During a time in which sentiment towards natural resources is bordering on doom, Rick Rule, Chairman of Sprott U.S. Holdings was kind enough to share a few comments.
Speaking first toward the phenomenon of market capitulation Rick noted that, “Capitulation is a very dramatic event. It’s when most participants in the market give up completely and simultaneously. They are two or three week periods [of] extraordinary [share price] violence. They’re emotionally driven rather than arithmetically driven events.”
One of the more important utilities of a capitulation according to Rick, is that, “In my experience they have marked definitively the end of long bear markets.”
When asked for a prediction on the gold price, Rick concluded that, “[The fight] is between gold and the U.S. 10 yr. treasury—and I don’t see how over 5 years we can possibly lose that fight.”
Is the bottom really in? Could there be a final capitulation just ahead of us?
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