I don't
know if it will or it won't, the copper price will go higher, because on
a global basis, we are living off of copper deposits that were
discovered 30 and 40 years ago and put into production, in most cases,
20 to 30 years ago. Deposits are very long of tooth. The great deposits
in the world, like Bingham Canyon, have been operating for 100 years,
Chuquicamata 100 years, Freeport-McMoRan Inc.'s (FCX:NYSE) Grasberg
deposit, 40 years, Escondida 30 years. These are very, very, very long
of tooth. And we aren't developing new copper deposits because we're not
at incentive price.
So supply is going to be constrained in the copper business. The fly
in the ointment here, Maurice, is if the economy does slow down, and I'm
not saying it will. I don't know. It could be that demand for copper
declines a little bit too. I'm willing to take that bet, because my
suspicion is that the ascent of man continues—hat is, the billion and a
half people at the bottom of the demographic pyramid continue to get
richer, and continue to urbanize. And the consequence of urbanization is
intensive use of electrical power, which requires lots of copper.
So my supposition is that even in an economic decline, that demand
for copper will be surprisingly resilient because of its utility—and
particularly, its utility to the poorest 20% of the people on Earth.
Maurice Jackson: How does the application of conviction fit into this narrative?
Rick Rule: Well, first of all, one needs to become educated
enough that one can have conviction. The suggestion that I've made on
your show so often is that one must be a contrarian or one will be a
victim. That bear markets are the authors of bull markets.
My conviction with regards to that, Maurice, was born simply of
experience. I've been in this business almost 45 years, and I've been
through, depending on how you count, five cycles. And I understand the
capital intention, the cyclical nature of the mining business. And I
know very well by now that bear markets are the authors of bull markets.
One of the things that gives me conviction that this market will turn
is that that is simply the nature of markets for things like
commodities, which are essential to mankind.
Other examples of conviction have to do with the intelligent
application of science. If you have been around geologists and geology
for a very long time, you begin to understand, first of all, what a good
geologist is relative just to a geologist. And you understand what good
geology is. And good geology overcomes a lot of sins. Market sins,
management sins, all types of sins.
So I think that conviction is the conjunction of experience and
education, which, while they're related, are not the same thing. Having
the education to understand the value of various inputs, and having the
experience to have, in your past, seen outcomes associated previously
with the same type of experiences that you're having today, gives one
I guess, in my case, the third factor in conviction is having
experience with people and teams. I have a high degree of confidence
that if I go into a business with a Robert Friedland, or Bob
Quartermain, or Ross Beaty, or Lukas Lundin, as a consequence of their
past performance, I have a lot of conviction that, if I support them and
stick with them—if I'm patient—that I'll have a happy outcome. And
that's really born of experience.
Maurice Jackson: You touched on science, but how about philosophy? How does that factor into your decision-making process?
Rick Rule: Well, I try not to let it enter in too much, to be
honest with you. I try to be mathematically and empirically based. The
truth is, in terms of philosophy, my own political philosophy is very
much libertarian and free market oriented, which means that I'm always a
sucker for the gold bug pitch. The consequence of that is that I try
not to listen to my philosophical side as often.
Now, related to a libertarian philosophy is an acceptance of the
precepts of Austrian economics and, in particular, the predictions with
regards to the activities of markets and groups of people that was
evidenced by Ludwig von Mises in “Human Action.” I would say, in that
sense—the understanding of economic cycles and the understanding of the
impact of cycles on human action—that that part of my investing
philosophy has been absolutely instrumental to my success.
Von Mises points out that although all of us believe ourselves to be
rational fact-gatherers, that's not what we are. We have a view of
ourselves as impartial observers that gather information, hither and
yon, and process it in a rational fashion. But that's not what we do, in
fact. We gather information that is convenient to our prejudices and
our paradigms, and we use the information that we gather to support
those same prejudices and paradigms.
Von Mises also points out that our expectation of the future is set
by your experience in the immediate rather than the distant past, which
is why bull markets go on longer than they should and why bear markets
go on longer than they should. If you have done lots of work around an
investment or speculation and you're attracted to it, but your
experience in the last five years has been that you get spanked for all
your hard work, you tend to be cautious and conservative in bear
markets—which is precisely when the markets are cheap—because your most
recent experiences have been bad rather than good.
Conversely, in bull markets where stocks are doubling and tripling
for no reason, you do two things. You confuse a bull market with brains.
That is, you assume that your good performance is in some way, shape or
form due to your own efforts. And you also become less cautious. Your
expectation for the future being set in the immediate past means that
you're irrationally bullish. Even in a market that's up 400% or 500%,
which is, as you know by now, Maurice, something that's not an uncommon
phenomenon in our sector. Yeah, I'll leave it there.
Maurice Jackson: Well, Rick, this is great information. Here's
one that really I find attractive with your thought process here,
because most people shy away from this. And it sticks with courage and
conviction. You're not afraid to put capital into companies that are in
challenging jurisdictions, either through civil unrest or through a
silent partner known as our benevolent government wishing to do some
profit-sharing with your capital. Why is that?
Rick Rule: I'll tell you why, Maurice. It's not like I think
Congo, or Russia, or Sudan, or Bolivia are the greatest countries on the
face of the earth. I'm certainly cognizant of political risk. The truth
is, however, that I've experienced lots of political risk in places
that are alleged to be good. My worst personal experience with political
risk was here in the People's Republic of California. But I've also had
money stolen from me by legislatures in places like British Columbia.
The truth is that investors who look like me, old and Caucasian, tend
for some reason to believe that money that's stolen from us in English,
according to the rule of law, is somehow less gone. So I'm not afraid
of bad jurisdictions, it's just I'm also afraid of so-called good
jurisdictions. And what I've learned is that in jurisdictions where
capital feels comfortable, a lot more exploration has taken place, which
means that the probability that I'm going to find a high-quality
deposit in a jurisdiction that I'm also comfortable in is very low. The
probability is that I'll find the type of deposit that will give me the
returns I'm looking for—1,000% plus—are much more likely to occur in
jurisdictions that have not been looked at as thoroughly.
Perhaps my most important mentor in the 1970s told me that in
exploration, money is made employing new ideas in old places—that is,
new technology—or old ideas in new places. But if you're using old ideas
and old places, you're assuming that you're smarter than everyone that
came before you, which is usually an incorrect assumption.
So, as an example, investments around the application of new
technologies like three-dimensional seismic measurement while drilling,
and new fracturing and recovery techniques, have revolutionized the old
oil fields of West Texas. That's a new idea in an old place. But
old-fashioned exploration technology—that is, projection of existing
trends, things like that—work well in places like Congo and Kazakhstan,
places that haven't been explored thoroughly for 40, or 50, or 60 years,
as a consequence of challenging social, economic, and political
circumstances. So I would say that while I'm certainly cognizant of
political risk, I define political risk much differently than many of my
Maurice Jackson: May I ask, was that Mr. Lundin that you were referring to there?
Rick Rule: Although Adolf Lundin would have said exactly the
same thing, the guy I was referring to was a man named Jack Brown, of a
private oil and gas company called Wagner & Brown.
Maurice Jackson: Before we leave speculation, we have a
subscriber that wanted me to ask you if you would share three junior
exploration stocks in the gold sector that you like best.
Rick Rule: I'm not allowed to do that. I'm U.S.-securities
licensed. And the consequence is that I can't make anything that smacks
of a recommendation to people whom I don't know. I can repeat the offer
that I've made on your show so many times, which is to evaluate people's
portfolio, rank people's portfolio for them, if they e-mail it to me.
But a general set of things that can be construed as recommendations is
something that I can't do. Is the person who's talking particularly
about precious metals?
Maurice Jackson: Junior mining stocks. Junior explorations stocks for gold companies.
Rick Rule: OK. If they're for gold companies, I can tell you
that I have been buying two recently. This doesn't suggest that your
subscribers should buy them. This isn't a recommendation. This is simply
a disclosure about two companies I've been buying. One is Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ),
run by Ross Beaty, which is down really substantially in price as a
consequence of, I think, the market misunderstanding the acquisition of
Tahoe Resources. And the other would be Sabina Gold & Silver Corp. (SBB:TSX; RXC:FSE; SGSVF:OTCPK),
which is a very large project in northern Canada, which is access
constrained, meaning that access to it is by a winter ice road. It's a
very large deposit that people are afraid of because they don't
understand when it's going to come in production. But we see it as both a
large and high-grade deposit that is highly likely to come into
It's important that your listeners note that these are not
recommendations. These are not suggestions. These are not tips. These
are merely two companies that I have been buying.
Maurice Jackson: Well, Rick, thank you for sharing that. And
Rick, speaking of gold, you're a strong advocate for owning physical
precious metals. But not in the context that we usually hear from those
who advocate having physical precious metals. Why does Rick Rule own
Rick Rule: Fear. I regard precious metals as insurance. And
insurance, in particular, against political interference with living
standards. I believe the most important determinant—certainly not the
only determinant, but the most important determinant—of the gold price
is faith, or lack of faith, in the U.S. dollar as expressed by the U.S.
10-year Treasury, which is the world's benchmark security. The dollar is
very, very strong, despite historically low interest rates.
I think that's partly about strong equities markets. I also think
it's about the relative weakness of competitors to the U.S. dollar.
While I consider the U.S. dollar to be a flawed instrument, it is
certainly a less-flawed instrument than the Japanese yen, the Chinese
yuan, the euro, the Canadian dollar— all of those. Doug Casey famously
says that the U.S. dollar is the prettiest mayor at the slaughterhouse.
That might be a bit extreme.
But I need to say that I'm less sanguine about the U.S. economy. I'm
less sanguine about our balance sheet; $22 trillion in on-balance sheet
liabilities and $100 trillion in off-balance sheet liabilities. And our
ability to service those debts, given the fact that we're running a
federal deficit at a trillion and a half dollars a year. I have less
faith in the U.S. dollar than many of my global counterparts.
And my suspicion is if you saw a circumstance where faith in the U.S.
dollar began to roll over, as it did in 2001, the price response that
you'd see in gold would be one where, even if you had a substantial
holding of U.S. dollars in your portfolio, the money that you would make
on your insurance policy, which is gold, could offset the money that
you would lose in your U.S. dollar-based accounts. I see gold, myself,
as a medium of exchange that's simultaneously a store of value. And the
consequence of that is that I own gold for insurance purposes.
Maurice Jackson: You're also famous for saying that it is payment in full. Can you elaborate on that for us?
Rick Rule: I think that's very important. The U.S. dollar is a
promise to pay. It supposes that people will continue to accept it.
Almost every fiat currency in history has always retreated to its
intrinsic value, which is, of course, zero. If, as an example, rather
than having U.S. dollars in your jeans, you had Venezuelan bolivars, you
would understand the promise for what it was. Something that could be
Gold is very different. It doesn't rely on faith. Gold isn't a
promise to pay. It is, in and of itself, payment. It is an asset that
isn't simultaneously somebody else's liability. And I think that's very,
very important. I don't think, as an example, that you're seeing the
Chinese government, the Chinese Central Bank, buying gold because they
like the chart. I think that you're seeing them buy gold because they're
afraid that the U.S. government will use U.S. financial markets and
U.S. dollars as a weapon in foreign exchange transactions.
And so the Chinese are looking—and I just point out the Chinese,
others are looking the same way—to a medium of exchange that isn't under
anybody's control and isn't a promise to pay, but rather constitutes
payment in and of itself.
It's interesting to note, Maurice, that over the last couple of days
in the news, you will see that Venezuela exported seven tons of gold to
Uganda, and then apparently onto either Dubai or Turkey. A pariah state
that can't necessarily trade in U.S. 10-year Treasuries can trade, can
buy and sell gold. But even more interestingly, apparently those gold
bars date from the 1940s, and they were payment from the United States
to Venezuela for oil that was sold in World War II, when the Venezuelans
had some doubt as to the outcome of the war, and weren't willing to
take U.S. dollars for their oil. They were willing to take gold.
So even a creditor as strong as the United States has periods of
time, has circumstances, where their promise, which is what their
currency is, isn't acceptable. But there hasn't been a time in recorded
history when gold wasn't acceptable.
Maurice Jackson: Well, I tell you what, I'm loving the
insights that you're sharing with us. What do the current metal prices
suggest to you right now?
Rick Rule: A mixed message, really. I think the very recent
strength in the gold price—by very recent I mean the last 10 days—is a
function of investors' realization that the United States is unlikely to
let the market dictate the interest rate. That is, society in the
United States has decided that spenders should prevail over savers, and
that the interest yield on the U.S. 10-year Treasury should be
When the U.S. Fed does [this], it's called quantitative easing. If
you and I did it, it would be called counterfeiting. I think there's a
realization in the market that the United States government is at the
very least considering another round of counterfeiting.
Now, in terms of counterfeiting, although the United States is a very
competitive economy, we don't lead in counterfeiting. In the Euro Zone,
there are many countries that are already paying a negative interest
rate yield. Euro Zone counterfeiting is much more pronounced, as is
Japanese counterfeiting, then American counterfeiting. But, as you know,
Maurice, we're in an extremely competitive society, and we want to
finish first at everything, even including the debasement of our
currency. And the consequence of that, I think, is the very recent
strength that you've seen in gold.
Maurice Jackson: And may I ask you this as well? We all have
our favorites, but right now, what is your favorite? Gold, silver,
platinum or palladium?
Rick Rule: For me, because I'm buying out of cowardice, it's
gold. I don't necessarily think that has the most price upside. A
speculator might look at silver, gold's so-called ugly stepchild. The
silver price moves after the gold price moves, but if past is prologue,
moves further when it does move. So a fear buyer would be in the gold
trade. A greed buyer might be in the silver trade. The silver trade is
something I probably would have done in my twenties. The gold trade is
something that I do in my sixties.
The contrarian, of course, would be in the platinum space. About 60%
of world platinum production is uneconomic at present. Most of it is
coming out of South Africa, a place that has its very own social and
political challenges, which could disrupt supply. Note that I said
could, not will.
So I think, as important as the attributes ascribed to each
individual metal are, what's more important is the investors' needs and
perceptions. Why he or she is doing what they're doing? I have other
ways to make money, which is to say, speculate in equities or
participate in debt markets. For me, the principal utility in precious
metals is for insurance, in effect, allowing me to sleep nights and stay
Maurice Jackson: Rick, thank you for sharing your golden
nuggets of wisdom. Let's switch gears here. On the 29th of July through
the 2nd of August, the Sprott Natural Resource Symposium
will be held at the historic Fairmont Hotel in beautiful downtown
Vancouver, British Columbia. Rick, introduce us to this world-class
event and who will be some of the featured speakers at the symposium?
Rick Rule: Well, it's going to be, in all humility, a
spectacular event. Nomi Prins will be speaking, you know. She's a
veteran financial commentator, a veteran banker, an investment banker.
Danielle DiMartino Booth, formally from the Dallas Fed, will be
speaking. We're bringing back, of course, Jim Rickards, Doug Casey,
Steve Sjuggerud, Alexander Green; many of the gurus that have
traditionally been so well received in the mining space.
But the part of the conference that I actually like the most is we'll
have a lot of speakers from the industry—in particular, speakers who
have passed the Pareto's law test. Speakers who have built
multibillion-dollar mining businesses from scratch. People whose
experience building businesses has allowed them to become successful
speculators too. And hearing from a business builder what he or she
thinks are the important characteristics of success in the mining
business is invaluable. Hearing Robert Friedland, who is the most
successful exploration speculator of my generation, talk about the
process of making money in exploration. Hearing Ross Beaty, who has
built 14 successful mining companies, talk about how you build a
successful mining company. That's really where the rubber meets the
Another thing we're doing this year, since all the guys I've talked
about before are of my vintage approaching or past their sell-by date,
is we're bringing in some people in their thirties and forties who have
already exhibited success, and who we suspect will be the mining titans
of the future, so that investors can get to know the people who will
make them as successful over the next 20 or 30 years, as I've been in
the past 20 or 30 years. A lot of the success, Maurice, to people
ascribed to me is really a consequence of my having identified and hung
onto the Lundins, the Ross Beatys, the Robert Friedlands, the Bob
Quartermains, the Clive Johnsons of the world.
It's important that speculators and investors your age and younger
find that next generation of superstar entrepreneurs. And we've tried to
do the dirty work for people by assembling as many of the high-quality
youngsters as we can in one place.
The other thing that's really useful, I think, Maurice, is that
you're going to have 600 high net worth investors in one location. The
idea that all of the knowledge in the room emanates from the dias is
ridiculous. There are a lot of experienced investors there, including
many mining industry professionals. And interacting with your peers,
listening to the questions that they ask in workshops, watching the way
that they react to presentations, is useful.
Finally, an important difference between our conference and every
other conference that we know of, is that our attendees have told us
that the exhibitors at our conference aren't advertisers, which is how
they're regarded at most conferences—that they are in fact investment
opportunities or content.
The consequence is that if you are a public company exhibitor at the
Sprott conference, you need to be owned in a Sprott-managed account. In
other words, they have been vetted by us. That doesn't, unfortunately,
guarantee that every stock goes up. But it does say that we know enough
about every exhibitor that we have our own capital at risk in them,
which I think is really important criterion.
And finally, Maurice, if I can continue this commercial, it is
possible to have fun in Vancouver. You've been there, you can attest to
this. Vancouver is a beautiful city. The weather in late July, early
August is sublime. Any investor who comes up there and doesn't go on the
attendee boat cruise with us needs his or her head examined. The hotel
itself is within walking distance of 200 restaurants. And Vancouver's an
amazingly scenic city, with mountains rising above 6,000 feet from sea
level right in front of you, and an embarcadero—a walkway along the
water—where you will hear six, or seven, or 10 different languages
spoken. It's truly a spectacular place. And I think it's going to be
difficult this year not to make money as a consequence of attending the
Maurice Jackson: Ladies and gentlemen, this is truly a world-class event, as Rick just shared. To purchase admission to the Sprott Natural Resource Symposium, visit our home page and simply click on the icon, and you'll be forwarded directly to the registration tab.
We touched on philosophy earlier. A day after the symposium, you'll be speaking at Capitalism and Morality,
founded by a mutual friend of ours, Jayant Bhandari. I love the timing
of the events. Rick, for someone new to Capitalism and Morality, what
would you like to share?
Rick Rule: Well, it's more philosophically oriented.
Capitalism and Morality is a lot of fun. The Adrian Days, and the Doug
Caseys, and the Maurice Jacksons, and the Rick Rules of the world,
talking about issues that are mostly unrelated to money. I'm going to be
very amused this year to be involved in public debate with my friend
Jayant Bhandari, who is, you know, of Indian descent, and who is, of
course, a viciously anti-Indian racist.
A white guy accusing a brown guy of racism at a public forum is only
something that could occur in a libertarian or anarcho-capitalist event.
I think it's going to be a lot of fun. Not merely for that, but for
people who have a philosophical or political interest, Capitalism and
Morality is wonderful value.
Maurice Jackson: To register for Capitalism and Morality,
simply visit our home page and right below the Sprott Symposium you'll
be directed to the registration tab. Sir, before we close, you
referenced earlier a free grading of one's natural resource [portfolio].
Fill us in on the details on that, please.
Rick Rule: Sure. That's pretty simple. Your listeners who are
interested in my opinion about their natural resource-related equity
investments need only e-mail me, email@example.com, with the names
and symbols of their resource holdings in the e-mail text, not as an
attachment. Remember, I'm 66 years old, and not always good at opening
attachments. I will rank their holdings on a 1-to-10 basis and return
those via e-mail. It's something I frankly enjoy doing. I learn a lot by
researching companies that I haven't known as well as I should. So I
look forward to conversing with your listeners, Maurice, and attempting
to assist them with at least my analysis of their holdings
Maurice Jackson: And to assist in streamlining these e-mails,
please make sure that you put in the subject line Proven and Probable.
Last question, sir. What did I forget to ask?
Rick Rule: I don't think much. I think we're doing a
reasonably good job—you in particular, Maurice, picking up bite-sized
topics to talk about. I enjoy talking about people. I remember we did
that once before, two or three years ago. And I enjoyed the process and I
enjoyed the product. So I don't think we've missed very much. I also
think we've probably worn out the audience, should we decide to prolong
it at any rate.
Maurice Jackson: I don't believe so, sir. For additional inquiries about Sprott USA and all their products and services, please visit sprottusa.com or call (800) 477-7853.
And as a reminder, we discussed physical precious metals. I'm a
licensed broker for Miles Franklin Precious Metals Investments, where we
provide unlimited options to expand your precious metals portfolio,
from physical deliver, offshore depositories, precious metals IRAs, and
private blockchain-distributed ledger technology. Call me directly at
(855) 505-1900 or you may e-mail firstname.lastname@example.org.
Finally, we invite you to visit ProvenandProbable.com, where we deliver Mining Insights and Bullion Sales.
Rick Rule of Sprott USA, thank you for joining us today on Proven and Probable.
is the founder of Proven and Probable, a site that aims to enrich its
subscribers through education in precious metals and junior mining
companies that will enrich the world.