Down markets are notoriously rife with good deals, and nowhere is this truer than down under in Australia. In this interview, Rick Rule explains how he takes advantage of Australia's small, volatile market and investors' ethnocentrism to find high-quality companies.
While markets do not always reward every deserving company, quality deposits carry an intrinsic value. That's why the managing editor of The Emerging Trends Report advises investors to "buy the resource" over the stock.
Spot gold dealings opened with a $3.50 per ounce gain in New York and the yellow metal was quoted at the $1,505.10 level on the bid-side. Overnight highs near $1,510.00 were recorded amid dollar-oriented selling overseas.
The Australian government has recently compiled a database of Australian resource sector projects in Africa and the companies involved. There are over 220 Australian companies with nearly 600 projects in Africa spread across 42 countries.
Thursday's massive meltdown amounting to nearly 4% dragged gold to below $1,200 an ounce for a brief period. It was the worst decline the yellow metal experienced since early February and it ushered in a major technical breakdown on the charts.