Gold will hit $2,500 an ounce by year-end, with silver outperforming to reach $40 by year-end, said E.B. Tucker, director of Metalla Royalty and author of “Why Gold? Why Now? The War Against Your Wealth and How to Win It.”
“Silver’s got some catching up to do. One of the things about silver that people need to understand is that the supply of silver is not elastic, and what that means is if the price goes higher, the mines can’t just turn it on. Only about a quarter of the supply comes from actual direct silver mining, the rest of it comes from by-products, and recycling,” Tucker said.
Historically, September to December is the period when gold has seen the bulk of the price action upwards, he said.
Tucker noted, however, that silver is unlikely to breach the all-time high level of $50 an ounce by year-end.
“Nobody’s in this market, so you have a long way to go because it’s like a party. There’s only a few people at the party. The cops don’t come until much later when the house is totally filled. We’re a long way from that. So this year, it’s $40, we’ll see where it goes from there,” he said.
Fundamentally, a lot of the problems with our economy are rooted in how the monetary system works, Tucker said.
“You’re taught that as a kid that it’s a capitalist system and it’s better than a system that has too much state control, but then if you turn on the media and really take an assessment of what’s happening…if you had gone to sleep 50 years ago and you woke up today, you would have thought, I must have landed in Moscow,” he said. “The state has so much control. And then you look at the companies. You have four companies in the S&P that, as of last week, that are bigger, in market cap, than 385 smallest companies in the S&P. You have distortions that people in generations past wouldn’t believe in.”
Author: David Lin
Source: Kitco: $40 silver price by year-end, E.B. Tucker forecasts