Gold had a great start to the year. Meanwhile, however, there is not much left of that initial effort. Despite the fact that gold has not satisfied investors in 2015 to date, the precious metal is far from a disappointment according to Rick Rule from Sprott Asset Management.

There are many people with different expectations. Gold is not bad investment, however, he says. A room in motel 6 for 6 nights used to cost one ounce of gold. With that same ounce you can stay for 16 nights meanwhile, and that is exactly what gold should be doing.

Rule is also optimistic about the mining industry; there has never been a better time to actively invest in the gold mining industry. From the point of view of the professional investor or the professional speculative investor this is a great time. Rule added that in 2020 people will refer to today as the good old times when gold stocks were still cheap.

Safe Haven
Although gold mining companies have had it rough these last couple of years, Rick Rule believes that the bottom was reached around the end of 2013. The bottom has been tested once again in October of 2014, he said, but that is completely normal.

For 2015 he expects a gradual recovery in the form of higher lows and higher highs, in combination with a healthy portion of volatility.

Rule explained that he still considers the precious metal to be a safe haven, in contrast to other investors. Many look at gold as a speculative game versus a safe haven. He has been around long enough to know what gold actually is. If you can hold onto gold for a long time it will definitely not disappoint you. Rule’s ultimate goal is to maintain his buying power.