EB Tucker: Gold vs. Silver — Which Will Lead in 2021?

TL;DR

EB Tucker believes silver will lead gold in 2021 because its limited supply cannot be expanded quickly. Tucker still views gold at about $1,850 as a bargain after it reached $2,080, and favors royalty companies for investment exposure to future production while treating physical gold as money or “fire insurance.” Read on for Tucker’s reasoning about supply, market control, debt, and dollar-priced metals.

Transcript

i'm charlotte macleod with the investing news network and here today with me is evie tucker director at metallo royalty and streaming and nova royalty and author of the book why gold why now thank you so much for being here online with me today thanks for having me charlotte of course and we're here to wrap up the year with you i think the last tim... Read More

Key Insights

• 🥺 The gold market experienced a loss of control during the pandemic, leading to a significant increase in prices.
• 💚 Copper and nickel have great potential in the green energy industry due to the increasing demand for electric vehicles and renewable energy sources.
• 🍉 Investors should consider buying royalty stocks that have exposure to future gold production and focus on long-term trends rather than short-term market fluctuations.
• 🤪 The future is not going to be like the past, and investors need to adjust their investment strategies accordingly.
• 💚 Tucker suggests that investors should consider the long-term potential of copper and nickel, rather than trading smaller stocks, to ride the trend in the green energy industry.
• 🧑‍🏭 Inflation could be a potential risk factor for the market, and investors should be aware of its impact on their investments.
• 💚 Tucker believes that the transition to green energy is unstoppable and presents a significant opportunity for investment in metals like copper and nickel.

Questions & Answers

Q: Will gold or silver lead in 2021, according to EB Tucker?

Tucker believes silver will outperform gold in 2021. The reason given is that silver has limited supply and additional supply cannot be brought online quickly.

Q: Why did gold prices rise during the pandemic?

Tucker says people began running out of physical gold while the gap between financial-market and physical prices widened. Dealers struggled to obtain gold, bullion banks may have suffered large futures-market losses, and gold subsequently moved up substantially in mid-summer.

Q: Does Tucker think the gold market is manipulated?

Tucker stops short of calling it outright manipulation, instead saying powerful interests have some degree of control over the market. The overnight price drops and recoveries can push speculative traders out when their protective stop orders are triggered.

Q: What gold prices does Tucker discuss?

Tucker says gold ran to $2,080 before settling near $1,850. A previous forecast of $2,500 gold by year-end was pushed into 2021, while Tucker describes the roughly $1,850 level as a bargain.

Q: How does Tucker suggest investors respond to an undervalued gold price?

Tucker suggests buying gold rather than becoming preoccupied with claims of manipulation. For investment exposure, Tucker also favors royalty companies that capture the value of future production for decades.

Q: How does Tucker distinguish physical gold from gold royalty companies?

Tucker describes physical gold as money, a safety play, and something like fire insurance rather than an investment intended to produce a large trading profit. By contrast, a gold royalty company is presented as an investment tied to future production.

Q: What happened to physical gold supply in March and April?

Tucker says people took physical gold during March and April and there was not enough available. The resulting scarcity was accompanied by a higher price.

Q: Why does Tucker see opportunities in gold, copper, and nickel?

Tucker expects a weak-dollar trend and says assets priced in dollars, including gold, copper, and nickel, should benefit. The existing summary also highlights rising copper and nickel demand from electric vehicles, renewable energy, and the transition to green energy.

Summary & Key Takeaways

• Evie Tucker believes the gold market experienced a loss of control due to the pandemic, resulting in a significant increase in prices, and believes it will continue to be an attractive investment.

• She suggests that instead of focusing on market manipulation, investors should consider buying royalty stocks that have exposure to future gold production.

• Tucker emphasizes the potential of copper and nickel in the green energy industry, as the demand for these metals is expected to increase due to the transition to electric vehicles and renewable energy sources.