Rick Rule: Buy The Next Thing To Move

Rick Rule: There’s Beginning To Be A Desire To, "Buy The Next Thing To Move" In Resource Markets

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TD: What were your thoughts in terms of issuer-exhibitors at the conference, and potential investment opportunities that were represented there?

RR: Well, it’s important to remember that we sort of self-selected in that regard. The attendees have told us for many years that the exhibitors are not advertisers like they are at most conferences but are rather content ‘in and of themselves’. The attendees expect us to in some way shape or form, ‘vet’ the exhibitors.
The way we did that was by only inviting issuer exhibitors that were owned in Sprott performance-fee generating accounts. So it’s actually the substantially high quality of the exhibitors that make this conference so unlike any others.

But the interplay between the exhibitors and the speakers, and the exhibitors and the attendees was fantastic. So one thing that comes to mind is that while there was a lot of attraction to gold and silver as commodities, as a consequence of the fact that they have run up fairly substantially in price, there was a lot of love shown by exhibitors to other exhibitors, by speakers to exhibitors and by attendees to exhibitors for the investment ideas that might come up next in the cycle.

In other words, there’s beginning to be a desire to get in front of the market and buy the next ‘thing’ to move. The consequence of that as an example was that there was substantial interest shown to copper as a commodity, to uranium as a commodity and once again, substantial interest among the attendees in particular to exploration stories.
The things that have moved in this market of course have been precious metal production and near term production stories, but people are coming to understand that high quality discoveries are rare.

As an example, we were able to have at the conference Mariana Resources, which has a high-quality gold discovery in Turkey, Azure Minerals which has the highest-quality silver discovery in Mexico, and Orex and Canasil which together have a high-quality silver discovery.

The fact that we were able to have three of the four most exciting discoveries worldwide represented at the conference I think added a lot to the tone and excitement of the conference.