Gold & Silver Continue To Build A Firm Base Before The Next Rally

CLICK HERE FOR NEW Morgan Silver Dollars

CLICK HERE FOR NEW Peace Silver Dollars

CLICK HERE FOR NEW $20 Gold Saint Gaudens

	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
	Silver Is Due for An EPIC Mean Reversion Relative to Gold
	After being pummeled to record-low levels relative to gold, an epic silver mean reversion higher is underway. . . .Adam Hamilton - Zeal LLC
	Central Banks Continue To Buy Gold As Safe Haven Asset
	The World Gold Council (WGC) says central banks have continued to be net purchasers of gold in March. . . .Marleny Arnoldi
	Silver Is Ridiculously Cheap Relative to Gold
	Silver is historically cheap relative to gold. The gold/silver ratio – the gold price divided . . . . Clint Siegner
	Gold As an Investment Is Made For Times Like These
	The yellow metal is poised to hold its purchasing power as the Federal Reserve prints money on a massive scale - Jared Dillian

Gold continues to trade above and below the key $1,700 per ounce support/resistance level since April 9th. Gold ended the week at $1,710 per ounce, up $12 per ounce in the face of an April U.S. employment drop of 20 million jobs, plus, the Commerce Department reported last week that the trade deficit jumped 11.6%, the largest rise since December 2018, to $44.4 billion. The U.S. Federal Deficit has now exceeded 25 trillion on the way to 28 trillion by year end. But, the U.S. and governments around the globe continue to print money to stimulate their economies. 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”.This is a link to the article.

I believe we are 9 to 15 months away from seeing a sizeable uptick in inflation, and 24-36 months from seeing hyper-inflation. Why? It will probably take about a year for the world’s leading economies to work through the contraction we are seeing right now. Once we have a vaccine for the coronavirus and the vaccinations are available, we can start getting back to a modified normal. (A spokesman from Johnson & Johnson feels we could have a vaccine by year end). When that happens, the stimulus money will result in seeing hyper-inflation for precious metals and investibles (investment quality rare collectibles). Demand for rare Gold and Silver U.S. coins will drive prices much higher.

Gold and Silver coins are the best way for investors to protect themselves from watching the buying power of their life savings being destroyed. I believe we will see a sharp increase in the value of Gold and Silver soon. I recommend increasing your holdings NOW.

Today: Gold continues to trade in a tight range between $1,690 and $1,710 per ounce. Gold is showing firm support as it builds an excellent base for the next leg higher.

Last week was a good week for Silver investors. Silver increased $0.88 per ounce (almost 6%) closing the week at $15.74 on excellent volume. Silver was up every day last week, as demand grew throughout the week. If the Gold price can move forward $1,750, I believe Silver could break $16 per ounce. The Silver/Gold ratio dropped to 108-to-1 last week.

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 this Philadelphia Mint Silver eagles will be available later this month at a premium. I’ll provide an update in next week’s Weekly Market Report.

Today: Silver showed excellent demand earlier today, reaching a high of $15.85 before selling off with Gold. Right now, I’m seeing firm demand above the key $15.50 level.

We have hundreds of collectors that are building U.S. Gold Proof Eagle and Buffalo collections. Every year these collectors eagerly look forward to the new coins issued by the U.S. Mint. We submit these proof gold coins to PCGS and NGC for the Proof-70 (prefect) grading. This year, the U.S. Mint issued the 2020 Proof Gold Eagle and 2020 Proof Gold Buffalo in March and April respectively.

When the 2020 coins were released, PCGS was temporarily closed and we could only submit to NGC initially. However, two weeks ago PCGS reopened. As such, we were able to submit these coins right away with First Day of Issue and First Strike classifications. Proof Gold Eagles have been graded by PCGS and Proof Gold Buffalos are starting to be released. David has been contacting our clients and confirming orders and prices for any client requesting first access with wholesale pricing. If you are interested in picking up a 2020 Proof Gold Eagle or Buffalo, please look at the following links and/or contact [email protected]

Proof Gold Eagles

Proof Gold Buffalos