Warren Buffett Doesn’t Need Gold, But You Do – Rick Rule


The world’s largest mining conference, PDAC, is kicking off in Toronto today. Rick Rule, CEO of Sprott U.S. Holdings comes out swinging in response to recent comments from Warren Buffett on gold. On gold, Rule explains,

“It protects you from your own worst instincts.”

And,

“It’s an enforced form of savings. And, it protects you, from the depredations of government.”

Rick Rule Explains Why Warren Buffett Doesn’t Need Gold

Rule goes on to explain that an investor the caliber of Warren Buffett most likely doesn’t need extra insurance on his portfolio. But, that doesn’t mean that it’s not good practice to own gold as a hedge, according to Rick Rule, CEO of Sprott U.S. Holdings.

According to Rule,

“The truth is that most investors don’t want education. They want affirmation.”

Rule went on to tell Kitco News on the sidelines of the PDAC 2019 that,

“Were I as smart as Warren Buffett, were I as disciplined as investor and as good an analyst, I probably wouldn’t need gold either. Part of what gold does is it protects us from our own worst instincts.”

Finally, Rule sounds off on the potential acquisition of Newmont by Barrick. The long time money manager believes merging two of the world’s largest gold producers will dramatically cut down on overhead costs and be a benefit to the industry.