In a recent phone interview, we had the pleasure and honor to chat with Rick Rule, chairman of Sprott US Holdings. In this exclusive interview he talks about the academic nature of the Fed, the continued need for low interest rates, the hidden strength of the U.S economy, and the durability of the U.S dollar as the world’s reserve currency.
Sprott U.S Holdings is active in securities brokerage, segregated account money management and investment partnership management involving both equity and debt instruments, across the entire spectrum of the natural resource industry with more than $7 billion under management.
JP: Let’s move into recently the latest Fed meeting we had with the new chairwoman Janet Yellen. Can you comment on her first testimony in front of congress yesterday.
RR: Well it was, from my point of view, unfortunately predictable. I think she’s probably a very nice woman I think she is very intelligent and I think in terms of candidates they considered for Fed chairman she was probably a good pick. My problem is with the candidates…to read more click HERE.
Are Gold And Silver Ready To Rumble?
At first glance, silver appears to be moving in step with gold. Gold’s up 11% year to date and up over 7% month to date, while silver’s up 10% for the year and gaining 11% for the month.
“The silver market is showing quiet strength and major support has been defined in the $19 to $20 levels for May Silver.” Commented Karl Schott, a silver specialist with the Equity Management Academy. The fundamentals have not changed and in fact have gotten stronger.
Have Gold And Silver Mining Shares Bottomed?
The Market Vectors Gold Miners ETF (GDX) has climbed 26% year to date, including nearly 14% this month to date. That compares to the gold-backed SPDR Gold Trust’s (GLD) gain of around 10% year to date, including 6.3% this month.
The current price action seems to have discounted all the bad news regarding reserve losses, write downs and margin compression commented, Brien Lundin, Editor of Gold Newsletter.
When you take a look at the gold miners, they have recouped a third of what they lost last year…
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