Gold & Silver Breakout Resistance Level And Start Moving Higher

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	The US Dollar or Silver- Place Your Bet
	Over the last 50 years there have virtually been no significant Silver rallies during a period when. . . .Hubert Moolman
	Gold is Goldman Sachs' Favorite Commodity
	Goldman Sachs continued to reiterate its bullish outlook for gold with the firm ’s global head. . . .Neils Christensen - Kitco News
	Fed's Powell Warns Of Prolonged Economic Weakness, Calls For More Fiscal Support
	Federal Reserve Chair Jerome Powell, in a sober review of where the U.S. . . .Howard Schneider, Ann Saphir - Reuters
	Something Big Is Coming- Gold's Narrowing Range To Lead To A Major Price Move
	Gold futures are behaving like a restless person taking a nap – with the market not moving much in either direction . . . .Allen Sykora
	Get Ready For The Return Of Inflation
	The economists Milton Friedman and Anna Jacobson Schwartz demonstrated in “A Monetary History of the United States”. . . .Tim Congdon

May has been a great month for Gold investors, with a $62 (3.6%) increase in just eleven trading days. Gold closed at $1,753 per ounce last Friday, approaching an 8 year high of $1,780 per ounce. Last week's news from both the House of Representative and the Federal Reserve has given me more confidence that my Gold prediction of $2,000 per ounce by year-end is a real certainty.

The Federal Reserve Chairman Powell has recently indicated that he believes that the coronavirus will inflict lasting damage on the U.S. economy. He believes the unemployment rate could reach 20-25%. He is committed to more aggressive measures coming from the Fed to pull the economy out of its coronavirus driven nosedive. Right now, the Fed has been flooding the financial markets with liquidity to help support the markets. The Federal Reserve can only loan money, Congress has the ability to spend money.

On Friday, the House of Representatives passed legislation to spend $3 Trillion on a coronavirus stimulus package. That legislation is on the way to the Senate this week, but the passage will require serious compromise with Mitch McConnell and President Trump.

Also, on Friday, there was a worse than expected 16.4% drop in April U.S. Retail Sales. This, added to President Trump’s threatening to “cut off the whole relationship” between the U.S. and China, contributed to strong demand for Gold and Silver.

Because of the economic impact coronavirus has had, many nations have dramatically increased their deficit spending. That, combined with their huge debt load and weak fiscal policies, is a recipe for financial disaster. Many countries will default on their national debt this year. Argentina, Ecuador, and Lebanon have already defaulted and many more nations are at risk to default this year.

As this crisis continues to move forward, it’s becoming clearer and clearer why our clients need to increase their precious metal ownership to protect their life’s savings. Cash continues to be a depreciating asset. Federal, state, and corporate debt will drive our Federal Reserve to do one bailout after another, as we completely depreciate the value of currency. To quote one of my clients, who works for a large financial institution in New York, “within a few years toilet paper should be worth more than paper dollars.”

Economists around the world have been thinking about what the result of the printing of the trillions of Dollars, Euros, Yen, Yuan, and other currencies will ultimately have on the world economy. Professor Tim Congdon, Chairman of the Institute of International Monetary Research at the University of Buckingham, England has written an article printed in the April 23rd Wall Street Journal entitled “Get Ready For The Return Of Inflation”.

Today: Gold hit a high in early Asian/European trading of $1,762 per ounce, before seeing profit-taking as investors turned their buying to undervalued stocks. The equity buying was caused by positive news about the latest vaccine tests released from a company called Moderna.

Last week was a highly profitable week for Silver investors. Silver increased $1.10 per ounce (almost 7%) closing the week at $16.84 on excellent volume. Since the beginning of May, Silver has increased $2 (13.5%) an ounce in value. After Silver broke out above the key $16 per ounce resistance level, there was no stopping it. Silver reached a high of $18.80 in February 2020 and hit a low of $11.60 in March 2020, an extraordinary amount of volatility even for Silver.

Right now, I believe $17 should fall this week, but $18 per ounce will be difficult to break without a lot of consolidation and base building.

Today: Silver rallied sharply higher with Gold in early trading and moved above the key $17 per ounce resistance level. But, when Gold sold-off on the positive vaccine, Silver held above $17 on fresh buying.

Since late March of this year (as the effects of the coronavirus kicked into our economy), the rare coin market has held three major public auctions. Stacks/Bowers, Heritage, and Legend auction companies all needed to move their auctions from rare coin conventions to their home bases. Surprisingly, the results of their auctions showed an increase in demand and the prices of rare coins valued over $5,000 were better than expected. Additionally, the dealer trading markets and exchanges (Certified Coin Exchange, Coin Net, and Coinplex) saw a sharp increase in buying posts while the number of offerings dropped substantially.

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. It appears that the mintage will not increase, therefore these Philadelphia Mint Silver Eagles should be rare, considering that the estimated mintage for 2020 Silver 1-ounce. 999 Eagles is 30 million. We have submitted these 2020 “P” mint Silver Eagles to PCGS for grading and certification. We expect to receive them within a couple of weeks with a special Emergency First Day of Issue label. We are now accepting pre-orders on these. Link below

American Silver Eagles