See my notes FWTW from Rick Rules interview on Kingworld News. He used to be his own shop (www.gril.net) but is not part of Sprott Asset Management.

Rick Rule 2/10/11 of Sprott Asset Management (Kingworld News Interview)

· Historical imbalance of supply and demand of silver makes him short term bullish

· One of the very large commercial banks in China has established gold and silver for its retail customers which will be a push for continued strength in these markets

· Move beyond $30 has really been supported by supply/demand fundamentals

· He is a gold bug who is still somewhat underweight gold so he is hoping that it doesn’t keep going up so fast (but fears he will be wrong in this hope)

· There’s the probability of some “black swan event” which will cause gold to go up up up

· What appears to be happening is what happened in late ‘70s – fear buyers cause greed buyers to come in which then causes the fear buyers to step up again.

· Question asked about what he is doing with his personal investments. He has large amount of liquidity in bullion related investments. Thinks we will have lots of volatility in the market in the next 12 months like the shock we had in 07 & 08 and wants to have some dry powder. Increasing his weightings across the board in the energy sector as it will not be cheap for long. In the oil market about 30% of exported oil is in Venezuela, Mexico, Iran, etc. and these countries will cease to be exports in next 5 years as they have not invested in their infrastructure. This will exert tremendous upward influence on price. Also what is going on in the Middle East could cause surprise shocks in oil price. If for example, there was conflict that impacted the Straits where oil flows through price would spike significantly possibly up to $150. His personal investments in oil are increasing because it is inevitable that oil will go higher. Price of oil is relatively cheap here

Several other energy types could do well. Natural gas price will go up because it is so cheap that demand for it will increase. Doesn’t see it going to its former highs of $15 but could go to $5 and if so, the impact on natural gas stocks will be great. He is nibbling here even though he is probably early in nat gas investments. He has made the most money when he has been early in a trade. Doesn’t see much downside here and could see 4-5 times upside over the next 2 years.

He is also Increasing the pace of his agriculture investments. There are pending food shortages around the world. Mentioned farm land and food companies. Food used to cost around 30% of one’s budget and it is now around 12%. Thinks we will have a major snap back in the % of one’s budget that food will play. Thinks we will have a spectacular bull market here.