What's the ideal way to get into gold stocks right now? According to Rick Rule of Sprott, investors should begin by buying the best of the best. "In the equities we are suggesting to people that at the beginning of a gold bull market you want to buy the best of the best stocks," he said at the New Orleans Investment Conference.
"If you have a cycle where the index has moved 200 percent to 1,200 percent on the upside, you don't need to outperform the market, you just need to perform with the market. So rather than increase risk to try and outperform an already hot market, our belief is that most investors should try to reduce risk - buy the best five or six stocks in the industry, hold on for the two or three year time frame."
Rick Rule, founder and chairman of Sprott Global Resource Investments Ltd., began his career in the securities business in 1974. He is a leading American retail broker specializing in mining, energy, water utilities, forest products and agriculture. His company has built a national reputation on taking advantage of global opportunities in the oil and gas, mining, alternative energy, agriculture, forestry and water industries.