"Gold is where your wealth is, but silver is where your excitement is," said "Why Gold? Why Now?" author EB Tucker.
EB Tucker: Don't Get Fleeced — Know What You Want to Own, Preserve Your Wealth youtu.be
Expectations were running high for gold and silver at the beginning of 2021, but with only one month left in the year, both precious metals look set to finish close to where they started.
Speaking to the Investing News Network, EB Tucker, author of "Why Gold? Why Now?," shared his thoughts on what happened and whether the situation is likely to change in the new year.
In his opinion, part of the problem is that the market has been distorted by minute-to-minute trends — people want to make money as quickly as possible and are less interested in long-term strategies.
Tucker believes that's a mistake, and reminded investors that it's important to keep the future in mind.
"Zoom back and say, 'Well, what do I want to own? If the music stopped right now, if the market shut down for a week, what would I be comfortable owning?' Forget about the day-to-day movements," he said.
December is a good time of year to think about that question, since many advisors recommend tax-loss selling.
"It's usually bad advice, because you're selling with lots of other people who are selling for no good reason. If you pay attention to this in a stock that you know well, it's an opportunity to get involved," he said.
"You can usually, when that selling is done — which I find is before Christmas, because no one wants to work from Christmas to the new year — you see that come up like a beach ball out of the water."
Tucker also touched on inflation, pointing out that while it's being discussed constantly, few are taking action.
"You have a window now to get positioned, to stop worrying about getting a tweet about the stock of the day, and to start thinking about, 'What am I going to do with my money?'" he said.
For him, getting positioned means being involved in royalty companies like Metalla Royalty and Streaming (TSXV:MTA,NYSEAMERICAN,MTA) and Nova Royalty (TSXV:NOVR,OTCQB:NOVRF). It also means having exposure to gold and silver. While he didn't make a specific price prediction, he does believe both metals have a bright future.
"Gold is where your wealth is, but silver is where your excitement is — silver's the wild animal that tends to cut loose," Tucker said. Watch the interview above for more of his thoughts on the market.
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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.