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pierregon Mar 04, 2020 10:50am
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Rick Rule on the strategy of doing nothing
Rick Rule on the strategy of doing nothingRick Rule on the strategy of doing nothing. PDAC Mar. 2nd '20.
Video segment: https://www.youtube.com/v/IkeexRoPXEw?start=295&end=354 My transcript
Rick Rule: « Listen, if you are a speculator who wants to be in the equity rather than the metal and you think the price of something is going up. The idea that you buy a company that's producing a lot of Gold. Particularly one that isn't making money, a marginal. They're producing it now because I think the price is gonna go up later that's insane. When the price goes up you have a hole in the ground where your gold used to be. The right thing to do for a certain class of companies if you believe the Gold price is going to go up, just leave it right there safely in the ground. I remember years ago we were helping Jock McGregor the now-deceased Jock McGregor build Vista and he had been a miner all his life and about six months into the strategy I remember he called me he says 'you know what Rick not mining is a hell of a lot easier than mining'. The truth is if you believe the Gold price is gonna go up the idea is that you buy large deposits that don't make money at today's prices that will make money to higher price and you do something difficult but brilliant which is nothing. »