words of wisdom

Last month, our in-house metals-and-commodities expert Peter Krauth hosted one of his regular conference calls for his Real Asset Returns advisory service subscribers.

Peter's guest was Rick Rule, founder of Sprott Asset Management's Global Companies unit - a real heavy-hitter and one of the sharpest resource investors you'll find.

Rick is always engaging and provocative, and his presentation to Real Asset subscribers was no exception.

He capped off predictions for gold, energy and other commodities with four rules successful resource investors must follow.

And they're so good I had to share them with you.

Rule No. 1: Use Common Sense: "If it something sounds too good to be true, it is too good to be true," Rick told the conference call audience.

The Takeaway: Like all of Rick Rule's Rules, this one applies to all investments, not just commodities. For maximum gains and minimum heartache, be realistic about your expectations, thoroughly understand what you're getting into, manage your risk and don't succumb to hype.