At the Metals & Minerals Investment Conference in San Francisco this week, Sprott’s Rick Rule talks with Daniela Cambone of Kitco News about the current state of the industry and to get his thoughts on gold. “There is a lot in this market to like because the companies are 3 or 4 years better than they were and they’re selling at 25% of the prices that they were selling for before,” Rule says. “We’re attracted to very large, high-grade deposits in political risky jurisdictions. We would rather have political risk than technical risks,” he adds. Rule also says that 70% of the companies in the industry are valueless and investors should concentrate their efforts on the top 20% of issuers in this market or they will get “slaughtered.” With regards to the yellow metal, Rule says he would much rather own gold than not.
