"This Is The Worst Gold Market I have Ever Seen" - Metalla Royalty
Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!
(Kitco News) - The gold mining space is facing one of the toughest times in history, but thatâs not stopping gold prices from seeing better days.
All the right conditions are in place for gold to continue climbing, and one analyst is doubling down on his $1,500 an ounce call by year end.
E.B. Tucker, director of Metalla Royalty and Streaming, said all the pieces are in place for a rally, which will come soon and fast.
âThe thing I want you to think about is what happens to the market and where is the opportunity when gold hits $1,500. Itâs going to hit it fast, I mean, itâs up $60, roughly, in the last three trading days, so this move is going to happen quickly, and itâs going to catch people off guard,â Tucker said.
On comparing gold to bitcoin, Tucker said that the yellow metal has been around for thousands of years and people should stop comparing it to bitcoin, which is not in the same asset class.
âItâ not even a question, itâs like walking versus air travel, itâs not even comparable,â Tucker told Kitco News on the sidelines of the 121 Mining Investment conference in New York.
Bitcoinâs finite limit is also not sufficient to classify the cryptocurrency as a safe haven asset and store of value, Tucker noted.
âWhat people donât realize is that thereâs only about, I think, $160, $150 billion worth of bitcoin available in total supply, and with gold thereâs $8 trillion. People say âwell, thereâs less bitcoin than gold, and thatâs better,â well not really, because you look around the world and you have asset managers, people have to move in and out of these assets, and [bitcoin] is not a functional place to store money,â he said.
In response to bitcoinâs rising functionality as a means of payment at retail stores, Tucker again said that the comparison cannot be drawn with gold.
âI donât need to do that with gold, because gold is a place to store wealth, so I donât need to take my wealth and buy sandwiches, I need to use my wealth to preserve myself as a man of substance through the down periods. Thatâs the purpose of gold: itâs real money you can trade it into something, into another type of money whenever you need to,â he said.