Latest / Financial Survival Network / Rick Rule Sold Most of His Silver: It's Not What You Think #6373

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Rick Rule Sold Most of His Silver: It's Not What You Think #6373 · Financial Survival Network

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  Speaker 1: You are listening to Carrie Lutz's Financial Survival Network, where
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  Speaker 2: And welcome. You are listening to and watching the Financial
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  Speaker 2: Survival Network. I'm your host, Carrie Lutz. With us today
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  Speaker 2: is our good friend Rick Rule, and we're going to
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  Speaker 2: get the latest on what's happening in precious metals the markets.
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  Speaker 2: Is the bull market in silver and gold over Rick,
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  Speaker 2: It's great to have you on again. And hope all
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  Speaker 2: is well.
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  Speaker 3: Harriet's fair NHDB back and in answer to your question,
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  Speaker 3: things are going quite well.
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  Speaker 2: Thank you. So, you know, like volatility, this is what
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  Speaker 2: really separates pros from the amateurs because if you can't
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  Speaker 2: control your emotions when you see what happened in silver
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  Speaker 2: one hundred and twenty plus dollars announced down to sixty
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  Speaker 2: four in the blink of an eye, and you know,
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  Speaker 2: buckle your seatbelt time. But the newer people investing in
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  Speaker 2: the sector, this kind of movement freaks them out. Let's
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  Speaker 2: face it, they're just not used to this unless they've
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  Speaker 2: been playing bitcoin for more than six months, right.
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  Speaker 3: You know, Carrie. When I was a very young man,
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  Speaker 3: I was actually a pretty good trader. I would try
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  Speaker 3: to trade these short term swings my investment goals. Well,
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  Speaker 3: I was still in university, were you know, want to
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  Speaker 3: trade four snow tires and dinner with a day at
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  Speaker 3: a nice restaurant. I have very focused goals and very
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  Speaker 3: very periods of time, and volatility was useful for me.
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  Speaker 3: Then I learned very young that a chart with a
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  Speaker 3: parabolic up move was going to have an equally sharp retracement,
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  Speaker 3: maybe not for the whole up move, but it was
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  Speaker 3: going to have a very sharp retracement, and a parabolic
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  Speaker 3: down move would also have a correction. Those charts that
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  Speaker 3: the Canadians call hockey stick graphs cause one to understand
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  Speaker 3: that the backside of the stick is just as steep
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  Speaker 3: as the front, but somewhat less fun if you're long.
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  Speaker 3: Now that I'm not a trader, I sort of regard
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  Speaker 3: them as noise. I like, I think you sold most
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  Speaker 3: of my physical silver, and I guess partly about that
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  Speaker 3: volnable move but mostly because the silver that was in
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  Speaker 3: my portfolio was in my portfolio as a consequence of
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  Speaker 3: the fact that silver was a hated asset, and when
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  Speaker 3: it ceased to be a hated asset, the reason that
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  Speaker 3: it was in my speculative account went away. And when
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  Speaker 3: it went away, eighty percent of the silver had to
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  Speaker 3: go away, or didn't have.
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  Speaker 2: To go away.
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  Speaker 3: But I just did, you know, I decided I'd look
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  Speaker 3: somewhere else for hate.
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  Speaker 2: All right, well, I'm going to do a clickbait headline here.
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  Speaker 2: Why is Rick Rule selling his silver?
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  Speaker 3: Why has Rick Rule sold?
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  Speaker 2: Is probably a better solve.
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  Speaker 3: This silver, the you know, the twenty percent I have
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  Speaker 3: left is you know, likely not going to be.
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  Speaker 2: Sold for a while.
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  Speaker 3: I believe, Carrie, that the primary bullmarket in precious metals
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  Speaker 3: has a long time to run. I believe that the
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  Speaker 3: decade that's in front of us resembles in some way,
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  Speaker 3: shape or form, the decade of the nineteen seventies. Specifically,
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  Speaker 3: and I've said this in our interviews before, I believe
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  Speaker 3: the US dollar over ten years loses seventy five percent
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  Speaker 3: of its purchasing power. That's what happened in nineteen seventies.
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  Speaker 3: So I believe that gold and silver have further to run.
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  Speaker 3: I also believe the pace of the run that we
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  Speaker 3: saw in twenty twenty five probably can't be repeated. I
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  Speaker 3: think that late twenty twenty four, late twenty twenty five,
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  Speaker 3: I think the move that you saw in gold and
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  Speaker 3: silver was pent up energy. It was the fact that
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  Speaker 3: gold didn't move in twenty twenty, twenty twenty one, twenty
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  Speaker 3: twenty two, twenty twenty three. And I think most of
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  Speaker 3: the pent up energy, which is to say, most of
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  Speaker 3: the price move that's a consequence of past underperformance, is
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  Speaker 3: now out of the market. So people need to look
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  Speaker 3: forward for the gold trade. If they don't see the
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  Speaker 3: gold trade the way I do, they should decide that
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  Speaker 3: the easy money has been made, take their money off
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  Speaker 3: the table and go somewhere else.
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  Speaker 2: You know, so about that, and you know, looking at
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  Speaker 2: it where you have that major move, And then, for
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  Speaker 2: some reason, we always want to think that this time
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  Speaker 2: is different, that somehow the parabolic move is going to
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  Speaker 2: continue indefinitely into the future, because this time really is different.
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  Speaker 2: But I'm always think back to Benjamin Graham, the tree
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  Speaker 2: does not grow to the sky. Correct. Correct.
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  Speaker 3: It's also useful I think for the generation of players
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  Speaker 3: twenty or thirty years younger than you and I who
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  Speaker 3: didn't experience the decade of the seventies to revisit it
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  Speaker 3: in the sense that in the nineteen seventies, I would suggest,
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  Speaker 3: in response to the deterioration purchasing power of the US dollar,
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  Speaker 3: the gold price ran what twenty fivefold? Yeah, I'm not
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  Speaker 3: suggesting by the way it rose twenty fivefold from here.
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  Speaker 3: What I am suggesting is that in the decade of
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  Speaker 3: the seventies we had at least four twenty five percent
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  Speaker 3: price retrenchments, and we had one in nineteen seventy five
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  Speaker 3: that was a fifty percent ice retrashment.
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  Speaker 2: I actually remember that, Yeah.
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  Speaker 3: As do I. I remember from alongside it was not
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  Speaker 3: particularly pleasant for young men. But the lesson in all
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  Speaker 3: this is that cyclicality and volatility are inherent in bull markets,
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  Speaker 3: and if you weren't financially and psychologically prepared for it,
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  Speaker 3: you're going to get shaken out. People who got shaken
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  Speaker 3: out in nineteen seventy five. For history's sake, I should
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  Speaker 3: recount the facts. In the period nineteen seventy to early
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  Speaker 3: nineteen seventy five, the gold price ran from thirty five
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  Speaker 3: dollars admittedly priced controlled to two hundred dollars, and that
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  Speaker 3: move at sixfold move attracted a lot of adherence, And
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  Speaker 3: nineteen seventy five the gold price fell from two hundred
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  Speaker 3: dollars to one hundred dollars, and the newly faithful wish
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  Speaker 3: they'd never learned how to spell gold. Those who got
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  Speaker 3: shaken out at one hundred moved to move from one
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  Speaker 3: hundred to eight hundred and fifty over the next five years.
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  Speaker 3: There's all kinds of lessons there.
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  Speaker 2: And then the two thousand, it was back down to
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  Speaker 2: just under three hundred bucks, not till nineteen ninety nine.
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  Speaker 2: I bought you eight six, if I recall, yes, I
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  Speaker 2: got in there to eighty eight, so n nice print,
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  Speaker 2: and I wrote it up and then down. But in
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  Speaker 2: some respects this time really is different, at least for silver,
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  Speaker 2: because we genuinely have structural deficits and booming demand. Does
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  Speaker 2: it make it different? Does it put a floor under
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  Speaker 2: silver that we wouldn't otherwise normally have if this was
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  Speaker 2: just a normal market to run up.
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  Speaker 3: I'm too old. I'm too old and smart to answer
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  Speaker 3: that question. Yes or no, fashion we'll talk around it.
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  Speaker 3: I've been trying to understand the silver market since the
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  Speaker 3: early nineteen seventies at the University of British Coal Umbia.
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  Speaker 3: Maybe I'm a dumb guy, but after fifty five years
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  Speaker 3: of trying, I understand that I don't understand.
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  Speaker 2: Here's a few problems. That's knowledge.
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  Speaker 3: On the supply side, we don't really know what the
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  Speaker 3: above ground supplies are. We know what the above ground
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  Speaker 3: good delivery supplies are, but we know really nothing statistical
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  Speaker 3: about informal ownership in India, Pakistan, by Gladesh and Sri Lanka.
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  Speaker 3: Is it a billion and a half ounces? Is it
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  Speaker 3: three billion ounces? We do know that saving in silver
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  Speaker 3: has been part of the rural Indian culture, rural South
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  Speaker 3: Asian culture, I should say, for a thousand years yea.
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  Speaker 3: And they distrusted their government before we had a government.
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  Speaker 3: So there's a lot of supply that can come out
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  Speaker 3: in the right sort of circumstances. In terms of forwards
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  Speaker 3: looking supply the deficit, we know that silver miners produce
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  Speaker 3: eighteen percent of annual supply. The rest comes from byproducts
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  Speaker 3: of other materials and recycling. So the silver price doesn't
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  Speaker 3: necessarily stimulate supply. You have to look to the copper
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  Speaker 3: press and seek price led price and the cold price.
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  Speaker 3: It is really tough to get a handle on a
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  Speaker 3: silver market. Folks who trade news don't trade the whole news.
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  Speaker 3: People went crazy with the export restrictions announced by the Chinese,
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  Speaker 3: But the Chinese said that they were going to restrict
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  Speaker 3: silver exports to authorized exporters. They issued forty two export
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  Speaker 3: licenses to politically connected traders, which is to say this
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  Speaker 3: is more rent seeking than it is market control. It's
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  Speaker 3: important in markets like these carry for the people who
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  Speaker 3: are in trade news, which usually doesn't work in my experience,
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  Speaker 3: to read the whole article, not just the headline, before
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  Speaker 3: they try to trade on it. So that long soliloquy
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  Speaker 3: all goes to say an answer to your question, I
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  Speaker 3: don't know, but.
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  Speaker 2: It certainly appears though that industrial demand is way higher
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  Speaker 2: than it was like in nineteen sixty five when they
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  Speaker 2: demonetized our coinage. That part is very true.
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  Speaker 3: Now industrial demand becomes price sensitive at some point. The
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  Speaker 3: silver's reflective properties means that the point with regards to
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  Speaker 3: solar panels probably substantially higher than now, unless there's some
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  Speaker 3: technological breakthrough what we see in passbow markets. I'm not
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  Speaker 3: suggesting that past has to repeat itself. What we see
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  Speaker 3: in passbol markets is that industrial utilization of silver has
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  Speaker 3: continued except for a five year period after the use
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  Speaker 3: of photography of silver and.
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  Speaker 2: Photography and that's raise.
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  Speaker 3: Yeah, that created a real slump, but it would appear
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  Speaker 3: with the germicidal properties of silver, the applications in water
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  Speaker 3: and wastewater treatment, and particularly with regards to solar that
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  Speaker 3: industrial demand for silver for a while grows and grows
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  Speaker 3: and grows. We also know from studying history, though, that
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  Speaker 3: dramatic price moves in silver haven't occurred as a consequence
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  Speaker 3: of industrial demand. They've occurred in precious metals bull markets
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  Speaker 3: after the leadership of gold in those markets, the momentum
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  Speaker 3: of gold attracted generalist investors into precious metals markets. That's
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  Speaker 3: what's happened to the last three markets. At some point in
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  Speaker 3: time in that market when the generalist comes into the
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  Speaker 3: market leadership in terms of price momentums, which is from
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  Speaker 3: gold to silver, and we saw that happen in spades
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  Speaker 3: in twenty twenty five. Yeah, whether or not there's going
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  Speaker 3: to be a pylon with regards to industrial demand remains
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  Speaker 3: to be seen. But the condition present for a silver
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  Speaker 3: price move, which has occurred in every precious metals bull
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  Speaker 3: market in my life has occurred.
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  Speaker 2: So but yeah, I see your point and I understand it,
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  Speaker 2: but it does seem like, well, let's go over three
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  Speaker 2: stories that are circulating in the self market right now.
• 12:01
  Speaker 2: Number one is Samsung has created a battery that is
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  Speaker 2: the greatest thing since sliced bread. You'll get one thousand
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  Speaker 2: miles on your ev The negative is it gobbles up
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  Speaker 2: silver like nothing else before it. Number two is the
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  Speaker 2: Chinese whale who made three billion dollars as in trading gold,
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  Speaker 2: and as best as I can tell, he's real, and
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  Speaker 2: he did have a short position, but we don't know
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  Speaker 2: the other side. We don't know if he was doing spreads,
• 12:34
  Speaker 2: cross market arbitraging. We have no idea what this guy
• 12:37
  Speaker 2: was doing, but he did have a short position. And
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  Speaker 2: number three is somehow JP Morgan has accumulated a short
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  Speaker 2: position of six point two billion ounces of silver, which
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  Speaker 2: is enough to basically destabilize the global financial system. That
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  Speaker 2: tells you something about what part of the cycle we're
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  Speaker 2: in as well, because these stories they're just recycled and
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  Speaker 2: brought up to date, right, and we could add two
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  Speaker 2: to those.
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  Speaker 3: A gold discovery in Uganda that apparently is equal to
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  Speaker 3: half the gold ever produced in the history of mankind.
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  Speaker 3: I spend a fair bit of time at Uganda, and
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  Speaker 3: that deposit has missed me as well as every professional
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  Speaker 3: geologist in Africa. And a similar discovery apparently has been
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  Speaker 3: made in China, a gold discovery that numbers in the
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  Speaker 3: hundreds of millions of ounces. There's a word for this
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  Speaker 3: in English. It's horseshit. I can't speak to the Chinese
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  Speaker 3: whale because I don't follow traders. This whale may, as
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  Speaker 3: you suggest, as you suggest, exist the idea that he's
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  Speaker 3: going to telegraph his short position, or that somebody is
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  Speaker 3: going to know about his short position, if he's that
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  Speaker 3: good at trader. The probability of that, I think is mil.
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  Speaker 3: As to a six billion ounce short position by JP
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  Speaker 3: Morgan Chase, that one is pretty simple. With any access
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  Speaker 3: to the ced our database. The statement of financial condition
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  Speaker 3: for JP Morgan Chase is available For those people who
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  Speaker 3: don't want to do that, Let me tell you something
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  Speaker 3: about my experience on Wall Street, which is deep. The
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  Speaker 3: only thing that matters on Wall Street to employees of
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  Speaker 3: Wall Street is quarterly cash bonuses. Nothing else matters. Systemic
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  Speaker 3: short positions that cause an interest to be payable as
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  Speaker 3: opposed to receivable reduces quarterly cash bonuses. The people who
• 14:38
  Speaker 3: are listening to this need to repeat after me. Nothing
• 14:42
  Speaker 3: that reduces quarterly cash bonuses is allowable on Wall Street.
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  Speaker 3: Interest is to be received. There needs to be a
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  Speaker 3: net interest spread so that cash is generated, so that
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  Speaker 3: cash can be distributed. A six billion ounce short position
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  Speaker 3: would require I don't know, it would acquire at least
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  Speaker 3: the derivatives borrowing billions and billions and billions of dollars,
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  Speaker 3: and JP Morgan Chase would have to post margin collateral
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  Speaker 3: on those billions of dollars, which would cost cash, which
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  Speaker 3: would reduce quarterly cash bonuses. Any story that you read
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  Speaker 3: about a systemic short position on Wall Street going after
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  Speaker 3: years or decades, you can automatically negate because it reduces
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  Speaker 3: or eliminates quarterly cash bonuses. People work on top of
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  Speaker 3: Wall Street for quarterly cash bonuses.
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  Speaker 2: And year ends.
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  Speaker 3: Yeah that's right, but you know most of them aren't
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  Speaker 3: that far sighted.
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  Speaker 2: Yeah, yeah, that's for sure at the quarterly mindset. So
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  Speaker 2: now that silver has loved, what other resources can we
• 16:02
  Speaker 2: look at? That are still hated.
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  Speaker 3: It's getting scarce. You know, a sulfid nickel is aided.
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  Speaker 3: If you would talked to me four months ago, I
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  Speaker 3: would have said oil and gas. I was a wild
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  Speaker 3: buyer of excellent at one hundred. I'm a little less
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  Speaker 3: wild at one hundred and sixty. I think the oil
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  Speaker 3: trade is actually ahead of itself. I think it has
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  Speaker 3: a long way to go, but I think it goes
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  Speaker 3: lower before it goes higher. There are some sub sectors
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  Speaker 3: that I like. Mostly I've been expressing my love for
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  Speaker 3: oil and gas, or rather my love for the hate
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  Speaker 3: surrounding oil and gas and the great big companies because
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  Speaker 3: I thought they were cheap. What's happened to me, very
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  Speaker 3: very very recently is I found my portfolio way out
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  Speaker 3: of balance to beta, away from alpha. And there is
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  Speaker 3: a speculative subclass, which is companies with sub two hundred
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  Speaker 3: and fifty million dollar market capitalization that are involved in
• 17:05
  Speaker 3: offshore conventional exploration rather than onshore shale plays, yeah, which
• 17:10
  Speaker 3: are what the market likes in Third world emerging in
• 17:14
  Speaker 3: frontier markets. All of the speculative premium that surrounded that
• 17:19
  Speaker 3: sector for the last forty years. It was a very
• 17:21
  Speaker 3: good sector for me. By the way, all that speculative.
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  Speaker 2: Premium is gone.
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  Speaker 3: So very recently, I've assembled at portfolio personally, and I'm
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  Speaker 3: not going to name the names because I'm still assembling
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  Speaker 3: that portfolio and I don't want ten thousand of your
• 17:33
  Speaker 3: listeners competing with me. But the five companies share similar characteristics.
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  Speaker 3: First of all, there is somebody in management or on
• 17:42
  Speaker 3: the board who I know and love and trust, so
• 17:44
  Speaker 3: that the information I get, while not inside information, is
• 17:47
  Speaker 3: certainly nuanced and good. The second is that their projects
• 17:54
  Speaker 3: have to have analogous production in the same base, in
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  Speaker 3: the same trend, and they have to be well seismically supported.
• 18:01
  Speaker 3: And the third characteristic is that the seismic signature has
• 18:05
  Speaker 3: to be big enough that if by some odd chance
• 18:10
  Speaker 3: I'm successful with the well, that I get a fifteen
• 18:13
  Speaker 3: or twenty to one return. The arithmetic on that speculation
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  Speaker 3: goes like this. These seismically supported big structures with analogs
• 18:24
  Speaker 3: have a twenty five to thirty five percent probability of success.
• 18:28
  Speaker 3: So if you're taking five starts, you have a statistical
• 18:33
  Speaker 3: probability of one success. If you lose thirty five to
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  Speaker 3: forty percent of your money on the four unsuccessful tests,
• 18:43
  Speaker 3: and you make fifteen or twenty to one on the
• 18:45
  Speaker 3: one successful test. When you aggregate all that arithmetic, you
• 18:49
  Speaker 3: have a pretty good outcome if you have the emotional
• 18:54
  Speaker 3: and financial wherewithal to stand the trade, particularly stand the
• 18:59
  Speaker 3: trade against all odds. You strike out, you go five
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  Speaker 3: or five bad.
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  Speaker 2: Yeah. Well, oil exploration is a whole different animal than
• 19:08
  Speaker 2: it was kind of twenty years ago. At the risk
• 19:13
  Speaker 2: of dry wells, you know, is mini school compared to then, right,
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  Speaker 2: much lower.
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  Speaker 3: When I was involved in exploration, well for my employer's account,
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  Speaker 3: not for mine, I didn't have account. Then these deep
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  Speaker 3: wildcat wells on shore had a ten percent probability of success. Now,
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  Speaker 3: these much more expensive offshore shore wells have a twenty
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  Speaker 3: five to thirty five percent probability success provided that there's
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  Speaker 3: good seizmic coverage and there's a producing analog.
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  Speaker 2: Yeah, and if you've got a good guy on the
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  Speaker 2: rig there, it's even higher.
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  Speaker 3: Right, Well, that could be I'm you know, one can
• 19:56
  Speaker 3: assume that somebody who's manning a rig for x On
• 19:58
  Speaker 3: or Shell Hotel, what would guess they're pretty good?
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  Speaker 2: Yeah for sure. All right, So these foreign deep water explorers.
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  Speaker 3: In in countries that most people hate or can't spell
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  Speaker 3: or pronounce.
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  Speaker 2: And can't find on the globe, right, correct, correct, I
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  Speaker 2: have no idea where they're at. So what about gold
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  Speaker 2: and silver miners? Now gold miners are printing money? Is
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  Speaker 2: that going to continue or are we going to retrace?
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  Speaker 3: What's going to be well in the very near term.
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  Speaker 3: What intrigues me is I keep sitting in on conference
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  Speaker 3: calls and reading Bay Street and Wall Street research, and
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  Speaker 3: the earnings estimates are based on thirty two, thirty three,
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  Speaker 3: thirty five hundred dollars gold. If you're selling gold for
• 20:56
  Speaker 3: five thousand bucks and the estimate has you selling gold
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  Speaker 3: for thirty five hundred bucks, it's pretty likely that you're
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  Speaker 3: going to surprise folks.
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  Speaker 2: Yeah, I would say good shales of that.
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  Speaker 3: One of the things I did, Carrie, when I sold
• 21:11
  Speaker 3: my silver is I redeployed half the money into silver stocks,
• 21:15
  Speaker 3: high quality ones.
• 21:16
  Speaker 2: Here's why.
• 21:18
  Speaker 3: If from seventy five dollars is an example, silver traded
• 21:22
  Speaker 3: sideways for a year, which I don't think is unlikely
• 21:25
  Speaker 3: by definition of silver trade sideways, I don't make any
• 21:27
  Speaker 3: money on it, right, right, But if silver maintains seventy
• 21:31
  Speaker 3: five dollars in trade sideways. Given the fact that the
• 21:34
  Speaker 3: earnings estimates for the silver companies are predicated on forty
• 21:37
  Speaker 3: five dollars silver, if you make the stuff for seventy
• 21:40
  Speaker 3: five as opposed to a forty five dollars estimate, you
• 21:43
  Speaker 3: do pretty well, and it causes Wall Street and Bay
• 21:46
  Speaker 3: Street to redo their net present value calculations. So it's
• 21:49
  Speaker 3: not unlikely if a seventy five dollars price environment is maintained,
• 21:53
  Speaker 3: that the silver stocks are up by forty five or
• 21:55
  Speaker 3: fifty percent even while silver goes sideways. So ironically, if
• 21:59
  Speaker 3: the silver price falls, the net present value calculations probably
• 22:04
  Speaker 3: don't change much because from seventy five dollars to forty
• 22:09
  Speaker 3: five dollars, that forty five dollars is the basis of
• 22:12
  Speaker 3: the existing net present value calculations. So it's a very interesting,
• 22:16
  Speaker 3: very asynchronous bet.
• 22:19
  Speaker 2: And yeah, it really is because your downside is limited
• 22:23
  Speaker 2: because basically you wind up with what you have now.
• 22:26
  Speaker 2: But if the price shows any strength, any resilience, which
• 22:32
  Speaker 2: I think you're probably correct, I mean, I don't want
• 22:34
  Speaker 2: to predict silver prices. It's easier to predict trend than
• 22:38
  Speaker 2: so than the actual price. For sure, but yeah, if
• 22:41
  Speaker 2: it just stays where it's at, these guys print money.
• 22:45
  Speaker 2: So and that's the lag time between the price appreciating
• 22:53
  Speaker 2: and then the downstream effects being understood by Wall Street.
• 22:58
  Speaker 2: And this is something that happens a lot, doesn't it.
• 23:01
  Speaker 2: It does.
• 23:02
  Speaker 3: Now your listeners need to understand that this is a
• 23:05
  Speaker 3: strategy that doesn't play it over a long weekend. I'm
• 23:09
  Speaker 3: talking about arithmetic, and arithmetic always lags narrative, which is
• 23:14
  Speaker 3: to say, if the silver price fell from seventy five
• 23:16
  Speaker 3: dollars to forty five dollars, although the silver stocks would
• 23:20
  Speaker 3: be appropriately valued, they probably would fall in price for
• 23:25
  Speaker 3: a year or eighteen months because the narrative would be
• 23:28
  Speaker 3: that silver was a bad place. People wouldn't look at
• 23:31
  Speaker 3: the industry's free cashle at forty five dollars or the
• 23:34
  Speaker 3: net present value of future casuals at forty five dollars.
• 23:37
  Speaker 3: They would look at the fact that the silver price
• 23:39
  Speaker 3: and silver stocks fell, and they would react to the
• 23:42
  Speaker 3: narrative rather than an arithmetic fashion. Eighteen months or let's
• 23:48
  Speaker 3: call it thirty months from here cures that, which is
• 23:51
  Speaker 3: to say, over time, the narrative has to surrender to arithmetic.
• 23:56
  Speaker 3: But it doesn't surrender to arithmetic in a timeframe that's
• 23:59
  Speaker 3: aw and suitable for speculators.
• 24:02
  Speaker 2: Yeah. Interesting thing is in the nineteen sixty silver was
• 24:06
  Speaker 2: ninety cents an ounce, you know, so I'd say the
• 24:10
  Speaker 2: price of silver is more than kept up with whatever
• 24:13
  Speaker 2: the real rate of inflation is, which will never know
• 24:17
  Speaker 2: because it's impossible to know and be because even if
• 24:20
  Speaker 2: they did know, they wouldn't tell us.
• 24:22
  Speaker 3: Right right, you know, that's something we should talk about, Carrie.
• 24:30
  Speaker 3: The even listeners of yours, let's just say they're far
• 24:37
  Speaker 3: enough off main Street to listen to you, very.
• 24:40
  Speaker 2: Far off, Like they took a turn. They took a
• 24:43
  Speaker 2: turn off main Street and they never found it. They
• 24:46
  Speaker 2: never got back again.
• 24:47
  Speaker 3: Yeah, And whether that was rational or bourbon infused. Even
• 24:51
  Speaker 3: your listeners, I think many of them conflate the CPI
• 24:57
  Speaker 3: with the rate of deterioration of the US dollar, and
• 25:00
  Speaker 3: that's wrong. We have been conditioned by this factoid called
• 25:05
  Speaker 3: the CPI. The CPI is an example when it's inconvenient
• 25:10
  Speaker 3: doesn't include.
• 25:10
  Speaker 2: Food or fuel.
• 25:11
  Speaker 3: If somebody saw both you and I walking down the hall,
• 25:14
  Speaker 3: they would conclude that an index that didn't include lunch
• 25:17
  Speaker 3: was of no interest to you.
• 25:18
  Speaker 2: Or I, I mean.
• 25:21
  Speaker 3: Arithmetically, I would urge your listeners to do a back
• 25:27
  Speaker 3: of the envelope fact check and ask themselves in the period,
• 25:31
  Speaker 3: say twenty twenty to twenty twenty six, whether the basket
• 25:37
  Speaker 3: of goods and services that their household consumes has only
• 25:41
  Speaker 3: become two point six percent more expensive year on year.
• 25:45
  Speaker 3: This is insane, I mean, this is truly insane. I
• 25:49
  Speaker 3: did the calculation myself informally. You know, I didn't audit
• 25:53
  Speaker 3: every purchase I made, but I looked at things like
• 25:57
  Speaker 3: health insurance, car as you're on mortgage interests, you know,
• 26:01
  Speaker 3: things like that. It would appear. And by the way,
• 26:04
  Speaker 3: I'm a little cheap skate, I don't buy much, but
• 26:08
  Speaker 3: it would appear to me that the deterioration in the
• 26:12
  Speaker 3: purchasing power of my savings relative to the basket of
• 26:15
  Speaker 3: goods and services I buy, it would appear that the
• 26:19
  Speaker 3: deterioration value is between eight and ten percent, not two
• 26:24
  Speaker 3: point six. That becomes problematic for people, because people who
• 26:30
  Speaker 3: are planning their life for the next ten years against
• 26:36
  Speaker 3: a two point six percent deterioration they're purchasing power, are
• 26:40
  Speaker 3: going to make an enormous enormous mistake. I mean, I
• 26:47
  Speaker 3: really think it's important that when people think about how
• 26:51
  Speaker 3: they're going to sustain themselves for the next twenty years,
• 26:54
  Speaker 3: that they ignore the CPI and think about a number
• 26:57
  Speaker 3: that's closer to their own experience in the decade of
• 27:00
  Speaker 3: the seventies, which you and I remember, Carrie, but many
• 27:03
  Speaker 3: of our contemporaries don't remember. The basket of goods and
• 27:07
  Speaker 3: services that one could acquire in nineteen seventy for one
• 27:10
  Speaker 3: thousand dollars cost four thousand dollars by nineteen eighty. If
• 27:15
  Speaker 3: you were living on a fixed income, or if you
• 27:19
  Speaker 3: had your savings deposited in a bank account, earning four
• 27:24
  Speaker 3: point two or four point three against twelve percent inflation,
• 27:29
  Speaker 3: you've had a very ugly experience in the decade of
• 27:33
  Speaker 3: the nineteen seventies, and I would ask for your listeners
• 27:37
  Speaker 3: to think about their own financial plan in that context.
• 27:43
  Speaker 2: That's so true. You know, the numbers do not reflect
• 27:48
  Speaker 2: reality by any stretch. But interestingly enough, in you know,
• 27:54
  Speaker 2: in nineteen seventy, I think it was two silver dimes
• 27:58
  Speaker 2: bought a gallon of as, and now two silver dimes
• 28:04
  Speaker 2: by like, I don't know, I did the math I
• 28:06
  Speaker 2: think it's six or eight gallons of gas, which in
• 28:11
  Speaker 2: itself tells you a lot. Now, obviously there were times
• 28:14
  Speaker 2: when the purchasing power of physical metal actually declined, like
• 28:20
  Speaker 2: I think in nineteen eighty or ninety, I don't remember,
• 28:24
  Speaker 2: but it actually declined. But those were anomalies, yep, in
• 28:29
  Speaker 2: the course of time. So that tells you a lot
• 28:33
  Speaker 2: right there.
• 28:33
  Speaker 3: Well, certainly twenty eleven to twenty thirteen there was a
• 28:38
  Speaker 3: real dump in metals prices and in the real purchasing
• 28:42
  Speaker 3: power of metals, perhaps by fortuitous luck, but I hope
• 28:49
  Speaker 3: my experience. I began to save let me rephrase that,
• 28:57
  Speaker 3: I began to incorporate a substantial amount of gold in
• 29:02
  Speaker 3: my savings, maintaining liquidity in US dollars and maintaining liquidity
• 29:08
  Speaker 3: and gold too. But really my permanent savings became more
• 29:12
  Speaker 3: and more gold dependent. Interestingly, about six months ago, I
• 29:18
  Speaker 3: have some of my money managed by a multi family office,
• 29:21
  Speaker 3: and I've told him they can do anything they want
• 29:23
  Speaker 3: except for precious metals and natural resources. In other words,
• 29:25
  Speaker 3: I want that part of my portfolio out of my
• 29:28
  Speaker 3: own out of my own harm's way. And I sat
• 29:32
  Speaker 3: down with the portfolio manager there who has always been
• 29:35
  Speaker 3: interested in my portfolio. He does what I do, and
• 29:39
  Speaker 3: I asked him not to do what I do in
• 29:40
  Speaker 3: my own portfolio. And he showed me how much more
• 29:44
  Speaker 3: affordable things are for me as an example of being
• 29:49
  Speaker 3: on the Golden constant. He showed me an index of
• 29:53
  Speaker 3: the S and P five hundred. He showed me an
• 29:55
  Speaker 3: index of home prices. Yeah, you know, he said, interestingly, Rick,
• 30:01
  Speaker 3: for you, really things are much cheaper than they were
• 30:06
  Speaker 3: in the year two thousand and I thought of it
• 30:08
  Speaker 3: in that context, but it's wild.
• 30:11
  Speaker 2: I'm actually doing a report, not to plug it here,
• 30:14
  Speaker 2: but tracing the purchasing power of silver, gold and the
• 30:19
  Speaker 2: US dollar on things like cars, houses, Thanksgiving meal Like
• 30:25
  Speaker 2: a Thanksgiving meal used to be like an ounce of
• 30:29
  Speaker 2: silver back in the sixties. Bought a Thanksgiving meal Right now,
• 30:34
  Speaker 2: an ounce of silver buys a multiple meals, you know, good,
• 30:39
  Speaker 2: half a week's worth of meals. It's a fascinating study
• 30:43
  Speaker 2: that I don't think is done enough. I'm calling it
• 30:46
  Speaker 2: living the silver backed lifestyle? Are you? And yeah, it'll be.
• 30:52
  Speaker 2: It's just a fun exercise for all you subscribers out there. Hey,
• 30:56
  Speaker 2: this discussion would not be complete without a discussion of AI,
• 31:02
  Speaker 2: because we're both very aligned on it. You know, it's
• 31:06
  Speaker 2: worse than garbage in garbage out. It's like garbage in
• 31:11
  Speaker 2: and you don't know what is going to come. You
• 31:14
  Speaker 2: said it, and I had said it myself that if
• 31:17
  Speaker 2: you don't ask it the right questions, you're never going
• 31:20
  Speaker 2: to get the right answer. And the ability to ask
• 31:23
  Speaker 2: it the right questions isn't something you can just pick up.
• 31:29
  Speaker 2: It's something you have to suffer through a lifetime of
• 31:32
  Speaker 2: investment mistakes and catastrophes to really know what to ask
• 31:38
  Speaker 2: it right.
• 31:40
  Speaker 3: I would say in my hands, until a year ago,
• 31:42
  Speaker 3: AI stood for artificial idiocy. What AI did when I
• 31:47
  Speaker 3: asked it a general question before I knew how to
• 31:49
  Speaker 3: constrain it, was it would search for consensus opinion on X.
• 31:54
  Speaker 3: In other words, it was a compendium of the beliefs
• 31:58
  Speaker 3: of every more on the planet, which was not of
• 32:02
  Speaker 3: particular use to make. The more recent versions of AI,
• 32:07
  Speaker 3: if you understand how to constrain them, are miraculous. My
• 32:12
  Speaker 3: partner in the real classroom, Albert lou.
• 32:16
  Speaker 2: Who is you know?
• 32:18
  Speaker 3: He was a semiconductor engineer, became before he came over
• 32:20
  Speaker 3: to the dark side, he's really pretty good at technology,
• 32:24
  Speaker 3: he said, Rick, you know we're educating AI with your
• 32:29
  Speaker 3: YouTube talks, Yes, and with a lesson from the classroom,
• 32:33
  Speaker 3: and pretty soon I'll be able to duplicate and fire you.
• 32:38
  Speaker 3: You will become redundant because AI will be better at
• 32:43
  Speaker 3: your mannerisms and your equips that you are. The great
• 32:47
  Speaker 3: quips that you had twenty f says, the great quips
• 32:49
  Speaker 3: that you had twenty five years ago. Rick, you've forgotten,
• 32:52
  Speaker 3: but AI hasn't, and they'll be able to. They'll be
• 32:55
  Speaker 3: able to recycle those quips into today's circumstance, and AI
• 32:59
  Speaker 3: will be a much better Rick rule and Rick rule.
• 33:02
  Speaker 2: Well, I mean, you're still coming up with quips. Creativity
• 33:07
  Speaker 2: aspect is interesting, but the ability, I mean, I watch
• 33:12
  Speaker 2: good amount of youtubees and I have to be totally
• 33:16
  Speaker 2: on guard to see if it's an AI. There's certain
• 33:20
  Speaker 2: ones that are so so good that I just have
• 33:25
  Speaker 2: to know. And then they're going back to historical stuff,
• 33:30
  Speaker 2: different works that people did, and they're creating new works
• 33:34
  Speaker 2: and quoting them and if you didn't read the original,
• 33:37
  Speaker 2: you wouldn't know that this was all fake. And in fact,
• 33:41
  Speaker 2: I had to use AI to prove that something was fake,
• 33:45
  Speaker 2: because I knew it wasn't. Right now, I uncovered a scam,
• 33:49
  Speaker 2: a nationwide scam. I'm dropping a book next week. And
• 33:55
  Speaker 2: this is the cover of the book, and it's America's
• 34:00
  Speaker 2: rate parking scam. You've been robbed. And basically it's like
• 34:07
  Speaker 2: I didn't even know this until I use the AI.
• 34:09
  Speaker 2: But there's a standard for signs on the highways that's
• 34:13
  Speaker 2: federally mandated, that's been adopted by every single state. It
• 34:17
  Speaker 2: includes parking signs. They're called traffic control devices. That's signs
• 34:22
  Speaker 2: that stop signs, traffic lights, flashing lights, lines on the ground,
• 34:28
  Speaker 2: all of this, it's all standardized, and everything is paid
• 34:33
  Speaker 2: attention to except parking. Nobody cares about parking signs. So
• 34:38
  Speaker 2: I'm dropping this book. I'm starting a lawsuit on it
• 34:41
  Speaker 2: because I just I'm tired of the parking grift and
• 34:45
  Speaker 2: the nickel and diming of the government. But without AI,
• 34:49
  Speaker 2: I would have never discovered this, or it would have
• 34:51
  Speaker 2: taken me years to figure it out. All of this
• 34:55
  Speaker 2: is encompassed in this book, complements of the US Department
• 35:01
  Speaker 2: of Transportation, the Federal Highway Administration. It's only about twelve
• 35:07
  Speaker 2: hundred pages thick. If I had to read that frickin
• 35:10
  Speaker 2: thing to find all this would have never happened. So
• 35:14
  Speaker 2: when you talk about Albert and you yourself and the
• 35:18
  Speaker 2: way if you use it properly, it is a force multiplier.
• 35:23
  Speaker 2: And I tend to think that it's consumption of silver
• 35:27
  Speaker 2: by AI is not all they're saying it is. I
• 35:31
  Speaker 2: think it's exaggerated, but it sounds good in the media, right.
• 35:36
  Speaker 3: Yep.
• 35:37
  Speaker 2: You know.
• 35:39
  Speaker 3: One very interesting thing that I've seen. When I first
• 35:45
  Speaker 3: came into financial services, I was an intern, which is
• 35:49
  Speaker 3: finance speak for slave to a wonderful, wonderful, legendary value
• 35:55
  Speaker 3: investor named Peter Kundall, and working for Peter Kundall five
• 36:00
  Speaker 3: years of quarterly reports physically remove the staples and lay
• 36:04
  Speaker 3: them out along the a long conference table.
• 36:07
  Speaker 2: Oh you know, and dating yourself. Yeah.
• 36:11
  Speaker 3: Peter Kundle was a great fan of the ben Gram
• 36:14
  Speaker 3: net net sort of thing. So you'd look for companies
• 36:17
  Speaker 3: that were selling the discounts to the value of their
• 36:20
  Speaker 3: working capital, and you would take weeks doing this. In
• 36:26
  Speaker 3: one industry, doing comparative net present value calculations could take
• 36:31
  Speaker 3: six weeks. We not me, but a young person who's
• 36:36
  Speaker 3: a member of the rural classroom, helped me do this
• 36:40
  Speaker 3: very recently. With AI, she said, search exchange databases worldwide
• 36:49
  Speaker 3: and give me a list of every company in the
• 36:52
  Speaker 3: world that has negative enterprise value in other words, a
• 36:55
  Speaker 3: company where the market capitalization and their debt was less
• 37:00
  Speaker 3: and the value of their current assets either inventory or cash.
• 37:03
  Speaker 3: Right where those companies are cash flow positive in other words,
• 37:06
  Speaker 3: where they're not falling knives. Yeah, And AI churned around
• 37:10
  Speaker 3: for about three minutes. Three minutes it took that long, huh,
• 37:14
  Speaker 3: and produced a list of seventy companies.
• 37:17
  Speaker 2: Seventy. I can't believe there's seventy net nets floating around
• 37:21
  Speaker 2: in the world. Well there.
• 37:22
  Speaker 3: I mean, what AI isn't very good at right now
• 37:26
  Speaker 3: is searching for extraneous problems like lawsuits hanging over them,
• 37:31
  Speaker 3: stuff like that. But the fact that it could find
• 37:34
  Speaker 3: seventy companies worldwide that were nominally at least cash flow
• 37:38
  Speaker 3: positive with negative enterprise value, yeah, astonished me. There's wartz
• 37:44
  Speaker 3: by the way, you know, there's probably ten in Japan
• 37:47
  Speaker 3: that are eighty percent controlled by one family, so you know,
• 37:52
  Speaker 3: you can't get much benefit out of that.
• 37:56
  Speaker 2: But lawsuit risk is good As a lawyer. I can judge,
• 38:02
  Speaker 2: I can value lawsuit risk, especially using AI. Some of
• 38:08
  Speaker 2: the best hits I've ever had were lawsuits where the
• 38:12
  Speaker 2: stock was artificially depressed, like TVO dating myself here there
• 38:18
  Speaker 2: was trading for nothing, and they won their lawsuit, which
• 38:21
  Speaker 2: I knew they would, and then they won their appeal
• 38:24
  Speaker 2: and it went up tenfold. So yeah, it's spectacularly what
• 38:29
  Speaker 2: you could do. And I don't really think AI needs
• 38:31
  Speaker 2: as much silver as they're claiming it needs.
• 38:34
  Speaker 3: You know, my hope, Carrie. I think you know that
• 38:38
  Speaker 3: I spend a lot of money maintaining the database of
• 38:42
  Speaker 3: public companies in the natural resource business, and we use
• 38:46
  Speaker 3: those well, we use them for my own account, but
• 38:48
  Speaker 3: we also use them to rank portfolios as a free
• 38:50
  Speaker 3: service for people and young people in the real classroom
• 38:56
  Speaker 3: and at the Colorado School of Minds believe that they
• 39:01
  Speaker 3: can automate about ninety five for sure that database. For me,
• 39:06
  Speaker 3: I'm spending right now about three hundred and fifty thousand
• 39:09
  Speaker 3: dollars a year on that database on consultants.
• 39:14
  Speaker 2: Oh, there's no question I could do it. There's no question,
• 39:17
  Speaker 2: because you've got a starting point. If you didn't have
• 39:21
  Speaker 2: anything and you wanted to assemble it, it would be
• 39:23
  Speaker 2: a bigger challenge. But it's running now, so it's just
• 39:27
  Speaker 2: creating agents to do all.
• 39:29
  Speaker 3: That stuff like that has it has now a thirty
• 39:33
  Speaker 3: five year history of upgrades and downgrades, so they can
• 39:37
  Speaker 3: artificial artificially reassemble three decades of thought process.
• 39:41
  Speaker 2: Yes, yeah, it's it's spectacular. So it is the future.
• 39:46
  Speaker 2: Do you think it's going to have these humongous job
• 39:49
  Speaker 2: displacements that they're predicting.
• 39:52
  Speaker 3: I think so yeah, I do, which is, you know,
• 39:57
  Speaker 3: probably not all bad. You free up people to do
• 40:00
  Speaker 3: something that generates more value for society. I mean, certainly
• 40:05
  Speaker 3: the young analyst Rick Rule, the young slave working for
• 40:09
  Speaker 3: Peter Kundle, would have been replaced, but Rick Rule's ability
• 40:14
  Speaker 3: to understand how to ask it questions.
• 40:18
  Speaker 2: Can't be replaced. Yeah, we can.
• 40:20
  Speaker 3: Just unbelievable. So, I mean, I think for people who
• 40:27
  Speaker 3: Robert Reich would have described as symbolic workers, knowledge workers,
• 40:33
  Speaker 3: AI will be truly a thing of beauty. For people
• 40:37
  Speaker 3: who don't think a lot about their work, They just
• 40:39
  Speaker 3: try to show up and make some money. That is
• 40:42
  Speaker 3: not going to have a happy outcome for them.
• 40:44
  Speaker 2: And I'll tell you you know, I've had Tesla for
• 40:47
  Speaker 2: years and the full self driving. According to the stats
• 40:53
  Speaker 2: on the car, and I think they're conservative. It says
• 40:56
  Speaker 2: the FSD is driving ninety five percent of the time.
• 41:00
  Speaker 2: I think it's closer to ninety eight or ninety nine
• 41:03
  Speaker 2: because I hardly ever drive. And I will confess to
• 41:06
  Speaker 2: actually having fallen asleep in the car when it's driving.
• 41:10
  Speaker 2: Not a smart thing to do. But honestly, what kept
• 41:14
  Speaker 2: me up all these years was having to concentrate on
• 41:18
  Speaker 2: the highway, you know, to evaluate all the threats constantly emerging,
• 41:23
  Speaker 2: you know, past, present and future threats. And now like
• 41:28
  Speaker 2: especially on the highway, it drives better than me. There's
• 41:31
  Speaker 2: no question. Doesn't have quirks. Yeah, but I got quirks too. Yeah.
• 41:34
  Speaker 2: I was gonna say, does it get drunk? No, No,
• 41:38
  Speaker 2: it doesn't get tired. It's fatigued. It is. And that
• 41:43
  Speaker 2: to me says everything.
• 41:44
  Speaker 3: Because you think about this, think of Elon musk Ever
• 41:47
  Speaker 3: went into the auto insurance business. He has automatic data
• 41:53
  Speaker 3: on every driver that drives a Tesla. He can price
• 41:56
  Speaker 3: the insurance to the risk of the driver if the
• 41:58
  Speaker 3: regulators will let him.
• 41:59
  Speaker 2: He's he's in it. He's got it. And I think
• 42:02
  Speaker 2: twelve or thirteen states. He just that is. Yeah. Well,
• 42:07
  Speaker 2: they asked Warren Buffett about it, and he said, yeah,
• 42:12
  Speaker 2: you know, the car insurance the insurance business sounds real
• 42:15
  Speaker 2: great is people send you money and you send them
• 42:18
  Speaker 2: pieces of paper. But it's a little more difficult. But
• 42:21
  Speaker 2: he'd never had real time data on millions of vehicles.
• 42:27
  Speaker 2: And you know, according to Musk and I don't know
• 42:30
  Speaker 2: if it's true. Like I said, it's one of those
• 42:33
  Speaker 2: AI things that I want to see the numbers on.
• 42:36
  Speaker 2: It's three to four times safer already than human driver.
• 42:41
  Speaker 2: But you know, La, when it comes to parking in
• 42:43
  Speaker 2: the parking lot, it's not so good. I don't trust
• 42:46
  Speaker 2: it right where there's all sorts of stuff going. But
• 42:51
  Speaker 2: but it's just a.
• 42:53
  Speaker 3: But you know, Carrie, that isn't where the risk of
• 42:55
  Speaker 3: auto insurance. In auto insurance is a federal Yes, yes
• 43:00
  Speaker 3: they have a claim, but that's nothing like a million
• 43:03
  Speaker 3: dollars in my ability for hitting somebody.
• 43:05
  Speaker 2: Yeah, or you know, or you know on the highway
• 43:08
  Speaker 2: that's well, highways are actually safer. It's actually the local
• 43:12
  Speaker 2: streets for the worst accidents take place. Counterintuitive, but yeah, well, Rick,
• 43:17
  Speaker 2: I always appreciate you coming on the show. One of
• 43:21
  Speaker 2: the great things about you global thinker. You don't think
• 43:24
  Speaker 2: in terms of data points. You think in terms of
• 43:27
  Speaker 2: systems and in terms of patterns. Pattern recognition and pattern recognition.
• 43:35
  Speaker 2: That's something that AI really excels at. But it's something
• 43:39
  Speaker 2: that they don't teach consciously in our schools, our universities.
• 43:45
  Speaker 2: There's no course in pattern recognition. Course in logic, yes, history, whatever,
• 43:51
  Speaker 2: but there's nothing in pattern recognition. You were going to
• 43:53
  Speaker 2: teach a pattern recognition course, how would you teach it?
• 43:57
  Speaker 3: Interesting question. I haven't thought about it. I guess in
• 44:02
  Speaker 3: order to make people assimilated, I would have to show
• 44:10
  Speaker 3: synchronous and asynchronous patterns on some subject that I could
• 44:16
  Speaker 3: make autobiographical because people relate to people.
• 44:18
  Speaker 2: Sure, yeah, yeahs.
• 44:20
  Speaker 3: It so, I guess I could do it. In the
• 44:24
  Speaker 3: context of the oil market and the oil stock market
• 44:27
  Speaker 3: going back forty five years, the thesis would be, in
• 44:30
  Speaker 3: terms of pattern recognition, the cure for high prices is
• 44:33
  Speaker 3: high prices, the cure for low prices is low prices,
• 44:36
  Speaker 3: and the variable is taxation interest rates. I could probably
• 44:40
  Speaker 3: do that, now that you mentioned it, I hadn't thought
• 44:42
  Speaker 3: of that. Question until you asked me. But I think
• 44:46
  Speaker 3: the easiest way for me to teach the course would
• 44:49
  Speaker 3: be to take the oil industry from nineteen sixty five
• 44:53
  Speaker 3: to twenty twenty six and teach cyclicality and variability. There
• 45:00
  Speaker 3: have to be three variability scales. One would it be technology,
• 45:04
  Speaker 3: the second would be theft aka taxation at rightltion right,
• 45:11
  Speaker 3: and the third would have to be real inflation adjusted
• 45:14
  Speaker 3: interest rates. And I think you could teach a pretty
• 45:18
  Speaker 3: good pattern recognition course doing that.
• 45:23
  Speaker 2: Yeah, because that's what AI is really all about. In
• 45:26
  Speaker 2: the end, pattern recognition, and how you refine that pattern
• 45:31
  Speaker 2: is how useful it becomes. And you know it's something
• 45:35
  Speaker 2: you've been doing unconsciously your whole life. While you can
• 45:37
  Speaker 2: look at a stock market chart and predict with reasonable
• 45:42
  Speaker 2: degree of certainty where it's heading next, or where the
• 45:45
  Speaker 2: trend is, or where you want to be in three years,
• 45:50
  Speaker 2: but the market's not there yet, and I think there's
• 45:53
  Speaker 2: some value to it, and.
• 45:56
  Speaker 3: AI probably maybe you know the answer to this. I
• 45:59
  Speaker 3: suspect AI probably would be able to looking at a
• 46:05
  Speaker 3: fifty or sixty year chart like that, point out what
• 46:09
  Speaker 3: the most relevant variables were. In other words, use we'll
• 46:12
  Speaker 3: probably be able to figure out taxation, technology and real
• 46:16
  Speaker 3: interest rates without being prompted.
• 46:18
  Speaker 2: Yeah, oh for sure, for sure, because you know that's
• 46:21
  Speaker 2: where the mastery and crunching all those numberes decades of
• 46:26
  Speaker 2: numbers that you know humans can't even do it. You know,
• 46:29
  Speaker 2: that's why we use charts, because we can't comprehend the numbers. Yeah. Well,
• 46:35
  Speaker 2: just something to think about in any event, appreciate you
• 46:37
  Speaker 2: coming on. Hey Rural Classroom, how do you sign up
• 46:41
  Speaker 2: for the Rick Rural Classroom.
• 46:43
  Speaker 3: Three things I want to tell your listeners about if
• 46:45
  Speaker 3: you'll permit me. The first is given that I spend
• 46:48
  Speaker 3: three hundred and fifty thousand dollars a year maintaining a
• 46:51
  Speaker 3: public company database and natural resources. I'll give you that
• 46:54
  Speaker 3: database for free. Send me your natural resource stocks. List
• 46:59
  Speaker 3: your natural resource at Rule Investmentmedia dot com, and for
• 47:02
  Speaker 3: free I'll rank them one to ten, one being best,
• 47:04
  Speaker 3: ten being worst. I'll comment on individual issues if I
• 47:07
  Speaker 3: think my comments have value. Please no crypto, no tex stoks,
• 47:12
  Speaker 3: no pot sucks. Yeah, no clip though I don't do those.
• 47:16
  Speaker 2: Okay.
• 47:17
  Speaker 3: That other thing is at the real classroom. We now
• 47:21
  Speaker 3: have seventeen thousand students who are for free accessing well
• 47:26
  Speaker 3: over three hundred hours of instructional material at the real
• 47:30
  Speaker 3: classroom five and a half hours on introduction to natural
• 47:33
  Speaker 3: resource investing. There's also the Rick Rule channel and the
• 47:39
  Speaker 3: Rule Investment Media Channel on YouTube. But we also have
• 47:45
  Speaker 3: one other event coming up, the thirtieth Rule Nature Resources
• 47:49
  Speaker 3: Investment Symposium in Boca Raton, Florida, July six through ten,
• 47:55
  Speaker 3: the finest natural resource conference I think on the planet.
• 48:00
  Speaker 3: We will sell out of the live conferences here. We'll
• 48:03
  Speaker 3: sell it out within thirty days. For the first time
• 48:05
  Speaker 3: in twenty years, we have pardon me unlimited access online.
• 48:11
  Speaker 3: So Rule Investment Symposium July six through ten, Booker Raton, Florida.
• 48:17
  Speaker 3: If you think, for any reason you didn't get your
• 48:19
  Speaker 3: money's worth, We'll give you your money back.
• 48:22
  Speaker 2: I'll give you your money back because let me tell you,
• 48:24
  Speaker 2: I've been to I don't even know how many of them,
• 48:27
  Speaker 2: Rick back in Vancouver, and you know, obviously I'm not
• 48:31
  Speaker 2: looking for but everything I learned there, I monetized it.
• 48:37
  Speaker 2: Everything and the people you meet, you know. The other
• 48:41
  Speaker 2: thing is why I love resource business better than any
• 48:44
  Speaker 2: other industry. Everyone's a character. Number one. I You're not
• 48:49
  Speaker 2: going to see straight lace to ivy league like lawyer types,
• 48:54
  Speaker 2: white shoe firm types, forget that. But they're all smart
• 48:58
  Speaker 2: and they're all problems. And when you get that many
• 49:02
  Speaker 2: problem solvers under one roof, something magical happens. You know,
• 49:08
  Speaker 2: the impossible becomes possible and the it rubs off on you.
• 49:14
  Speaker 2: I don't think I'm that bright, believe me, I don't.
• 49:16
  Speaker 2: But when I'm around smarter people, it makes me smarter.
• 49:21
  Speaker 2: So fine.
• 49:21
  Speaker 3: They're pretty nice. Yeah, you know, we've got we've got
• 49:24
  Speaker 3: a couple speakers. Nomi Prince comes to mind. Oh yeah,
• 49:29
  Speaker 3: very very, very famous person. She comes to the conference,
• 49:33
  Speaker 3: She hangs out at the coffee pot, she hangs out
• 49:36
  Speaker 3: the r she goes on the boat preuse, you know,
• 49:39
  Speaker 3: eminently approachable.
• 49:41
  Speaker 2: Yeah yeah, and you're eminently approachable. I mean I started
• 49:44
  Speaker 2: this fifteen years ago, Rick, and you like you're the
• 49:48
  Speaker 2: most generous going on people's shows of anybody out there.
• 49:52
  Speaker 2: But yeah, good people, problem solvers. They're actually trying to
• 49:58
  Speaker 2: make a difference, you know, like, Okay, we're all driven
• 50:01
  Speaker 2: by the profit motive, but these people are special. And
• 50:04
  Speaker 2: it's really you know, because hey, to it survived in
• 50:09
  Speaker 2: the resource sector this long. You got to have something extra.
• 50:13
  Speaker 2: You can't just be a you know, a schlepper or
• 50:20
  Speaker 2: a I'm trying to remember what somebody once told a slacker.
• 50:24
  Speaker 2: Somebody once told me I was in San Diego and
• 50:27
  Speaker 2: he said, yeah, it's a great place, but it's the
• 50:29
  Speaker 2: land of the slackers, which why New Yorkers can do
• 50:32
  Speaker 2: so well. So you can't be a slacker and make
• 50:35
  Speaker 2: it to the Rick Rule Investment Conference. You just can't.
• 50:40
  Speaker 3: Well, we look forward to your non slacker audience visiting us.
• 50:45
  Speaker 3: By the way, if you come either live or live stream,
• 50:49
  Speaker 3: you'll have access to the recordings of the conference for
• 50:50
  Speaker 3: a year, and you'll need them. We're going to give
• 50:52
  Speaker 3: you more information over four days and forty six hours
• 50:56
  Speaker 3: then you can absorb. So when I tell you it's
• 50:59
  Speaker 3: going to be four days for everybody to get their moneys,
• 51:02
  Speaker 3: who can be eight days attending the conference and then
• 51:05
  Speaker 3: playing back the recordings.
• 51:08
  Speaker 2: And great people. It's so worth it, and really appreciate
• 51:12
  Speaker 2: you coming on. Rick. I'll have a link to Rick's
• 51:16
  Speaker 2: various enterprises in the show notes. Highly recommend the classroom.
• 51:21
  Speaker 2: I'm signing up for it, like right away, I noone
• 51:23
  Speaker 2: realized you were doing it and Hey, look forward to
• 51:27
  Speaker 2: seeing and Boca in the summer and you'd be well.
• 51:31
  Speaker 3: Thank you and you as well. Thank you for the
• 51:34
  Speaker 3: opportunity to have this discussion.
• 51:35
  Speaker 1: Thanks for listening to carry Letz's Financial Survival Network, your
• 51:39
  Speaker 1: solution to today's trying times. For the latest, go to
• 51:43
  Speaker 1: Financial Survivalnetwork dot com. Financial Survival Network now more than ever,