Rick Rule via Gold-Prices.biz

Rick Rule via Gold-Prices.biz

Of the talking heads in the gold business, Sprott USA Chairman Rick Rule is perhaps the most direct when it comes to discussing wealth creation, and for that, we at CEO.ca love him.

Over the weekend, American investing site, Future Money Trends, published a video of Rule at a secret dinner party introducing Uranium Energy Corp. CEO Amir Adnani, who is one of the more eloquent mining executives out there.

Rule captured the value of stock promotion in his Adnani intro:

"Promotion is a cost of capital. That's what it is about. You don't want to be promoted, individually. But after you're long, you want the promoter to go into hyperdrive. Hyperdrive. Now that's in conflict. You don't want to be promoted, but you want every other son of a bitch on the planet to be promoted. So how do you do this? … You buy in a bear market, that's how you do it. A promoter can do all the hyperdrive he wants to, and he or she still can't nail you in a bear market, but when the market turns, and there's a market for the message, then a promoter lowers your cost of capital, sometimes to simply preposterous standards, and that's what you want."

The full video is available here.

Rule also spent some time with Mineweb's mineral exploration man Kip Keen at the New Orleans Investment Conference late last week, and Keen has already published two stories about that conversation.

Read: Where Rick Rule wants to invest - Part I, and What Rick Rule got wrong about this cycle - Part II