(Miles Franklin Media) – Silver's sharp decline from roughly $120 an ounce to around $60 has raised questions across the precious metals market. Many investors expected strong industrial demand and persistent supply deficits to support higher prices, yet silver suffered a steep correction after hitting triple digits.

Legendary investor and speculator Rick Rule believes the explanation is much simpler than many assume.

Speaking with Michelle Makori, President and Editor-in-Chief of Miles Franklin Media, at the 2026 Rule Symposium in Boca Raton, Rule said the selloff was driven almost entirely by investor sentiment rather than weakening fundamentals. He argued that the silver supply deficit continues to grow, inflation remains a powerful long-term catalyst for precious metals, and the recent correction has created better opportunities for patient investors.

"We need to ask ourselves what has changed with regard to the fundamentals in silver," he said. "I would suggest to you nothing."

Rule believes investors simply became too optimistic after silver's rapid rise. "Markets, even secular bull markets, are cyclical, and they're volatile."

For him, silver's recent decline tells investors more about market psychology than about the metal itself. "I would suggest to you sentiment, solely sentiment. I would suggest to you that the silver deficit is getting worse, not better."

Rule also explained why he sold approximately 80% of his physical silver holdings after prices surged and why he has shifted capital into silver mining companies.

“I maintain liquidity in US dollars. I speculate in silver. I bought silver when people hated it. When it ceased to be hated and when I saw the hyperbolic up chart, I sold 80% of my silver,” Rule told Makori. “People say to me, ‘When will you buy your silver back?’ I won't buy physical silver again until it's hated, although I'm buying silver stocks as we speak.”

Why silver mining stocks offer better value

Rule stated he shifted capital into silver mining companies because he believes many producers remain undervalued relative to current metal prices.

He said numerous silver companies continue to trade as though silver were priced around $40 an ounce instead of approximately $60.

That disconnect created an opportunity. "If the silver price continued to go up, the silver equities could do well. If the silver price went sideways, I could still make money in the silver equities," he said. 

Among the companies he mentioned were Wheaton Precious Metals, Pan American Silver, Abra, and Vizsla Silver. Rule added that he intentionally withheld several additional names because he is still building positions.

Rule’s long-term outlook 

Rule also reaffirmed his long-term outlook for gold and silver, stating that he still believes gold could eventually reach $15,000 an ounce while silver has the potential to climb to $300.

He added that rising government debt leaves policymakers with few attractive options, making currency debasement a more likely outcome than outright default. "The only way out is to devalue the currency."

"If gold goes to $15,000, silver does better,” he said. 

For his reasoning and timeline, watch the video above.

Underinvestment makes oil one of Rule's strongest convictions

Beyond precious metals, Rule expressed growing confidence in the long-term outlook for energy.

He believes recent geopolitical tensions involving Iran temporarily focused attention on oil markets, but the more important issue is years of inadequate investment in global production.

"The next shortage that we have in oil won't be a consequence of war. It will be a consequence of structural under-investment,” he said. 

According to Rule, governments have redirected capital toward social spending while many publicly traded energy companies have emphasized dividends and share buybacks instead of expanding production.

That imbalance, he said, could eventually tighten supplies regardless of geopolitical developments.

Rule described oil as the foundation of a commodity portfolio and pointed to Exxon Mobil as one company that continues to invest responsibly for future production.

To find out what other companies are on Rule’s radar, watch the video above.