Rick Rule, CEO of Sprott Asset Management USA

Rick Rule began his career in the securities business in 1974 and has been principally involved in natural resource security investments ever since. Rick has dedicated his life to all aspects of the natural resource industry. believes he is one of the best natural resource investors in the world.
When it comes to the silver market, Rick points out research done by Eric Sprott and Sprott Asset Management, “Including recycled, we produce around 3 million ounces of silver per day, yet we trade on the paper markets about 100 million ounces per day. There is about 40 million ounces available for good delivery on commodity and futures exchanges, what that means is that there is about half a day’s trading available for delivery against those futures contracts. It would appear to me that if there was any small increase in the number of people in the futures markets who simply held for delivery, that there wouldn’t be enough silver to satisfy that demand. And that the commodity markets would go into a cash market mode, which would have a dramatic impact on the silver price. Will this take place, I don’t know, but I certainly for one wouldn’t want to be one of the people short in the paper market if i t did.”
“The mismatch between the precious metals futures markets and the physical availability of metal is a consequence of stupidity more than anything else.”

Visit Our Sponsor, Canarc Resource Corp: