Video News/Kitco Mining

Rick Rule, President & CEO of Rule Investment Media, says falling mining shares have pushed gold-equity valuations to some of the lowest levels he has seen in his career. Rule said he is adding to physical gold and mining stocks across royalty companies, producers, developers and explorers, even as higher nominal interest rates could create further downside in the near term. “The gold sector is right now as cheap as it’s been at any point in time in my career,” he said. Rule also warned that the U.S. midterm result could put recent mining-permitting gains and government support for resource projects under pressure. On copper, he said data-center demand would shift rather than disappear if projects move outside the U.S., while Freeport-McMoRan’s Bagdad expansion highlights the rising cost of adding supply. Rule also said the junior mining financing window has “slammed shut,” creating opportunities for buyers as tax-loss season begins.