Rick Rule, a renowned investor and precious metals expert, has noted that macroeconomic factors are currently setting up an extremely bullish market for gold. Once this momentum is established, he added, movement into silver will start because of its low unit cost.
"As soon as this starts, the upside can be tremendous," Rule told host Dunagun Kaiser during a recent episode of "Liberty and Finance."
However, silver bull markets can take a while to start. "The silver speculator must know the circumstances which would set a bull market off and this can be in place for three to five years. If they are not, investors are gonna miss a lot of the move," Rule said.
He also warned that the silver bull market can be extremely volatile due to primary silver production, which is now less than 18 percent of the total supply. Most of the supply comes as a byproduct of producing other metals such as copper, lead, zinc and gold mines.
"And in that case, the outlook for the silver price is very bullish because most of the mines that produce silver are past their peak production and the mining industry has been really lacking in a new project investment for a very long time," Rule explained. "So silver is an example of copper production byproduct set to fall fairly precipitously within five years because silver production itself is going to fall precipitously." (Related: Nearly 300 million ounces of physical silver have been drained from the market.)
Weaponization of American dollar boosts gold demand
Elsewhere in the show, Kaiser asked Rule if there are geopolitical factors to watch out for that would change the fate of gold since it establishes the momentum toward the silver bull market.
We are building the infrastructure of human freedom and empowering people to be informed, healthy and aware. Explore our decentralized, peer-to-peer, uncensorable Brighteon.io free speech platform here. Learn about our free, downloadable generative AI tools at Brighteon.AI. Every purchase at HealthRangerStore.com helps fund our efforts to build and share more tools for empowering humanity with knowledge and abundance.
The precious metals expert said that one of the things that helped gold demand in the last three years has been the U.S. government's policy of weaponizing the dollar. "The U.S. dollar is still the world's medium of exchange and form of settlement. And the largest asset class for domestic and foreign savers in the world is still the U.S. Treasury market," Rule said.
He added that the government has done its very best to debase the franchise that the U.S. dollar enjoys, weaponizing it and at the same time weaponizing the Society for Worldwide Interbank Financial Telecommunications (SWIFT) banking system. This vast messaging system allows banks and other financial institutions from all around the world to send and receive encrypted information, namely cross-border money transfer instructions.
According to Rule, the countries that don't like the extraterritorial imposition of the U.S. policy began to store large amounts of gold.
"Imagine yourself running the Chinese central bank, sitting on a pile of $2 trillion of U.S. treasuries. Imagine, first of all, that you understand that the U.S. government is weaponizing the dollar against you in China and it is paying you 3.5 percent in a currency where the purchasing power is falling by seven percent. Why would you subsidize somebody acting like an avowed enemy?" he explained, citing how people around the world realized this fact through the gold purchases of central banks around the world.
Check out Metals.news for stories related to gold and silver.
Watch the full episode of "Liberty and Finance" with Dunagun Kaiser featuring Rick Rule below.
This video is from Liberty and Finance channel on Brighteon.com.
More related stories:
Bitcoin's value continues to shrink amid Russia-Ukraine conflict; investors turn to gold and silver.
Sources include:
Please contact us for more information.