In this special daily editorial, we are joined by Rick Rule, Founder of Rule Investment Media and Battle Bank. Rick provides a candid look at his recent portfolio maneuvers, explaining the logic behind selling physical silver to rotate into high-quality equities. We dive deep into the valuation disconnects currently plaguing the resource sector and why “boring” large-cap energy producers might be the smartest play for the next five years.
Discussion Highlights:
- Silver Portfolio Rotation: Rick discusses selling 80% of his physical silver and 25% of his junior mining positions following recent parabolic moves to eliminate downside risk while maintaining upside through select silver stocks.
- The Silver/Stock Valuation Gap: Why silver equities are currently priced for $45 silver while the spot price sits significantly higher, creating a massive opportunity for a re-rating in high-quality miners.
- Energy Sector Outlook: An analysis of the under-investment in sustaining capital within the oil and gas industry and why Rick is favoring Canadian mid-tiers and majors like Exxon Mobil (XOM) and Schlumberger (SLB).
- The Pitfalls of Mining Metrics: A breakdown of why the “ounces in the ground” metric is often misleading and the importance of focusing on All-In Sustaining Costs (AISC) and Return on Capital Employed (ROIC).
- Investment Education: Details on the upcoming Rule Natural Resources Investment Symposium in Boca Raton and the free educational resources available through the Rule Classroom.
Click here to learn more and sign up for the Rule Symposium on July 6-10 in Boca Raton – https://cvent.me/XOqdLa?via=KER
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- Shad’s resource market commentary: https://excelsiorprosperity.substack.com/
Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.