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RR: I think that it probably has in the near term. I think that
had the independent brokers served the investors really well, the
banks never would have been able to conquer them. The market
always works out to the benefit of the consumer, that is, the small
retail investor, over time. Whether the shareholder interest and
the issuer's interest are necessarily concurrent is a very separate
circumstance, but I do firmly believe that the independent bro-
kerage firms were responsible for their own demise. The banks
weren't. The banks simply had more capital and out-competed
them.
One needs to remember that individual mining companies and
individual juniors are responsible for their own financial success.
They need to reach through the brokerage industry informa-
tion stranglehold and communicate directly to investors through
mediums like your magazine, through conferences and social
media. The idea that you allow a gate keeper – a broker – to man-
age your relationship with your own cost of capital is either an
example of either stupidity or laziness – two bad alternatives.
RW: How much influence do American investors have on
Canadian mining stocks?
RR: American high net worth retail investors are the only
source of capital available to mining juniors in bad markets. The
reason that the Canadian junior market is so much more success-
ful than the AIM London market or the ASX in Australia is the
presence of the North American retail investor market that is both
the Canadian and US retail investor. The difference between the
two, of course, is that the Canadian investor market is over-served
by resource infrastructure while the US market is characterized
❝One needs to remember that individual mining companies and individual
juniors are responsible for their own financial success. They need to
reach through the brokerage industry information stranglehold and
communicate directly to investors through mediums like your magazine,
conferences and social media.❞
RICK RULE INTERVIEW
