Gold And Silver Finally Back On The Bullish Track

CLICK HERE FOR NEW Morgan Silver Dollars

CLICK HERE FOR NEW Peace Silver Dollars

CLICK HERE FOR NEW $20 Gold Saint Gaudens

	3 Reasons To Be Bullish On Gold In 2021
	After an impressive performance in 2020, gold has firmly entered a new bull market. . . .Everett Millman
	Why Silver Prices Could Realize Huge Benefits From Surge In Solar Panels And 5G Demand
	Silvers value is expected to rise as demand for solar panels and 5G increases over the next decade. . . .PRNewswire
	German Retailers Report Run On Gold And Silver
	German precious metals dealers report a rapid increase in demand for gold and silver following the announcement of a harsh nationwide lockdown. . . . Eingetragen von
	Silver Price To Rally 30% In 2021 As Industrial Demand Bounces Bank
	While gold will continue to attract a lot of attention in 2021 as prices are expected to reach new all-time highs. . . .Neils Christensen - Kitco News
	Could Inflation Be The Next Big Thing?
	In our assessment, inflation risk is skewed to the upside. We base that conclusion, at the risk of looking foolish, on unfashionable monetarist theory. . . . Stéphane Déo

Last week, Gold moved back above the key $1,850 resistance level on Tuesday. On Thursday, the rally continued as the U.S. Dollar Index dropped below 90 (3-year low), and news of a COVID-19 stimulus looked promising. After reaching a low of $1,762 on November 30, Gold hit a high of $1,898 on December 17, definitely back on a bullish track.

There are many excellent long-term reasons why Gold will continue to set record highs over the next couple of years, but for right now there are three strong short-term reasons that are driving the Gold price higher. They are: a continued drop in the U.S. Dollar Index, the massive monetary liquidity provided by the Federal Reserve, and the pending $908 billion COVID-19 stimulus aid legislation from Congress. The COVID-19 aid legislation was finally agreed upon last night and hopefully, it will be signed into law today.

Why is Gold heading much higher? President-elect Biden has already stated that this $908 billion aid package is only the start of much larger COVID aid legislation. Plus, last week Fed Chairman Powell clearly stated the Fed will be very accommodating to the financial markets. This means, they will receive all the money they need, whenever they need it. This news, combined with European and Asian governments printing massive amounts of euro, yen and yuan for COVID aid funding, means the Gold price is heading to record all-time highs by early 2021.

Today: After an agreement was reached on the $908 billion stimulus bill was announced last night Gold rallied. In Asian trading, Gold reached a high of $1,906 per ounce. However, as the Gold market rolled into Europe the U.S. dollar started to rally and Gold quickly sold off. The Dollar rallied because of a new coronavirus variant in England, which is feared to be much more dangerous. This caused the euro to fall and the dollar to rally, driving the price of Gold down to a low of $1,852 per ounce. Gold quickly rallied back to unchanged on bargain buying.

Silver investors had a smile on their faces all last week, as Silver rallied $1.94 (8%), closing on Friday at $25.95 per ounce. Although Silver led last week’s precious metal rally, it was helped by a stronger Gold price and a weaker U.S. Dollar Index.

However, inflation is a strong element for any Silver rally. In anticipation of serious inflationary numbers later this year caused by this COVID-19 stimulus bill, I believe the Silver price will outperform Gold in the coming weeks.

But, as we see more massive amounts of currency be printed worldwide, Silver and Gold prices will rally. Other bullish factors for the Silver price is the commitment to solar panels and 5G from the incoming administration (see article above). The Silver-to-Gold ratio decreased last week to 72.56-to-1.

Today: Silver did benefit more this morning from the stimulus bill, first reaching $27.50 per ounce on massive buying in Asia. Then, when the Gold price got hit in Europe, it fell to $25.50. Silver did rally back with Gold as the markets moved into the U.S. We are seeing much more volatility in the Silver price movements compared to Gold and that should continue for a while.

2020 was an excellent year for numismatics. Most dealers report record sales of the very popular U.S. Silver and Gold coin series. U.S. $20 Gold Saints and $10 Gold Indians were particularly popular with new and established collectors. Many on-line auction sites and traditional auction companies have picked up thousands of new collectors. Recent auctions have shown record demand and higher prices. I expect to see 2021 as a great year for numismatic collectors.