Rick Rule

Some time ago Quest Capital sold all of its holdings in GBN.V. They were an insider in GBN.V shares prior to major developments and held warrants until they finally sold them off. He followed his own advice on warrants with GBN.V, but didn't wait around through the permitting issue, which lasted four years.

It suffices to say that GBN.V does not really meet with Mr. Rules' expectations. But he does say some things which meet with my expectations that high up-front cost open-pit low grade mines are likely to disappoint investors. (a rash of downgrades and shareholder dilutions bound to follow) Mining companies are going to have a hard time digging themselves out of developmental deficits they piled up for themselves. GBN.V shareholders have had a very narrow escape through commercial production, but it was accompanied with a brutal dilution of the shares. But gold companies aren't behaving like gold companies as of yet, by taking care of their investors as a priority. (I think GBN.V can, just that we haven't been shown the money)

I have listened to Rick Rule for several years, but only as a type of reality check, not as any form of advice. In fact, all of the financial advice from Eric Sprott, John Embry, Rick Rule, Doug Casey, Jim Sinclair have all at some time been wrong for some reason. The investor to follow is probably Tom Stanley of Resolute, though he does not have market commentary. But you'll see Resolute a holder of gold mining stocks where Sprott holds shares.

Not much makes any sense from the inflationists point of view. The market makes sense from a deflationary, inflation-adjusted point of view. Real terms in any valuation draws the veil from the deceptive market conditions we find ourselves in. In particular, intermarket conditions between the bond markets and small mining companies is especially important.

http://www.sprott.com/market-insights/rick-rule/