Gold Is On The Road To $1,900, While Silver Consolidates Gains

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	Silver Is Up Over 70% In A Year, Here's Why Experts Say It Could Have Further To Go
	Silver was trading around $27 an ounce on Wednesday, a 74% rise from a year ago. . . . Holly Ellyatt
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After breaking above the key $1,800 level on May 6th, Gold kept on moving higher last week. Increasing demand helped fuel Gold closing at $1,876 per ounce last Friday, up $38 for the week. Lower interest rates, a drop in the U.S. Dollar Index, and major bitcoin selling helped drive the price of Gold to reach a high of $1,890 last week.

The 10-Year Treasury interest rate has been trading at 1.60%, a lot lower than the March high of 1.74%. At the same time, the U.S. Dollar index has fallen under 90, compared to its March high of 93.30. Both of these facts have increased Gold demand in addition to the drop in Bitcoin from $57,000 at the beginning of May to the $35,000 level last Friday (a 38%) drop.

A number of my larger Gold buyers work for major financial firms on Wall Street and back in January some of them were selling Gold to fund their Bitcoin purchases. Since the beginning of May, they have been cashing out and increasing their Gold holdings. In discussions with a few of these professional financial analysts, they believe many of the world’s largest governments will be putting heavy regulations and reporting on Bitcoin usage.

Since Gold is definitely back on its bullish track to reach $2,000 per ounce by August, let’s recap what has happened this year. Gold started the year at $1,893 per ounce and quickly reached a high of $1,962 in early January. Then, we saw a gradual sell-off until reaching a 2021 low of $1,673 on March 8th, which I described as a final clean-out. Then Gold has moved up over $200 per ounce on strengthening fundamentals of trillions of Dollars, Euros, Yen and Yuan being pumped into the world’s leading economies.

Today: With the U.S. Dollar and interest rates staying low and pressure being put on Bitcoin, the Gold price is behaving well. Gold is building a nice base above the key $1,880 per ounce level as it prepares to make a move to the $1,900 level.

Last week, Silver traded between $27.29 and $28.90 per ounce, a $1.61 high/low price range. Silver closed Friday at $27.48 per ounce, up $0.12 for the week, and up $1.16 since the first of the year. The Silver price has performed better than Gold this year, which drove the Gold/Silver ratio from 74-to-1 down to 68-to-1. It is now showing a lot more volatility. As Gold approaches the $1,900 per ounce level, Silver could explode to the $29 and above level.

I’ve had clients ask why the premium on the 2021 Silver Eagles is so high. Let me explain.
The U.S. Mint produced an average mintage of over 4 million Silver eagles in the first three months of 2021, then in April they only minted 1 million and haven’t minted any in May and aren’t likely to mint any Silver eagles in June. Why? A combination of a lack of Silver and preparing for all the new issues, including the type 2 Silver Eagles and the 2021 Morgan and Peace Dollars.

Today: Silver is showing better price support than Gold this morning, building a firm base above the $27.50 level. Silver did reach a high today of $27.99 before seeing some short-term profit taking that caused it to drop $0.10 per ounce.