Gold & Silver Prices Exploding Higher, Setting New Highs

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	Gold Tops US $1,900 For First Time Since 2011 Mobius Says “Continue To Buy”
	Spot gold topped US$1,900 an ounce for the first time since 2011 and edged closer to an all-time high. . . .Ranjeetha Pakiam and Justina Vasquez, Bloomberg News
	One Of These Silver Days Is Not Like The Other
	Yesterday, the price of silver spiked about 10%. We wrote that it was driven by: “…buying of physical metal.”. . . .Monetary Metals
	Case For Holding Gold
	The Swiss private bank sets out the reason for holding the yellow precious metal in portfolios. The commentary is another turn. . . .Tom Burroughes
	Citi Bank Sees Silver Rising To $25 In The Next Six To 12 Months
	Bullish factors building in the gold market are set to see prices take out the record set in 2011, according to Citigroup Inc. . . .Ranjeetha Pakiam
	Silver Hits $20 For The First Time Since 2016
	For the first time since September 2016, Silver futures just broke above $20. . . . Tyler Durden

Last week was exciting and highly profitable for Gold and Silver owners. The price of Gold increased $90 for the week, closing at $1,897.30 per ounce. Gold hit a high of $1,904 last Friday, a nine-year high, before seeing some light weekend profit taking. Last week’s trading volume was the highest I’ve seen in months, as old and new buyers increased their holdings of Gold. Gold investors spent $3.8 billion in precious metal funds last week, the second largest weekly amount ever, according to data analyzed by Bank of America.

What Is Driving This Increase?

1. The U.S. Federal Reserve and central banks around the globe pumping trillions of dollars, euros, yen and yuan into their financial markets.
2. The U.S. Congress and governments around the world passing COVID-19 stimulus aid programs and legislation to provide trillions to victims of economic problems.
3. Geopolitical tensions are increasing, not only between the U.S. and China, but in Asia and the Middle East.
4. The U.S. Dollar has been dropping; down 5% since the start of July. That has a direct bullish effect on the price we pay for Gold/Silver.
5. Yields on U.S. Treasuries from 2 year to 10 year have been dropping, another positive for the Gold and Silver price.

In the United States, Congress (House of Representatives and the Senate) debated new COVID-19 stimulus legislation last week. I believe we will see the results of those debates passed into law this week. From what I’m hearing from multiple sources, it could be another $2 trillion dollars in aid distributed to unemployed workers, businesses, states, cities, hospitals, schools, and fire/police departments.

As the worth of currencies continues to be devalued around the world, the price of Gold can only go one direction…HIGHER. As many of you know, I have been predicting Gold will reach $2,000 per ounce by year-end since early this year. When I made that prediction, I could not have imagined the extra trillions of dollars/euro/yen/yuan that would be printed, just in the first half of 2020.

What Do I See Next For Gold?

Because of the current momentum, I believe Gold’s all-time high of $1,923.20 (September 6, 2011) will be passed on Monday. Then, I’m hoping for price consolidation. It’s badly needed and should happen during August, between $1,800 and $1,950. That consolidation would be great for Gold to build a firm base for the next move above $2,000 per ounce.

After looking at what is currently happening by governments and central banks around the world, I have revised my year-end Gold prediction. To quickly recap 2020, Gold was $1,519 per ounce at the start and reached a low of $1,450 in March. Since March, Gold has been in a bullish trend, moving higher with an occasional correction. Once the Gold price passes $1,923.20 per ounce, it’s all-time high and in uncharted territory. With media coverage on the all-time high for Gold, it could briefly cause a spike in demand and price. That happened in 1979 and again in 2011, which caused another 5-8% increase in price. Based on these factors and many others, I believe we will see Gold reach $2,200 per ounce before the end of 2020.

Today: A combination of a weaker U.S. dollar and lower yields on U.S. Treasuries fueled the raise for Gold to an all-time high. Gold broke above the past all-time high of $1,923 and kept on going, reaching a high of $1,946 per ounce.

Not only was last week extraordinary for Silver investors, it’s been an extraordinary year. At the beginning of this year, the Silver price was $17.83 per ounce. By March as the pandemic started impacting the economy, the price of Silver dropped to a low of $11.60 per ounce (with the Silver/Gold ratio reaching 120-to-1). From March to July, the price of Silver moved from $11.60 to $18 at an excellent pace with the Silver/Gold ratio dropping. Last week, after exploding through the $20 resistance level, Silver kept on going reaching a high of $23.60 on record-setting high volume. Silver closed the week at $22.80 per ounce, the highest price since August of 2013, up an amazing $3.00. To stay healthy, Silver needs time to build a base above $20 and consolidate recent gains. However, with its current high volatility, it may reach $25 before seeing a major correction. The Silver-to-Gold ratio has dropped to 83-to-1.

Today: Following today’s raise in Gold prices, Silver went into orbit, flying through $24 per ounce, reaching a high of $24.50. Late last week, a good number of professional traders shorted Silver around $23 and this morning they ran to cover those shorts, taking the price above $24.

During the first week of August there will be two numismatic events (not conventions). These get-togethers are happening in Las Vegas, NV and Dallas, TX. There will be a limited bourse dealer trading floor and two numismatic auctions. These events will give me an update on the state of the numismatic market. I expect to see a shortage in material on the trading floor and prices at the auctions to be at the high end of the market.

Demand for Gold/Silver bullion coins is excellent due to higher price and concerns over devaluation of the world’s currencies. Plus, collector demand for PCGS/NGC certified rare coins ranging from $300 to $50,000 has been extraordinary. Prices are moving higher, as availability of graded coins is getting harder and harder to find. Normally the summer months would slow down collector demand, but with the pandemic, collectors are home and, on their computers, buying.

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of Stuppler & Company’s knowledge at this time. Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein. Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability. All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.