Rick Rule: What I Do When Markets Make No Sense

Which way from here? How do we separate what we know from what is unknowable? And how can we take prudent actions to both reduce risk and capitalize on high-probability of future gains, despite unprecedented and unpredictable forces at play?

- Source, Reluctant Preppers

Eric Sprott Announces Investment in Ely Gold Royalties Inc

Eric Sprott announces that, today, 2176423 Ontario Ltd., a corporation which is beneficially owned by him, purchased 9,375,000 units of Ely Gold Royalties Inc. (Ely Gold), pursuant to a private placement, at a price of $0.80 per unit for aggregate consideration of $7,500,000. Each unit consists of one common share and one-half of common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $1.00 per share for a period of three years, subject to acceleration in certain circumstances.

Mr. Sprott now beneficially owns and controls 36,496,594 common shares and 19,711,442 common share purchase warrants of Ely Gold (representing approximately 23.2% of the outstanding shares on a non diluted basis and approximately 31.8% on a partially diluted basis). This acquisition resulted in a beneficial ownership increase in holdings of greater than 2% of the outstanding common shares from what was reported on the last early warning report. Prior to this acquisition, Mr. Sprott beneficially owned and controlled 27,121,594 common shares and 15,023,942 common share purchase warrants representing approximately 28.0% of the then outstanding shares on a partially diluted basis.

The units were acquired by Mr. Sprott, through 2176423 Ontario for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Ely Gold including on the open market or through private acquisitions or sell securities of Ely Gold including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Ely Gold is located at 2833-595 Burrard Street, Vancouver, BC, V7X 1K8. A copy of the early warning report with respect to the foregoing will appear on Ely Gold's profile on SEDAR at www.sedar.com and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

- Source, Junior Mining Network

Rick Rule: When Gold Prices Will Finally Be Catching Fire

The commodities complex will likely see another bull run in the next three to five years, this according to Rick Rule, president of Sprott U.S. 

“My suspicion is that the next five years will be very good for natural resources investors, with precious metals enjoying a two or three-year bull market and somewhere towards the end of that bull market, the rest of the commodities complex catching fire,” Rule told Kitco News.

- Source, Kitco News

Sprott's Grosskopf: It's now 'mandatory' to hold gold as Fed supports infinity QE

The Federal Reserve is wrapping up its first regularly scheduled monetary policy meeting since the global economy was turned upside down because of the COVID-19 pandemic. 

Since early March, the U.S. central bank has thrown all it can at the growing economic crisis; in less than two months, it lowered interest rates to the zero bound range and introduced unlimited quantitative easing measures. 

Peter Grosskopf, chief executive officer at Sprott Inc., said that he doesn't think the Federal Reserve has much ammunition left but will continue to buy government debt to support the economy. 

"We do think the Feds end up being the subject of last support for the treasury market," he said. "The important subject in the market, the important theme is financial repression."

- Source, Kitco News

Sprott’s Peter Grosskopf: It will be much harder to get gold as Scotia winds down bullion desk

Physical precious metals investors continue to get hit with bad news after Reuters reported that Scotiabank would wind down its precious metals business by 2021. 

Peter Grosskopf, chief executive officer at Sprott Inc., said that this could add to the supply crunch for gold. The COVID-19 pandemic has already severely impacted the precious metals' global supply chain. "We were already having a tough time getting the amount of physical that we require. 

I think it's going to be that much harder," said Grosskopf. "It's almost the opposite of what's happening in the oil market right now." In 2018, Scotia unsuccessfully tried to sell its precious metals business and eventually downsized the department when it couldn't find a buyer. 

Grosskopf said that it is a surprise that Scotia decided to shut down its precious metals desk instead of looking for another buyer. "They had a very prestigious position as one of the top three traders in that business," he said.

- Source, Kitco News

Gold's Got Your Back in More Ways Than One

As we witness the epic collision between deflationary plunges in stock markets and oil vs. unbridled currency dilution by central banks, many long-time earners and savers are filled with dread or confusion about where these forces will leave our our income, our nest-eggs, and our futures. 

Rick Rule, CEO of Sprott Asset Management, returns to Liberty and Finance / Reluctant Preppers to answer viewers’ questions and to declare that there’s more to know about the vital role precious metals can play in our financial well being than many of us may have been told.

- Source, Reluctant Preppers