Rick Rule: Black Swan to Watch, “Berserk” Scenario for Gold, Silver

Speaking at this year’s Rule Symposium, which ran from July 7 to 11, Rick Rule, proprietor at Rule Investment Media, shared his updated thoughts on the US economy, including whether a recession is on the horizon.

In his view, it’s not guaranteed — he said investors may want to begin to expect one, but hope they end up being wrong.

When asked about how gold tends to perform in a recession, Rule said it often goes lower at first if the recession is accompanied by a liquidity squeeze. After that, it depends on how the US Federal Reserve responds.

‘If they respond to a recession by lowering the nominal interest rate by quantitative easing … what happens is the precious metals markets go berserk. So if we have a circumstance where we have an inflationary recession — stagflation — and where the Fed’s response is a political response, which is to say they make credit easy, then all bets are off for precious metals and precious metals-related assets to the upside,’ he explained during the interview.

Watch the video for more from Rule on the topics mentioned above, as well as his thoughts on uranium sector events, how to invest in rare earths stocks and potential time horizons for platinum-group metals.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.