This week, I sat down with veteran natural resource investor Rick Rule to discuss why he believes investors should be paying closer attention to government debt, long-term interest rates and the declining purchasing power of fiat currencies.
Rick believes the US dollar could lose around 75% of its purchasing power over the next decade. If that happens, he says a five-digit gold price seems reasonable. But his argument for owning gold is not simply about where the price might go.
Rick considers physical gold to be wealth and insurance. He does not own it because he thinks it will go up, but because he is concerned about what it would mean if it went significantly higher.
We also discussed why precious metals still account for less than half of 1% of US savings and investment assets, compared with a 45-year median of 2%, and why Rick believes the reality of declining purchasing power could eventually change the way investors think about gold.
The conversation also turns to gold stocks, silver and Rick’s contrarian approach to investing, including why he sold 80% of his physical silver earlier this year.
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