Fast Increasing Gold Prices By Rick Rule

Central banks are increasingly buying gold, driven by concerns about the US dollar's politicization and purchasing power decline. Retail investors in the West are mostly staying out of the gold rally, but Chinese investors view high prices positively. Rick Rule anticipates potential movements in gold prices from North American and European retail buyers, along with existing Chinese and foreign central bank purchases. Silver's surge, fueled by gold's rise and copper's strength, could reach $30 per ounce soon, with potential to hit $32 in the second half of 2024 due to investment demand, according to Citi. Despite the rapid movement, the exact reason for silver's acceleration remains unclear.

Gold prices have surged over 10% since Valentine's Day and more than 20% since last October, nearing all-time highs, yet shares of gold mining companies haven't kept pace.
This discrepancy could be attributed to a significant increase in production costs, up 35% since early 2020 due to higher labor expenses. Rick Rule highlights the historical underperformance of the gold mining industry from a corporate standpoint, noting low investor expectations for gold stocks. Despite rising gold prices, mining stocks aren't reflecting the expected surge. Rule emphasizes the importance of discernment, suggesting only select gold mining companies are worthy of consideration. Let's continue with the interview.

the rally in gold prices persists, mining stocks are likely to eventually catch up and follow the upward trend. However, until that happens, the disparity between gold prices and gold mining stocks' performance may continue.

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