Rick Rule – Return of Bullish Fear Trade for Gold

Excerpt of a new KWN blog post featuring Rick Rule of Sprott Global:  “So we are now seeing what looks to be the extremely supportive and bullish return of the ‘fear trade’ in gold. I think these are very interesting markets, Eric.”

Rule also added: “It is also important to note that gold equities are in fact equities. We have seen the volatility and choppiness in the equity markets roiling the gold equity markets. So people need to be cautious, but they need to participate.

I would also point out that the merger and acquisition market in the gold business has been continually hot, and I think it will stay that way. These depressed prices, in the quality shares, are tempting suitors in both the junior and senior gold’s to swallow up their smaller prey.

The second thing we are seeing is the discovery cycle I told KWN readers and listeners was on its way. Last week we saw the best batch of drill holes from the most companies that I’ve seen in this market for ten years.

At the same time the senior equity market is volatile and the junior equity market is being mauled by a lack of capital, the seeds for a recovery in the better part of the junior market are being sown. This is precisely because of merger activity and discovery. It’s going to be an extremely interesting rest of the summer, Eric.”

Entire Blog post is at the link below. 
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/24_Rule_-_The_Return_Of_The_Mega-Bullish_Fear_Trade_In_Gold.html