EB Tucker correctly called gold’s rise to US$1,500 per ounce last year, and this week his updated prediction for the yellow metal came true.
Tucker, who is the author of the book “Why Gold? Why Now?” and a director at Metalla Royalty & Streaming (TSXV:MTA,NYSEAMERICAN:MTA), has been forecasting that gold will take out its previous all-time high of around US$1,920 this year, and on Sunday (July 26) it did just that.
“US$1,500 kind of became this base to go from, and then US$1,900 is now an area where as professionals we let it run. I mean, this thing is going to run,” Tucker told the Investing News Network.
Despite his optimism, Tucker acknowledged that some longtime gold market participants are worried about getting burned and are thinking about exiting their positions. For those people, he had the following advice: “Try to have a fresh set of eyes.”
“If you opened up the gold world for the first time today, your conclusion would be that this thing is going a lot higher. You wouldn’t worry about, ‘Oh, well I paid this much in 2011 and I sure am glad to get out with my cost back,'” he explained.
“That’s totally static. You’re looking at a situation based on your personal experience — any time in the markets you’re going to get in a lot of trouble if you’re looking at your personal experience.”
When asked whether he has a new price prediction for gold, Tucker said that for now he’ll be watching what happens next. “We think that it can run into the US$2,000s, and we’ll wait to see when it runs into trouble. We’re long and we’re watching,” he said.
Tucker also spent some time discussing silver, again emphasizing that it’s important to look at what’s happening with the white metal now versus being afraid of the volatile price action it’s seen in the past.
“I think it’s fair to think that silver is not to be trusted. But we don’t care about what happened 40 years ago, we care about now,” he said. “(If) you combine bad reputation, (a) bad seven or eight years of straight down … no company can mine it — this is all stuff that you look for when you’re about to see a rocket ship take off. Because this is a washout — everybody’s quit on it that can quit on it.”
Watch the interview above for more from Tucker on gold, silver and how to play the markets right now.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: 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.
