Current Bear Market In Resources Presents Opportunity For Investors

The inability of people to see the world for what it is was quite apparent with the nonsensical discussion of Fed tapering over the last several months. Many in positions of power sought to convince the unwashed that somehow these extreme monetary measures can be undone, or taken back. And many still believe them. As part of this naivety we then get people believing that entire asset classes, like gold, silver and mining shares are only for crazy people- that genuine tangible asset investing need not play any role in a given portfolio. My only advice for people is to please be very careful about drinking too deeply from the well of conventional thought. It is not that the world is going to end, but by the same token the days of 4 or 5% economic growth coupled with a strong and growing middle class are gone for a long time. This new reality requires a new attitude towards investing. Don’t let the recent weakness in the precious metals sector mislead you.

Here is some advice along these lines from Rick Rule, speaking to kingworldnews:
“As a firm, we have positioned ourselves in things that will benefit tremendously from the coming chaos such as precious metals and precious metals equities. I am afraid that the set of circumstances which will give us $70, $80 or $100 silver might favor me personally, but they wouldn’t be good for the bulk of the people in the United States. From that point of view I am troubled.

I am afraid that the average person in the United States has no idea what’s going on. So I have real concerns about this country and where the financial markets are headed as a whole. But I would say that I am more confident than ever that investors in gold and silver are going to be correct in their investment strategy.

So at the same time that I feel very, very distressed about the situation the country faces, and the condition of the economy, I feel more confident than ever about my outlook for myself and my own fortune. The big money that I have made in my life has been as a result of understanding that bear markets usher in bull markets at some point. Going through, as we are now, a truly spectacular bear market in resources, it sets up a remarkable opportunity to make money in the bull market.

I’ve spent my whole life preparing for this and I expect for people such as myself to be richly rewarded. I expect, however, to be part of a distinct minority. But I’m distressed about the outlook of millions and millions of good people who don’t understand what is taking place and will be badly hurt financially as a consequence.”