After Building A Base, Gold And Silver Are Ready To Move Higher

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	What Caused the New York vs. London Gold Price Spread and Why it Persists
	The spread between the New York futures and London spot gold price was initially caused by logistics. . . .Jan Nieuwenhuijs
	Gold Markets: Ready To Hit All-Time Highs?
	Gold prices continue to show incredibly impressive market trends, as the yellow metal has gained by more than 17%. . . . Richard Cox
	Venezuela Now Wants To Sell Its BOE-Stored Gold To The U.N. For Coronavirus Relief
	Unable to repatriate its gold back from the Bank of England (BOE), Venezuela now wants to. . . .Anna Golubova - Kitco News
	Can Gold Love A Coronavirus Crisis?
	Gold loves a crisis, the old adage goes. And with prices up. . . .Peter Hobson, Rajendra Jadhav, Saqib Iqbal Ahmed- Reuters
	Mexico Is The World's Largest Silver Extractor
	Mexico has remained "The King" of silver mining around the world. The country produced around 190.3 million ounces . . . . Neil P.

Gold has traded above and below the key $1,700 per ounce support/resistance level in the past week. Gold’s traditional role, as a hedge against economic uncertainty, is being fueled by increasing Central Bank stimulus. That, plus supply squeeze triggered by shuttered refineries and widening spread between London and New York, is driving the Gold price higher (see article above). But, worsening economic data and weakening Gold demand from Central Banks around the globe is pushing the price lower. Gold continued to build a firm base as it ended the week at $1,698 per ounce, down $37 for the week.

As the world’s economies react to the consequences resulting from the coronavirus infections, most financial markets (stocks, bonds, and commodities) are in disarray. The only market that has a clear direction is Gold, and that direction is higher. The trillions of Dollars, Euros, Yen, and Yuan that are being printed and spent to save their economies can only result in the devaluation of paper money. The largest central banks are providing trillions in liquidity for large corporations, banks, and financial institutions.

Gold is the only way investors can protect themselves from watching the buying power of their life savings being destroyed. The sharp increase in the value of Gold, that I believe will happen soon, is just a harbinger of a period of economic contraction followed by serious inflation. I recommend increasing your holding of Gold now. Then, as we start seeing the first signs of inflation, I’ll be recommending to roll a portion of your Gold into Silver.

Today: Gold is up $7 this morning on fresh buying caused by the economic uncertainty stemming from rising tensions between the U.S. and China over who is to blame for the worsening global coronavirus pandemic.

Last week, Silver traded in a dollar high/low range, between $14.77 and $15.77 per ounce. Silver closed trading last Friday at $14.86 per ounce, down $0.40 per ounce. As I watched Silver trading last week, it was clear the price was taking direction from Gold. With Gold trading at about the important $1,700 level, I expect to see Silver stay above the $15.00 level.

The West Point Mint was temporarily closed due to coronavirus concerns. During the two weeks of closure, the Philadelphia Mint produced 240,000 1-oz Silver Eagles to help with the backlog. If the mintage doesn’t increase, the Philadelphia Mint Silver Eagles will probably have a much higher premium.

Today: As Gold moves higher, Silver is seeing heavy selling and shorting as it approached the key $15 per ounce level.

Stacks/Bowers and Heritage numismatic auction companies both held auctions in April; they were originally scheduled to be during rare coin conventions. The Stacks/Bowers was slated for Baltimore, while the Heritage auction was originally going to take place at CSNS show in the Chicago area. Because both conventions were cancelled, they moved the auction to their home locations in Newport Beach and Dallas. Both companies considered canceling the auction, but decided to accept phone and internet bidding and not have a live event.

The surprising thing about both rare coin auctions was the prices for most of the rarities sold for a higher price than originally estimated. Many of the Silver and Gold rarities with a value over $5,000 sold for 10-15% more than the estimated price. Why? When talking to representatives of the auction companies, these reasons were given:

• • Most serious rarity collectors are not concerned about unemployment and since they are at home, it gives them an opportunity to work on their collection.

• • Without being able to plan vacations, they have extra money to invest in their collections.

• • Seeing trillions of Dollars in stimulus being printed and given away, they believe that this will have a very positive affect on future prices of rarities.

The short and long-term outlook for rare coin prices is excellent, demand is strong, and we have inflation on the horizon. As the mints get back into full production and catch up with the black log, premiums on modern bullion issue Gold and Silver should decline. However, premiums on Pre-1933 U.S. and foreign Gold and popular Silver Dollars will probably increase.

This is my 60th year in the Rare Coin and Precious Metal Business. Yes, since 1960 I have been working with collectors and investors on buying and selling rare coins and precious metals. If you have coins you wish to sell, we will email you a UPS or FedEx shipping label and pay for the cost and insurance. Then we will wire the proceeds into your bank account or mail a check.

We are excited to mention that Stuppler & Company is now an authorized distributor for the Australian Perth Mint. They have the license to mint the new James Bond coin, which we will be offering shortly.