Gold, Silver & Rare Coins Moving Higher, And The Future Looks Great

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	World Silver Survey 2020 From The Silver Institute
	Over the few weeks running up to the time of writing (in early April), the COVID-19 crisis has had a. . . .The Silver Institute
	Coin Demand of Little Relevance to the Gold Price
	Demand for gold coins must be seen as a retail sentiment indicator. In the gold space, it is often assumed that. . . .Jan Nieuwenhuijs
	BofA Says Gold to Reach $3,000 in 18-Months 50% Above Its Record
	Bank of America Corp. raised its 18-month gold-price target to $3,000 an ounce. . . .Elena Mazneva - Bloomberg News
	Fed Can't Print Gold- BofA Calls Gold "Ultimate Store of Value" Raises Price Target To $3,000
	Back in April 2011, just before gold exploded to a record above $1,900 following the US credit rating downgrade. . . .Tyler Durden

Last week Gold got back on the bullish track reaching a high of $1,750 on Thursday. Gold closed the week at $1,735, up $45 per ounce on excellent trading volume worldwide. Last Wednesday, we had what looked like an Inter-Day Reversal. Gold opened at $1,695 and traded down to $1,688, then quickly rallied and closed at $1,730, the high of the day. Last week’s rally was in the face of a strong U.S. Dollar Index (moving over 100) and a drop of 14.4% in March U.S. durable goods orders.

On Friday, the President signed a $500 Billion coronavirus stimulus aid legislation. With that addition, the U.S. has already committed over $3 Trillion to stimulate the U.S. economy with more to come. Other countries are also giving away trillions of Euros, Yen, and Yuan to stimulate their economies. Plus, there are additional trillions of Dollars the Federal Reserve is adding to the financial system.

Speaking of the Federal Reserve, it’s important that you read one of our attached articles called “Fed Can’t Print Gold”. This article incorporates Bank of America’s prediction that Gold will reach $3,000 per ounce within 18 months.

Today: The Bank of Japan (BOJ) announced major financial stimulus measures. The BOJ promised to buy government bonds “without upper limit”; this is very aggressive. The European Central Bank is scheduled to announce their stimulus measures this week. The BOJ announcement helped equity markets, which put pressure on the Gold price, which dropped $12 per ounce.

Since 2001, when the price of Gold was $270 per ounce, until today with the Gold price over $1,700 per ounce, I have helped over 10,000 investors buy Gold bullion and investment Gold. During that period, the fundamental reason for owning Gold as part of a diversified investment strategy has continued to improve. As the U.S. and foreign governments print 10’s of trillions of Dollars, Yen, Yuan, and Euros to bail out troubled companies and stimulate their economy, having physical Gold in your possession is a must.

Looking at the coronavirus aid packages, which will cause a deterioration of the value of global currencies, I believe Gold is a better value today at $1,700, than it was in 2014 at $1,070. Additionally, Gold today has become a more acceptable investment for the mainstream investor. So, why do many investors refuse to average up by adding to their holdings at current prices? After listening to a client last week who made a sizeable Gold investment at $1,070 back in December 2014, it became clear. I needed to ask him why he didn’t respond to the many offerings we sent him during the past 6 years. His answer was, “Well, I had the money, but I just did not want to increase my average cost.” I needed to make the point that it is not prudent to build up currency assets (stocks, bonds, investment real estate, and savings accounts) during a period when interest rates are so low, and governments are printing more and more currency to offset sizeable budget deficits. The price increases in Gold over the past years is a direct result of government debt, which now is increasing at an extraordinary and scary pace.

The current U.S. debt is almost $25 trillion and growing, and the total debt to GDP ratio is over 125%. At this point, we are beyond what is referred to as “The Tipping Point of Debt”. It is impossible to reverse this trend, and, in the current environment, the situation is just going to get worse, and a massive devaluation of the U.S. Dollar versus Gold is on the horizon. IT’S TIME TO QUICKLY ADD TO YOUR CURRENT GOLD HOLDING.

Last week Silver traded between $14.56 to $15.72 per ounce. By Friday, Silver was able to hold above the key $15 per ounce support level, closing at $15.26, up $0.03 for the week. As I watched Silver trading last week, it was clear the price was taking direction from Gold. With Gold above the key $1,700 level, I expect to see Silver stay above the $15.00 level.

Many popular physical Silver investment products remain in short supply, as many of the world’s largest mints and mines are closed. The U.S. West Point Mint just reopened, but it is back ordered on the popular one-ounce Gold and Silver Eagles. The Silver Institute just released its yearly World Silver Survey. Please take a few minutes to read it with the link above.

Today: The Silver price held up well in the face of a drop in the Gold price this morning. Silver tested the important $15 per ounce support level and held. Silver is now trading higher for the day.

Last week, I received a call from a long-time client/collector who had a great question. Why don’t I provide an update on the rare coin market in the Weekly Market Report?
I had no good reason, because the precious metal market has been so exciting over the past five years, I just dropped the ball. So, from now on there will be a section on the “State of Numismatics” in each Weekly Market Report.

2020 has seen a major change in the U.S. Gold and Silver bullion and rare coin values. At the beginning of the year, the Gold price was around $1,530 per ounce. At that time, we were offering U.S. $20 Gold Saints and Liberties in BU condition at Gold plus 2% and we had a couple hundred in inventory. A combination of much higher Gold prices and substantially more demand has caused the price to increase. Now the premium has increased to 8% over Gold and we are completely out of stock. Premiums on popular bullion items (Gold/Silver Eagles and Maple Leafs) have increased by 3 to 5 percent. And, with mints and mines closed and a supply shortage, it’s highly unlikely this trend will change soon.

As for the numismatic market, recent Stacks/Bowers and Heritage auctions showed an increase in demand and values on rare coins valued over $5,000. Plus, the dealer trading markets and exchanges has seen a sharp increase in buying posts while the amount of offerings has dropped substantially.

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.