It’s Time to Add More Gold and Silver at a Great Price

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	Gold Sales Boom in China Amid Spring Festival Holiday
	According to the China Gold Association, gold consumption rose by more than 80 percent year-on-year during this year's Spring Festival holiday . . . . Gao Ang
	Yellen Sounds Warning About ‘Extremely Inefficient’ Bitcoin
	Treasury Secretary Janet Yellen issued a warning Monday about the dangers that bitcoin poses both to investors and the public.. . . .Jeff Cox
	Institutional Investors Turn To Gold
	In the face of historically low interest rates and chronically depressed bond yields, institutional investors are turning to gold as a portfolio diversifier. . . . Kelsey Rolfe
	Silver's Clean Energy Future
	We live in unprecedented times. As the world's population grows and industrialization takes hold in more corners. . . .Maria Smirnova

February was a dreadful month for Gold investors, as the price declined $119, closing last Friday at a new 2021 low of $1,729 per ounce. The 10-Year Treasury interest rate reached a 1-year high of 1.55% last Friday, up over 200% since August of 2020. This increase in interest rates caused a broad sell-off in commodities on Friday. Not only did precious metals drop, but many commodities from energy to grains declined on Friday. Higher interest rates also provided support for the U.S. Dollar Index (reaching 91), which also put pressure on the price of Gold and Silver. The Federal Reserve Chairman Powell clearly stated last week the Fed “has plenty of opportunities to stem surging Treasury yields”. After that statement, I would be surprised to see interest rates move substantially higher.

Many precious metal analysts feel that the passage of the $1.9 trillion Covid-19 Relief legislation will help the price of precious metals. However, even with the passage of this legislation in the House of Representatives last week, the Biden administration doesn’t currently have the votes right now in the Senate for passage. The main argument against this new stimulus package is that there is still over $1 trillion unspent from the past aid legislations. Plus, most of the money from this new relief bill will go to a lot of special interest projects and much of the money would not be spent until 2022.

The Gold price has been in a downward trend since the beginning of the year, but many buyers historically get aggressive when they see a bargain price, and Gold under $1,750 is a bargain.

I expect to see sizeable increases in March demand from Chinese & Indian buyers as well as many of the major central banks and institutional buyers. As for U.S. buyers, we already have shortages of many popular Gold and Silver bullion items from government mints who are backordered. This recent price correction will only cause premiums to move higher on Gold and Silver bullion items. The best Gold value right now is the Pre-1933 bullion plus U.S. and European coins.

Today: The Gold price had a strong rally, reaching $1,761 in Asia and Europe this morning as the 10-Year Treasury reached a low of 1.38%. But, when the markets moved into the U.S. the treasuries rallied and Gold saw short-term profit taking, driving the price down below $1,740 per ounce.

Last week was sure crazy for the Silver investors. Silver hit a high of $28.42 and a low of $26.18 on Friday, closing at $26.40 for the week, down $0.85 per ounce. Wow, a $2.24 range from high to low on sizeable trading volume, which shows you just how volatile the Silver price can be.

It’s clear, while $26 is the support level, $28 per ounce is resistance breakout level. Silver has closed twice above the key $28 level. I believe the next time Silver breaks above $28 we will
see $30. The Silver-to-Gold ratio moved to 65.48-to-1, and I believe we are heading to 50-to-1.

Today: Silver reached a high of $27.20 per ounce when Gold was trading over $1,760. Then Silver sold off with Gold when the markets rolled into the U.S. and reached a low of $26.70. At that price fresh buying jumped in and the price rallied back up to $27 per ounce.