Video News/Kitco Mining

Rick Rule, President and CEO of Rule Investment Media, says gold companies remain deeply discounted relative to the gold price, even as the metal breaks out and generalist investors begin returning to the sector. Speaking with Kitco Mining on September 9, Rule said investors need to distinguish between market price and underlying value. “Money is made on the delta between price and value,” he said. Rule also discussed gold’s sensitivity to U.S. real and nominal interest rates, silver’s leverage to gold, and why copper supply is worse than expected after years of underinvestment in exploration, development and productive capacity. He weighed Ivanhoe Mines’ Western Forelands copper discovery in the Democratic Republic of Congo, government take in high-price environments, and why streaming agreements could become part of future concession negotiations. Rule also discussed North American fiscal risk, Collective Mining’s Guayabales resource, physical gold, oil, copper and potential M&A targets around Beaver Creek.