Rick Rule: The Dollar Will Lose 75% Of Its Purchasing Power Over The Next 10 Years

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**Rick Rule** (1:00)
My own belief is that in the next 10 years, the purchasing power of the US dollar will again decline by 75%.

**Adam Taggart** (1:10)
Sorry, in the next 10 years, you said?

**Rick Rule** (1:12)
In the next 10 years. And my operating assumption is that gold will keep pace with the deterioration of the purchasing power of the US dollar. That would be a fourfold increase over 10 years.

**Adam Taggart** (1:34)
Welcome to Thoughtful Money. I'm its founder and your host, Adam Taggart. The world economy has become a lot more uncertain in 2025 The shift away from decades of globalization towards nationalism and regional trading blocks has accelerated with the protectionist policies the new Trump administration is now pursuing. Gold has reacted to this uncertainty by soaring to new highs, and demand for other commodities is also in high flux right now. So, where is all this headed? And other opportunities the discerning investor can take advantage of amidst all this change? For answers, we're fortunate to be joined by Rick Rule, one of the world's greatest living natural resources investors and a heck of a gentleman to boot. Rick, thanks so much for joining us today.

**Rick Rule** (2:20)
Pleasure to be with you, Adam. After that sort of depressing introduction, it'll be an interesting discussion. Sadly, I think most of what you say is true. So, let's get on with it and deal with it.

**Adam Taggart** (2:30)
All right. Well, look, let's do that. Real quick, at the start here, let me just note for your audience here, our audience here, that you and your organization are doing one of your boot camps this coming weekend. And it's a gold boot camp, which is why I want to put on folks' radar here in case they're not able to make it through the entire interview. So, first of all, folks, if you want to learn more about that, sign up for it. Just go to thoughtfulmoney.com/rulebootcamp.
But Rick, this is a part two. So, what did you guys discuss in part one, and what are you going to dive into here in part two of the bootcamp?

**Rick Rule** (3:07)
Part one was first of all about the reasons why one owns gold. What part it plays in the portfolio, who should own gold and why. And then part one dealt with buying physical gold and physical gold surrogates. Things like gold-denominated ETFs, Perth Mint Certificates, the Exchange Traded Sprott Physical Gold Trusts. How to own and store physical gold.
In my experience, Adam, precious metals bull markets follow a predictable path. The front end of a gold bull market happens around the physical. When the price momentum in the physical establishes the narrative in people's minds, they move to the equities. They don't abandon gold, but they allocate more capital to the equities. But they start with the biggest and the best equities first. And finally, they move to the smaller equities. So part two is about gold equity investments around the biggest and the best gold companies in the world. The big royalty companies, you know, the Franco-Nevadas, the Wheaton Precious, the big producers, the ultra high quality smaller producers that will likely be consolidated by the big guys. This is about investment in gold equities. Part three will be speculation in gold equities. The gold juniors, for the people who are willing to tolerate volatility, willing to tolerate risk, willing to do real work and try to generate alpha.
This part will be around the beta in gold equities. And this is a very worthwhile topic. If one looks at a chart of the gold equities, represented as an example by the XAU, what one sees is that in gold bull markets, median returns on equity exceed 250 or 300 percent. And the idea that over four or five years, you can enjoy 200, 300 percent, particularly in equity markets where turmoil is reducing your returns in other parts of your portfolio. This is a wonderful alternative if you learn how, and if you know enough about the underlying premise that you have the courage and the patience to stay the trade, given all the volatility that we're likely to experience in the next four or five years. So that's what this is about.