“Gold, royalty companies, maybe some of the big miners. This is the trade,” said EB Tucker. He also spoke about silver, copper and nickel.
The gold price has been on a downtrend so far this year, but its fundamentals remain strong.
“This is the time when all the fundamentals for gold are great, and people are scratching their head as to what’s going on,” said EB Tucker, who is a director at both Metalla Royalty & Streaming (TSXV:MTA,NYSEAMERICAN,MTA) and Nova Royalty (TSXV:NOVR,OTC Pink:NVARF).
“Gold, royalty companies, maybe some of the big miners. This is the trade.”
Tucker expects to see gold at US$2,500 per ounce in 2021 and silver at US$50 per ounce, but he emphasized that investors should focus on building wealth, not on trying to guess where prices may go.
“This is a huge, once-in-a-generation bull market — huge. This is a huge, huge commodities cycle bull market, and you’re hung up on guessing the price of an ounce of gold?” he said.
In terms of copper, he said demand for the red metal is increasing while end users are becoming pickier about supply. What’s more, copper deposits simply aren’t that easy to bring into production.
“It’s not like gold — gold you can find 2, 3 million ounce deposits, they’re all over the place. You can put them into production fairly quickly, you can do this. With copper these are gigantic, multibillion dollar, 20, 30, 40 year mine life projects. These are huge undertakings,” he said.
Looking at nickel, Tucker is optimistic about future battery demand, and said he believes the metal is still in the early stages of its run. “As an investor what you want to do is play (cycles). If there’s a new technology that’s super early, you can start looking at it, but nickel is just in first gear — so what you want to do is ride that trend,” he explained.
Watch the video above for more from Tucker on gold, silver, copper and nickel.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Nova Royalty is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.