Gold Bull Reveals Another Two Plays

While he expects gold prices to rise in the long-term, Rick Rule of Sprott Asset Management said Monday that his top two precious metals were platinum and palladium.

"We call that 'The Other Bullion,'" he said. "What's particularly attractive about it is that the above-ground inventory is less than 12 months fabrication supply. There is no historical supply. All of the supply is new-mine supply."

Platinum traded up more than 2 percent at $1,498, while palladium ticked up 60 cents to $654.25. Gold gained $20 to trade at $1,413.60 an ounce.

On CNBC's "Fast Money," Rule noted that the mining industry for platinum and palladium doesn't earn its cost of production.

(Read More: 3 Gold Mining Stock Bargains)

"Either the price of platinum and palladium goes up, or the supplies will fall further and faster," he said. "That, in the face of increasing demand, as a consequence of better demand for air-quality standards on a global basis."

Rule, who has $1.4 billion in assets under management, also sounded bullish on gold, especially after its recent decline.

"Certainly, it's due for a technical recovery," he said. "Would you rather own gold, or would you rather own the U.S. 10-year Treasury, which Jim Grant famously decided was a return-free risk?"

(Watch Video: Very Bullish on Gold: James Grant)

While stocks had a place within investors' portfolios, Rule said that gold was also important.

"Within the general stock market, there's a place for that in every portfolio, but also I think an insurance trade, which gold generally has been, has a place in every portfolio, too."

Trader disclosure: On June 3, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Mike Murphy is long FB; Mike Murphy is long F; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long AAPL; Joe Terranova is long SPLK; Joe Terranova is long GLD; Joe Terranova is long TBT; Joe Terranova is long SWN; Joe Terranova is long GOOG JUNE 870 PUTS; Joe Terranova is long GS JUNE 165 PUTS; Joe Terranova is short MINI S&P FUTURES; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB ; Stephanie Link is long EBAY; Stephanie Link is long F.