Veteran resource investor Rick Rule foresees a significant surge in gold prices, citing the unsustainable fiscal path of the United States, he told an industry event in London.
Rule pointed to US$36 trillion in on-balance-sheet debt and over US$100 trillion in unfunded liabilities as critical factors. Comparing the current trajectory to the inflationary policies of the 1970s, he highlighted gold’s dramatic rise from US$35 to US$850 per oz. during that period.
“The arithmetic of the U.S. fiscal deficit is inescapable,” Rule told an investor breakfast during The Northern Miner’s International Metals Symposium on Dec. 1. “At some point, the purchasing power of the dollar will reflect that reality, and gold will be the beneficiary.”
Rule’s forecast aligns with rising interest in precious metals as hedges against economic uncertainty and currency devaluation. His contrarian approach focuses on undervalued assets, positioning early in market cycles to capitalize on fiscal pressures.
Watch the full interview with The Northern Miner’s podcast host, Adrian Pocobelli.
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