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Analyst Who Called Gold $2,000 Is Now Predicting $2,500 By Year-End

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As gold prices breached $2,000 an ounce and continue to march higher, one analyst sees momentum continuing all the way to $2,500 by year end.

E.B. Tucker, director of Metalla Royalty and Streaming and author of “Why Gold, Why Now? The War Against Your Wealth and How to Win It” said that this current bull rally has not run out of control, and is in fact, still going to going to continue at a measured pace.

“Normally I would say [the bull run is overheated] but what I’m seeing in the daily action is that gold is rising in a very measured way and is not meeting much resistance, so when that’s happening you just step out of the way and let it go, that’s what you do,” Tucker said.

The U.S. dollar has been weakening, and this trend of devaluation is not new, he said.

“This is not new. Back to Nixon in 1971, there was a period when they tried to hide the devaluation of the dollar. It’s a measured devaluation, they don’t want this to be reckless, we have an adjustment periods. We’re in that right now. So right now, the dollar value is the big deal,” he said.

Tucker noted that deflation is a bigger risk right now than inflation.

“What’s really hard for people is…deflation is the real problem because what happens is we’re swimming in too much money, so you have so much money that’s been created, and all that money that’s created over the last 10 years goes looking for investments. When all that money goes chasing for investments, the return on investments goes down, down down,” he said.

The stock market, although appreciating in nominal terms, is not really appreciating in real terms, adjusted for inflation, he added.

Investors should not be trading gold in the short term on leverage, because a short-term correction may occur at some point before prices hit $2,500 an ounce, Tucker said.

“This is a secular bull market. This is a bull market in gold that you’re probably never going to see in the course of your life again,” he said.

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