“We’re not talking about years, we’re talking about weeks or months — it’s not that long of a time,” said Tucker.
Gold’s rise to US$1,500 per ounce last year was unexpected for some market participants, but for EB Tucker, the yellow metal’s price increase came as no surprise.
Since then, the case for gold has only grown stronger — in a year where many asset classes have faced coronavirus-related headwinds, the metal has been a bright spot for those who have it in their portfolios.
“Not only do we think (gold will pass its all-time high this year), we’ve gotten some clarity on how that might happen,” Tucker told the Investing News Network.
“We think it will happen in a very short period of time — for instance … we think that we’re going to see a big move up, and then another big move up and then a crest of the old high. (It will happen) so quickly in a several-day period that mainstream media is caught flatfooted.”
For investors, that means the time to enter the market is now, not later.
“This is kind of a single-use canister,” Tucker explained. “This move is something that you want to be positioned for before it happens.”
While he was quick to note that it’s impossible to pinpoint exactly when gold’s rapid price jump will occur, Tucker emphasized that there will be a cost for those who wait to get in. “We’re not talking about years, we’re talking about weeks or months — it’s not that long of a time,” he said.
Tucker also shared some insight on where he sees gold going in the longer term, noting that the events of the last two months or so have changed his perception of the metal’s price potential.
“I used to think that gold goes to US$2,500, and then we start kind of selling Metalla and we sell the royalty company — we get out of dodge, it’s getting too hot,” he said.
“I’ve completely changed my mind,” Tucker continued. “The governments of the world stimulated to the tune of US$12 trillion in a month, and I just sat there watching this thinking, ‘You’ve got to be kidding me, there’s only US$10 trillion worth of gold on the whole planet, and then there’s only about US$1.6 trillion of that gold that you can even invest in.'”
In his opinion, that means the upper limits of gold’s price potential need to be expanded.
“We don’t have a specific target, but we now think that when you get into the US$2,500, US$2,400 range, all you’re doing is waking up more people to watch in the mainstream. Now you’re so early to the party that you’ve got to turn the lights on when you get there.”
Watch the interview above for more from Tucker on where gold is and where it’s headed. And stay tuned for part two of the interview, which covers Metalla and how royalty and streaming companies in general are handling COVID-19.
Don’t forget to follow us @INN_Resource for real-time updates!
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.