The bigger the bear market, the more furious the next bull market, especially with commodities. When a bear market like this in commodities is so deep, production will be destroyed. In a new bull market fase it takes a lot of time to build new production. That’s why the next bull market will be maniacal.
Rick Rules has decades of experience. Unfortunately he doesn’t see a bottom for gold and silver. The American dollar and US Treasuries are to strong to see a significant rise in gold and silver.
When investors run from the euro because of the turmoil, or when investors run from oil because of the tension in the Middle East, they don’t turn to gold – they turn tot he US Dollar.
Not untill there is weakness in the US Dollar and 10Y US Treasury, there will be no bottom to gold and silver. It’s a waiting game untill the markets loses confidence in the US Dollar. But at the moment confidence is strong.
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Due to shortage the price of silver will explode
Rick Rule still thinks gold and silver will lose the battle with the American Dollar. But the loses will be less severe as most people think. By that it will feel like a victory.
The new bull market in silver mines will be maniacal. Silver is produced as a by-product to gold and base metals. But the bear market in gold and base metals is cutting future production. That will produce less silver as a by-product.
At $14 there is also little interest in producing silver for the primary silver producers. So they will cut production to. At some point the price will explode when there is not enough silver production to meet demand.
Listen to the full podcast with Rick Rule for priceless insight at the commodity market.