Rick feels the current pattern for gold, one of climbing the wall of fear, and then slowly lurching higher and backfilling is an excellent sign for this market. We have been in an M&A cycle for the past 12 to 18 months, with another 18 to 24 months more to go. This industry is plagued with too many names and too much general administrative expenses. Acquisitions permit the disposing of marginal assets and allow companies to focus their best core assets. Money in this market will currently be spent on companies that should be acquired.
Time Stamp References:0:40 - Why the current market is very healthy.1:40 - The M&A cycle is in progress and will continue.3:40 - Patience with investing and age.5:10 - Intuition and finding good people.7:10 - Issues with being too early in a market.8:30 - Lessons and why Rick likes the concept of risk.9:15 - Delivering utility to others.11:00 - Eric Sprott and his long-term vision.12:00 - Sprott USA and his offer.
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.