Don’t be Fooled by Gold’s Pariah Status

Rick Ruleyoutu.be

Gold is currently priced at around US$1,665 per ounce, well below its Q1 high point of more than US$2,000. But the yellow metal’s performance in non-American currencies tells a different story.

Speaking to the Investing News Network, Rick Rule, proprietor at Rule Investment Media, said gold is in a bull market in every currency in the world except the US dollar, meaning most investors are seeing higher prices.

“Gold is (only) a pariah for 23 percent of the world’s GDP, which is to say Americans,” he said.

In his view, people in the US should be concerned about factors such as the aggregate national debt, negative real interest rates and the amount of government spending compared to government income.

“(If investors are concerned about these factors), then I think (they) need to be attracted to gold, and they need to be grateful that the price is low enough that it’s affordable,” Rule explained.

Looking over to energy, he shared his thoughts on the growing crisis in Europe, saying that North Americans should take it seriously, despite having better access to commodities and better energy infrastructure.

“We are truly blessed, but we are still pursuing political policies that are not in our own best interest, and we need to recognize that as there are more people on Earth, and as living standards rise, that we’re going to compete with more and more societies — not just Europe — for natural resources,” said Rule during the interview.

When asked to rank energy opportunities, he emphasized that it depends on the investor. For example, those interested in speculating should be looking at uranium, while those with less appetite for risk should stick with oil and gas. Meanwhile, those with a “sense of humor for political risk” may want to consider coal.

Watch the interview above for more from Rule on gold and energy. You can also click here to read our recap of the New Orleans Investment Conference and here for our full event playlist on YouTube.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.