(Ktico News) - The asteroid 16 Psyche that has made headlines is not going to make us all billionaires, contrary to what some reports have claimed, said Lobo Tiggre, principal analyst of the Independent Speculator.

Tiggre told Kitco News that much of the asteroid is composed of iron, and even if all the gold by-products can be mined and sent back to Earth, there would be so much oversupply of gold that the value of the yellow metal would be wiped out.

"From what we've been able to tell from a distance, the surface seems to be 90% iron from what I've read. I've never been there, nobody's been there," he said. Some reports indicate that the asteroid contains as much as $700 quintillion worth of metals, but that much of anything will just make it worthless, Tiggre said.

NASA has made plans to send a mission to probe the asteroid in 2022, called the Discovery Mission.

What About Silver?

On silver, the white metal is a bargain compared to gold, and things look bullish for both metals, Tiggre said.

"Where gold goes, silver follows, and the fact is it's still relatively cheap," he said. "I absolutely have silver plays at the very top of my research list." Tiggre's comments come as the gold-silver ratio hits historic highs of 92.6 but this metric is not a good indicator for price forecasts, he noted.

"Never mind the gold-silver ratio, we've talked about that before," he noted. "The really important important fact is that silver is still a bargain [compared to gold], and that matters."

Watch the full interview with Lobo Tiggre on Kitco News.

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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.