Gold Is Going To Hit $1,500 And Here's The Game Plan...
(Kitco News) - Gold will hit $1,500 an ounce in 2019, according to Metalla Royalty & Streaming director E.B. Tucker, who is not shying away from his bullish call this year.
“We made a big call for gold this year and a lot of people have asked me about that $1,500 call, but no one has asked me how we came up with it,” Tucker told Kitco News on the sidelines of the Vancouver Resource Investment Conference.
Right now, gold is at a bottom, which means that it is not about “if” it is going to go up, but “when” it is going up, Tucker explained.
“Gold is a commodity, so you see these cycles running that run in the commodity business. They go to highs, they go to lows. And everybody gets scared at the lows and get euphoric at the highs. And we are definitely at a low and that’s where we came up with that call. So far we are up $75-$80, we are right,” he said.
And this jump to $1,500 an ounce is only the beginning, Tucker added, pointing out three signs that make him pro-gold.
The first positive sign for gold prices is that many miners are producing at a loss, Tucker noted. The second, is that some of the recent mergers, including Newmont and Goldcorp, are mergers of necessity. And the third, is that mining companies are running out of reserves in the ground.
“We are close to a bottom. With gold, it is not if, but when … And we think that when is just around the corner and that’s why we made that call,” he said. “I bet you I can get twenty meetings in the New York City to talk about cryptos if I wanted to. I can’t get any to talk about gold. It is still an unheard of asset for hedge funds and traditional investors to buy into.”
When it comes to the best way to own gold, Tucker recommends royalties.
“We know ten years from now, gold will be higher. I love royalties because you lock in ten, twenty years of exposure to gold today,” he said. “Looking for gold in little exploration companies is not an investment, it is a gamble and I personally don’t like to gamble. I like to buy something that I can trust and the royalties to me are the best performing asset class in the gold market.”