Editor’s note: What is the most hated commodity in the world?
Speaking at a recent S&A Conference event, billionaire resource investor Rick Rule told the audience that it was “a fairly target-rich environment.”
Rick listed a number of possible candidates – from water… to agricultural minerals… to coal.
But as he revealed, one commodity stands out head and shoulders above the rest as cheap and hated.
As Rick told conference host Porter Stansberry, “Truly, the price of [this commodity] goes up… or the lights go off.”
In today’s Weekend Edition we’re sharing the video recording of the full conversation Porter had with Rick at the S&A Conference Series event in Dallas, Texas.
Rick talks about why this hated commodity is such a great investment right now… why natural resource investors have to come to terms with volatility… and why you’re either a contrarian or a victim in the natural resource sector.
I hope you enjoy it.
P.S. The next S&A Conference Series event – in Nashville, Tennessee – is next month. It should be another great event. Rick will be speaking again… as will Bill… and S&A founder Porter Stansberry. Former congressman Ron Paul will be the keynote speaker. And Jim Rickards will be sharing his views about the coming collapse of the dollar.
The Most Hated Commodity in the World
And I’ve known Rick fairly well since about the 2001/2002 timeframe, but of course I knew him by reputation for many years before that.
Just a very brief Rick Rule story… Rick told me in 1998 that I should really put all my life savings in uranium. And he pointed to a handful of stocks that were trading at between 10 cents and 25 cents.
I thought he was either crazy or a crook, and I wasn’t sure which. And then for the next eight years, those things proceeded to go up five or six times each year. The same stocks in 2006, at the top, were trading at $30 to $50 each. And that’s when I started taking Rick a lot more seriously.
I [chuckle] challenged him for our conference to do something that he doesn’t normally do, which is, I said, “Rick, I don’t want just the general theory about how to be a good contrarian. I want you to give a talk about the world’s most hated asset.” And he promised to do so!
Rick Rule: Thank you, Porter, and thank you, ladies and gentlemen for coming here to hear me. You’ll see my cautionary statement there. Everybody have a look at it! On my honor, as a stockbroker, I will be making forward-looking statements.
[Chuckle] I’d like to begin by thanking Porter Stansberry and the Stansberry staff for putting this on. I used to do some conference promotion in my earlier years, and I can tell you it’s analogous to herding cats. It’s a hell of a job. So at the very beginning, I’d like you to join me in a round of applause for Porter and the Stansberry staff.