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Liberty Coin Service Prediction of March 2020 Comes True! Gold Hits Record High Price As US Dollar Falls
Published on July 29, 2020
“It was clear to us that the multi-trillion-dollar CARES Act of subsidies and bailouts spent funds that the federal government did not have."
At the COMEX close on July 27, 2020, the price of gold reached an all-time record high of $1,931.00. In late March 2020, after enactment of the CARES Act, Liberty Coin Service forecasted that this legislation would result in the US dollar falling in value and gold and silver prices would rise. At the closes on July 27, the US Dollar Index has fallen 9.7% since March 19, while gold was up 31.3% and silver soared 108.5% since March 18.
Said Tom Coulson, owner of Liberty Coin Service, “It was clear to us that the multi-trillion-dollar CARES Act of subsidies and bailouts spent funds that the federal government did not have. Consequently, inflating the money supply to pay for it would hurt the purchasing power of the US dollar. Since this law was enacted, the value of the dollar has fallen against most world currencies and has plummeted against gold and silver. Not only did gold set an all-time record high price yesterday, silver also reached its highest price since April 12, 2013, more than seven years ago! Our customer demand for bullion-priced precious metals is the highest we have experienced in more than seven years.”
Coulson continued, “Global shortages of physical gold and silver inventories have also contributed to rising gold and silver prices. In addition, we are seeing signs that some owners of ‘paper gold and silver’ such as commodity contracts and shares of exchange-traded funds are trying to convert their holdings into physical metals. Because of the falling value of the US dollar and gold and silver shortages, we anticipate precious metals prices will continue to rise in the near future.”
Through the closes on July 27, the 2020 year-to-date results for selected financial assets were:
Shanghai Composite Index: +5.1%
Standard & Poor’s 500: +0.3%
Frankfurt DAX Index: -3.1%
Nikkei 225 Index: -4.0%
Dow Jones World (ex-US) Index: -6.7%
Dow Jones Industrial Average: -6.9%
Australia S&P/ASX 200 Index: -9.6%
Sao Paulo Bovespa Index: -9.7%
Russell 2000 Index: -11.0%
London FTSE 100 Index: -19.1%
10 Year US Treasury Note Interest Rate: -67.7%
Frequently-honored Liberty Coin Service, founded in 1971, is Michigan’s largest rare coin and precious metals dealership. It’s monthly newsletter, Liberty’s Outlook, has won national multiple awards from the Numismatic Literary Guild as the best coin-dealer publication. Liberty Coins, as it is known locally, has been located in Lansing’s Frandor Shopping Center since 1975. The store is open weekdays 9:30-5:00 and on Saturdays 10:00-2:00.
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