Rick Rule: Don’t Hold Yourself Hostage in Any Counterfeit Currency

Tom welcomes back the legendary investor Rick Rule to discuss the mining business and current geopolitics. Rick takes the gloves off and critiques how governments are inherently corrupt and why they prefer fiat systems.

He explains the difference between backing a currency and pegging it to a commodity.

Rick's approach to measuring wealth is by counting ounces, not dollars. Investors should try to avoid being held hostage to any one currency. The United States has chosen to weaponize both its banking system and currency. This grants them the ability to export their inflation to the rest of the world.

Those that take control of their own future tend to do very well. He is hopeful that the world will improve and that the safeguards taken never become necessary.

A lot of politics is pretending. We see a lukewarm political war between Russia and Ukraine, and the West. All the while, Europe is buying energy from Russia while supplying Ukraine with weapons. What we see is the manifestation of politics and is truly a tragedy.

Many countries of the west, including Canada are surprisingly anti-oil, and irrespective of economic interest, they don't want to develop their resources. Energy problems are likely coming to California due to these types of policies.

Higher uranium prices are coming because we consume more than we are producing. Inevitable should not be confused with imminent. The Sprott trust has bought a lot of surplus pounds. Japanese restarts will increase the consumption of uranium and will be extremely important.

Rick gives several reasons why he believes gold will continue to move upward and what it will take for him to consider selling. He believes huge structural changes are coming for bonds, and money will flow to alternatives like gold.

People are reluctant to buy asset classes when they are on sale because they want to follow what others are doing.

Rick invests in juniors by carefully working with successful management teams. Those teams should be operating where they are suited and have had previous success. Deposits need to be in the right jurisdiction with significant size and be very economical.

Rick never buys a stock unless he understands both the upside value proposition and the potential downside target level.

Talking Points From This Episode

* The war in Ukraine and Russia's decision to peg its currency to commodities.* Politics, lies, and why governments prefer fiat currencies.* Why uranium prices will inevitably have to rise.* What to look for in juniors and why investors fail to take advantage of low prices.

Time Stamp References:0:00 - Introduction1:07 - Ruble & Commodities4:57 - Sanctions & Seizures8:18 - Gov't & Trust10:23 - WEF & Being Happy14:40 - Reading Picks18:03 - Rick's New Role22:50 - Sanctions & War27:12 - Nuclear Energy29:39 - ESG Reality35:57 - Catalysts for Uranium43:08 - Politics & Investing46:03 - Rick's Gold Thesis52:24 - On Sale & Sentiment57:09 - Inflation & Supply1:02:12 - Probability Investing1:07:24 - Pricing & Valuing Tuna1:10:14 - Investing & Discipline1:15:08 - Wrap Up

Book List:Economics in One Lesson - Henry Hazler - https://tinyurl.com/3wf5f3fkIntelligent Investor - Benjamin Graham - https://tinyurl.com/ycynnfxbSecurities Analysis - https://tinyurl.com/5absy9z5Human Action - Ludwig von Mises - https://tinyurl.com/4h54z98bSkin in the game - Nassim Taleb - <a href="https://tinyurl.