Seven Reasons Why Will Run in 2021!

Gold’s BULL RUN in the Post COVID Economy

Call 1-(800) 892-0775 The World Has Been Forever Changed.

“Covid-19 has disrupted our social and economic order at lightning speed and on a scale that we have not seen in living memory.” — Kristalina Georgieva - Managing Director of the IMF

The notion that the U.S. economy, businesses, and households will return to normal in 2021 is not only wishful thinking, it reflects a fundamental misunderstanding of the degree of disruption caused by the economic and social events of 2020. The financial shock caused by COVID-19 was historic. The printed massive amounts of to support its deficit spending which included unprecedented securities purchases, loans to banks and corporations, small business assistance, and direct payments to American families.

But millions remain unemployed, and experts suggest the recovery will be slower than previous downturns because the contraction of 2020 was unlike anything the U.S. or the world has ever seen. COVID-19 has driven global debt to record highs paralyzing economies across the globe. American households continue to grapple with unemployment, uncertainty, social distancing, shutdowns, and the struggles of remote learning. Experts predict that some U.S. jobs will never come back as various sectors of the economy have been forever changed. Inflation is also poised to return, and its effects could be exacerbated by a new President that plans to raise taxes and re-regulate the energy the labor sectors at a greater cost to consumers. And as lockdowns ease and the stay- at-home economy shifts, look for a massive economic disruption, as the most exuberant stock rally in history could finally tumble back down to earth.

These are the precise monetary, economic and political conditions that have propelled gold for generations and should continue to fuel its upward trajectory in 2021. Here are the Seven Reasons to be bullish about holding gold this year.

REASON #1: COVID-19 It is a scourge by any other name. To call COVID-19 a mere virus, doesn’t do it justice in the annals of social and economic history. It has been both a boiling point and a breaking point that has not only upended daily life for millions around the world but forever changed business, communication, human interaction, education, travel, and our sense of safety and security. The virus revealed the fragility of the U.S. healthcare system, disaster response, CDC guidance, global supply chains, small business infrastructure, social systems and the network of human relationships. It also exposed the disruptive power of fear and chaos as panicked buying triggered critical shortages of essential goods, foods and cleaning supplies. Despite the development of effective vaccines, some experts contend that COVID-19 may never leave us and could, in fact, become embedded in the population. Others suggest that it will only end when enough people have been infected or vaccinated — which could take years. An ongoing coronavirus threat is a rallying cry for safe havens that have historically maintained their value throughout the course of human history and there is perhaps no greater example than physical gold.

Call 1-(800) 892-0775 2 REASON #2: Unprecedented Federal Stimulus In 2020, the U.S. Federal Reserve revisited the Great Recession playbook of slashing interest rates to zero and dusting off quantitative easing measures not used in over a decade. The Federal deficit and the national debt have both hit all-time highs. COVID-19 relief in particular, which includes the Coronavirus Preparedness and Response Supplement, Families First Coronavirus Response Act, the CARES Act, the Paycheck Protection Program and various Executive Actions signed by President Trump, totaled over $3.5 trillion. This does not include the $900 billion coronavirus relief bill signed by President Trump late last year. The government’s debt is now on course to exceed GDP in 2021. Excessive debt results in higher interest rate payments, tax hikes, cuts to public services, and a looming fiscal meltdown. Massive increases in the money supply can also spark inflation which would send investors flocking to gold, a known inflation hedge.

REASON #3: A Very Slow Recovery A force as disruptive as COVID-19 will not dissipate overnight. It infected over 83 million people, killed close to 2 million, incapacitated the world economy, destroyed livelihoods, and pushed millions into government assistance and millions more into poverty. It also exposed the economic frailty of globalization.

A United Nations Conference on Trade and Development (2020) suggests that the world economy contracted by 4.3% last year and the economic shock to global trade, investment, and financial systems could last for years. A McKinsey & Company report estimates that the most impacted sectors of the U.S. economy: Entertainment, Food Service, Transportation, Education and Manufacturing could take as long as five years to recover as scores of restaurants, factories, schools and retail stores were either shuttered or experienced limited activity through much of last year.

Call 1-(800) 892-0775 3 This resulted in both a supply and a demand shock — namely a dramatic contraction in economic activity and a simultaneous upsurge in unemployment. With coronavirus cases now expected to remain high through early 2021, economists have slashed U.S. economic growth projections for first quarter. A reported two-thirds of American consumers have cut back on spending, and thousands of small businesses have closed for good. This translates to an economic recovery that will be both sluggish and uncertain which are ideal conditions for the safety and security of gold.

Reason #4: A Supply and Demand Crisis It’s no secret that global gold supply took a hit in 2020. Mine production was either reduced or completely halted. During the summer of 2020, a COVID outbreak at the U.S. Mint caused a reduction in gold and distribution. The grounding of commercial flights also disrupted the movement and delivery of precious metals. As the economy faltered, the demand for gold soared and a critical shortage ensued. Certain gold became unavailable, while others could only be obtained by paying a steep premium.

One-ounce gold coins and bars quickly sold out as did larger gold kilo bars and 1,000 oz silver bars. Some mints sold their entire year’s supply of bullion during the crunch. Desperate dealers tried to buy back coins and bars for a premium while others compiled gold buyer waiting lists. Needless to say, the COVID-induced downturn caused bullion stockpiling which pushed gold prices up 25% and silver a whopping 45% last year. If economic conditions normalize in 2021, jewelry and industrial demand should pick up dramatically. If there’s a hiccup, however, investment hoarding could resume and if the mining sector has not regained lost capacity, the run-on precious metals could trigger a sizable price explosion.

Reason #5: The Return of Inflation Monetary expansion causes inflation and the trillions of dollars spent on the pandemic’s economic carnage has increased chatter about inflation making a comeback in 2021. Inflation is not something that has been top- of-mind since the 1980’s when it catapulted to double digits. In the last ten years, however, it has barely broken 2%. While the Quantitative Easing of the Great Recession did not lead to a massive spike in prices, experts believe the federal coronavirus response is different.

In 2020, the Fed made loans to security firms, banks, and large corporations. They unleashed massive lending programs for small businesses, propped up non-profits and municipal governments, and made direct payments to U.S. households. This has created a private sector flush with cash. As the world becomes vaccinated, the virus subsides, and the economy re-opens — a voracious U.S. consumer will be eager to shop and spend, causing severe inflationary pressure.

Call 1-(800) 892-0775 4 It’s important to recall precisely what inflation is. Investopedia defines it as “a measure of the rate of rising prices of goods and services in an economy” which applies to things like food, cars, and clothing as well as housing, energy and medical care. Inflation reduces our purchasing power as everyday items seem to cost more and our money seems to buy less. It also lowers the value of pensions, decreases the return on savings, and typically triggers an increase in interest rates on loans. Inflation also causes economic uncertainty which can undermine both consumer and business confidence. Unlike paper money and equities, gold is resistant to inflation and has been a reliable hedge since it rises at the same rate as inflation. In other words, gold increases in value as the value of the dollar decreases.

Reason #6. A Weakened U.S. Dollar The U.S. dollar ended 2020 down more than 7% and dropped precipitously from its highs during the coronavirus lockdowns which triggered a spike in demand for greenbacks. But rock bottom interest rates, historic money printing, and the economic hope brought by new coronavirus vaccines from Pfizer, Moderna and AstraZeneca have all contributed to the weakest dollar in three years. Forecasters are expecting more weakness ahead as investors gravitate toward riskier assets in search of yield. In a recent Reuters poll, two-thirds of analysts expect the dollar to continue to slide until at least mid-2021. Goldman Sachs, UBS and Société Générale are also forecasting more losses for buck. Much hinges on the world economy re-opening which is tied to the successful vaccine rollouts and the trajectory of infection rates.

If COVID-19 finally does subside and the global economy rebounds, other assets will become more appealing. The euro is projected to rise against the dollar through 2021 and the absence of trade tensions with China in a Joe Biden presidency, should also benefit the yuan. A weak dollar is a coup for gold prices since the is priced in dollars. So, when the greenback is weak — gold becomes cheaper to acquire in other currencies and this triggers significantly greater demand.

Reason #7. The Great Political Divide The partisan divide between American voters grew farther and wider in 2020. The gap between liberals and Conservatives, Republicans and Democrats has never seemed greater. According to a recent PEW Research poll, just 21% of Americans see things getting better in the coming year while 37% expect political divisions to get worse. Over 74 million Americans, (47% of the country) voted for Donald Trump as the election of 2020 saw some of the closest state races in U.S. election history. President Biden will now face a nation steeped in resentment on one side and stewing about social reform on the other. The country is at odds over the role of government, the honesty of the media, the sanctity of U.S. elections, and the presence of systemic racism throughout American society. Biden’s pledge to change immigration enforcement, reimagine policing, fight global warming, eliminate cash bail and enact a variety of gun control measures is an affront to many on the right, while not doing so is equally distressing to those on the left.

Call 1-(800) 892-0775 5 The new president has appointed Obama-era retreads in what many are calling Barack Obama’s third term. But in a deeply divided nation that enjoyed the economic benefits of Donald Trump’s pro-business, pro-growth, America-first agenda — will that unify the country? On top of these vast political divisions, Joe Biden is inheriting a pandemic, an economic crisis, high unemployment, a small business calamity and a maxed-out U.S. Federal Reserve. It is a tall order for any president and made more vexing by a country caught in a cycle of hyperconflict and deep polarization.

If Biden fails to deliver or quell the uncertainty, tamp down the volatility, or heal the national divide in 2021, look for gold to rise again just as it did throughout the past year.

Gold’s Win-Win for 2021 In 2020, the sudden and aggressive onslaught of the COVID -19 pandemic prompted a dramatic social and economic disruption that triggered both supply and demand shocks. From retail stores to restaurants and airlines to hotels — the global economy was rocked by wild swings in consumer spending.

The World Gold Council’s 2021 Outlook aptly summarizes how the pandemic fueled economic risk and uncertainty last year and how gold benefited from the ensuring volatility. Gold, in fact, outperformed most major asset classes including the S&P 500, Global Treasuries and U.S. Corporates.

But despite the arrival of vaccines, an improvement in unemployment and the percolation of new economic growth in 2021 — portfolio risks remain as investors must now contend with what the WGC calls: “ballooning budget deficits, inflationary pressures and market corrections amid already high equity valuations.” This will make gold an attractive safe haven throughout the new year. Further, in the event of a nascent global economic recovery, gold demand will likely increase in places like India and China, two of the world’s largest gold-consuming nations, making it a win-win asset for 2021 from a demand perspective.

Call 1-(800) 892-0775 6 We also cannot overlook the fallout from the massive stimulus efforts and the sheer size and scope of the monetary rescue missions launched by governments around the world to prop up the global economy. In the U.S., in particular, the risks from expanding budgetary shortfalls and increased money printing could trigger a fast-depreciating dollar and sudden inflationary pressure.

As the WGC has pointed out, gold has kept up with the ever-growing money supply, and there’s no indication that the run-on cash will stop anytime soon.

So, despite the best efforts of pandemic policies and helpful governments, COVID-19 has dramatically changed how the world does business, and there’s lingering apprehension about the recovery. There are also big political questions being posed as a new U.S. administration implements new policy. Is now a good time to raise taxes on anyone? Will an increase in centralized regulatory power slow economic growth? Will attempts to shut down the oil industry cause massive job loss? As America confronts the winter ahead, precious metals offer rare comfort, security and safe harbor from all the economic uncertainty to come in 2021.

In 2020, gold rose more than 20%. Analysts expect that trend to continue this year with some projecting the precious metal will hit historic highs. The main triggers of gold’s run in 2021 are the same price movers that have propelled gold throughout history: massive money printing, the threat of inflation, a weak dollar and a cloudy economic outlook. Gold’s 2021 bull run is underway, and the time to diversify your portfolio with physical gold is right now.

Call 1-(800) 892-0775 7 Certified $50 Gold Eagle - 2021 MS-70 This is an enduring and sought-after American coin that has dazzled investors since the Great Depression. The Gold Eagle program has become the international standard for the acquisition of bullion worldwide.

The 2021 Gold Eagle is 1 troy ounce of pure gold, certified by the U.S. Mint. It is graded by the Professional Coin Grading Service (PGCS) as being Mint State 70, which the service describes as “fully struck and lustrous, free of visual marks.” The PCGS has also certified that these Gold Eagles are First Strike (FS) which means they were issued in the first 30 days of the Mint’s release, a designation that adds to the coin’s value.

The coin has a face value of $50 which is fully backed by the United State Government as U.S. legal tender.

The coin features classic American coin artistry. The obverse depicts the iconic Augustus Saint-Gaudens design of “Liberty” walking in flowing robes with her torch held aloft to light her way and clasping an olive branch as a representation of peace. She is engulfed by the rays of the sun as she ambles away from the U.S. Capitol building visible in the background.

The reverse is the famous Miley Busiek image of a majestic bald eagle clutching an olive branch in its talons, and dramatically descending on its family waiting in a nest. Inscriptions include “UNITED STATES OF AMERICA,” “,” “,” along with the weight, purity, and denomination.

Each Certified 2021 Gold Eagle arrives sonically sealed in a crystal-clear acrylic holder emblazoned with a special American Flag, “First Strike” label. These coins are not available direct from the U.S. Mint but only through approved bullion distributors like Houston Coin & Bullion.

Call 1-(800) 892-0775 8 $20 Saint-Gaudens MS-61 Could this be the most beautiful U.S. coin ever minted? The Saint-Gaudens Double Eagle is a twenty-dollar masterpiece that was produced by the from 1907 to 1933 at the Philadelphia, Denver, and San Francisco Mints. The coin got its “double eagle” nickname simply because its face value was twice that of the $10 coin

Each coin contains 0.9675 troy ounces of pure gold. Its face value of $20 is clearly imprinted on the coin’s reverse in bold, capital letters.

The $20 Saint-Gaudens Double Eagle Coins are graded to guarantee a Mint State 61 condition which the Numismatic Guaranty Corporation (NGC) describes as a coin with “weak or average strike with no trace of wear.”

The coin’s name references its designer, Augustus Saint-Gaudens, an American Sculptor of the Beaux Arts era which was the dominant form of architecture in the late 19th and early 20th century. It was influenced by classical architecture from ancient Greece and Rome. Saint-Gaudens designed both the obverse and the reverse of the “Double Eagle.” The obverse features Saint-Gaudens iconic figure of “Liberty” marching boldly into the future with peace and light. The reverse features a U.S. eagle soaring into the sun etched in stunning detail and in perfect profile. Throughout its run, slight changes were made to the design including the addition of the “In God We Trust” motto after 1908 and two stars around “Liberty” when New Mexico and Arizona became states.

The $20 Saint-Gaudens Double Eagle MS-61 arrives in a protective case. It is a coveted piece of American history and nostalgia but be aware — these coins are currently experiencing unprecedented demand.

Call 1-(800) 892-0775 9 $10 Indian Head Gold MS-61 A timeless collaboration between Augustus Saint-Gaudens and President Theodore Roosevelt, the $10 Indian Head Gold Coin (MS-61) is one for the ages. The coin’s design was the result of Roosevelt’s call for more artistic merit in American coin making, and the $10 Indian Head, is the result of that presidential mandate.

While Saint-Gaudens did not live to see the coin released, it is considered one of his greatest classical numismatic achievements since the design is reminiscent of the high-relief coins of Ancient Greece.

This coin is 90% gold and 10% . It was first minted in 1907 and produced every year until 1916, and then struck again in 1933. The coin was minted at the Philadelphia, Denver and San Francisco Mints.

The $10 Indian Head is considered a rare coin and one that has retained its popularity after more than 100 years. The obverse of the coin features Saint-Gaudens “Liberty” in traditional Indian headdress as insisted upon by Roosevelt. There are 13 stars across the top of the coin which represent the original 13 states of the union. The year is shown at the bottom. The image of “Liberty” is so detailed, that the quill and tips of the feathers on the headdress are clearly visible.

The reverse depicts a powerful bald eagle clasping an arrow and an olive branch. Above the eagle’s right wing is E PLURIBUS UNUM or “Out of Many One.” And, by the bird’s stout chest is the motto, “In God We Trust,” the official motto of the United States.

Many of these coins were melted in the late 1930’s making surviving specimens both rare and desirable. The coin is offered in a clear presentation case.

Call 1-(800) 892-0775 10 The 2021 ½ oz. $25 American Gold Eagle It’s a new day for the American Eagle Coin program as 2021 marks its 35th anniversary. By midyear, new reverse designs will be released making this the last original version of the Gold Eagle that investors have coveted for decades. This coin design has been the standard bearer of the American bullion program since 1986. The American Gold Eagle was authorized as the official gold coin of the United States by the Act of 1985. It has been in high demand since its original release back in the Reagan era.

The 2021 ½ oz. American Gold Eagle is minted from 22-karat gold (.9167 in purity). It has a face value of $25 USD and is backed by the Government of the United States.

The obverse showcases the renowned image of Lady Liberty timelessly captured by Augustus Saint-Gaudens. She strides boldly forward, amid a burst of sunshine — holding a lit torch in one hand and an olive branch in the other as the dome of the US Capitol peaks out from beneath her flowing robes. The reverse is the equally famous Miley Busiek image of a family of bald eagles waiting at their nest as a larger eagle descends with broad, raised wings holding an olive branch.

These coins are available in brilliant, uncirculated condition and arrive in protective, plastic housing. They are a boon for collectors or anyone looking to diversify their retirement assets or hold a critical hedge against market and/or economic volatility.

At Houston Coin & Bullion our representatives are standing by to answer any questions you may have about adding the safety, security and opportunity of gold to your portfolio in 2021. Call 1-(800) 892-0775 A Live Operator is Waiting!

Call 1-(800) 892-0775 11 Bibliography Ahmed, Saqib Iqbal [2020]. “Analysis-Investors bet weak dollar will keep risk rally going in 2021.” Reuters. Retrieved on January 2, 2021 from https://www.reuters.com/article/usa-dollar-impact-yearend-analysis/analysis-investors-bet-weak-dollar-will-keep-risk-rally-going-in-2021- idUSKBN28X0KO Amaro, Silvia [2020]. “‘Attack of the debt tsunami’: Coronavirus pushes global debt to record high.” CNBC. Retrieved on December 31, 2020 from https://www. cnbc.com/2020/11/19/coronavirus-drives-global-debt-to-a-new-record-high.html Berger, Rob [2020]. “5 Breathtaking Numbers Reveal The Unsettling Cost Of Stimulus.” FORBES. Retrieved on December 31, 2020 from https://www.forbes.com/sites/robertberger/2020/10/18/5-big-numbers-reveal-the-unsettling-scope-of-stimulus-spending/?sh=591e3d- 142b7c Curran, E., Jamrisko, M., Bosley, C. [2020]. “Ten Ways Covid-19 Has Changed the World Economy Forever.” Bloomberg. 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Retrieved on January 3, 2021 from https://www. kitco.com/news/2020-12-18/Why-gold-price-will-rally-to-new-record-highs-in-a-new-normal-analysts.html Gomez, Vianney [2020]. “Democrats more optimistic than Republicans that partisan relations in Washington will improve in 2021.” Pew Research Center. Re- trieved on January 2, 2021 from https://www.pewresearch.org/fact-tank/2020/12/01/democrats-more-optimistic-than-republicans-that-partisan-relations-in-washington-will-improve-in-2021/ Green, Dominic [2020]. “Why Joe Biden is Headed for Failure.” The National Interest. Retrieved on January 3, 2021 from https://nationalinterest.org/feature/ why-joe-biden-headed-failure-174926 Hobson, Peter [2020]. “After golden year for precious metals, silver set to shine in 2021.” Reuters. Retrieved on January 3, 2021 from https://www.reuters.com/ article/global-precious-graphic/graphic-after-golden-year-for-precious-metals-silver-set-to-shine-in-2021-idUKL4N2JB247 Imbert, Fred [2020]. Fed’s Mester says recovery will be ‘a slow one’ and more economic support is needed.” CNBC. Retrieved on January 1, 2021 from https:// www.cnbc.com/2020/08/28/feds-mester-says-recovery-will-be-a-slow-one-and-more-economic-support-is-needed.html Knoema [2020]. “US Inflation Forecast: 2020, 2021 and Long-Term to 2060 – Data and Charts.” Retrieved on January 4, 2021 from https://knoema.com/kyae- wad/us-inflation-forecast-2020-2021-and-long-term-to-2060-data-and-charts Lu, Marcus [2020]. “This chart shows how debt-to-GDP is rising around the world.” World Economic Forum. Retrieved on December 30, 2020 from https:// www.weforum.org/agenda/2020/12/global-debt-gdp-covid19/ Market Watch [2020]. “US Dollar Index.” [chart] Retrieved on January 4, 2021 from https://www.marketwatch.com/investing/index/dxy/chart McKinsey & Company [2020]. “COVID-19 recovery in hardest-hit sectors could take more than 5 years.” Retrieved on January 1, 2021 from https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis/charting-the-path-to-the-next-normal/covid-19-recov- ery-in-hardest-hit-sectors-could-take-more-than-5-years Meraw, Shannon [2020]. “What’s the Fed doing in response to the COVID-19 crisis? What more could it do?” Brookings. Retrieved on December 30, 2020 from https://www.brookings.edu/research/fed-response-to-covid19/ Mills, Richard [2020]. “The Coming Supply Crunch.” GoldSeek retrieved on January 2, 2021 from http://news.goldseek.com/GoldSeek/1586275200.php Mulligan, Casey B. [2020]. “The Real Cost of Biden’s Plans.” The Wall Street Journal. Retrieved on December 30, 2020 from https://www.wsj.com/articles/the-re- al-cost-of-bidens-plans-11600296958 Musto, Julia [2020]. “David Webb: Joe Biden is a ‘dangerous’ pawn for the far left.” Fox News. Retrieved on January 2, 2021 from https://www.foxnews.com/me- dia/david-webb-joe-biden-pawn-far-left Riedl, Brian [2020] “Coronavirus Budget Projections: Escalating Deficits and Debt.” Manhattan Institute. Retrieved on January 3, 2021 from https://www.manhattan-institute.org/coronavirus-cbo-budget-deficit-projection Saefong, Myra P. [2020]. “Gold Prices Have Soared. Expect More of That in 2021.” Barron’s. Retrieved on January 3, 2021 from https://www.barrons.com/articles/ gold-prices-have-soared-expect-more-of-that-in-2021-51607035676 The Economist [2020]. “After the pandemic, will inflation return?” Editorial. Retrieved on January 2, 2020 from https://www.economist.com/leaders/2020/12/12/after-the-pandemic-will-inflation-return Torry, Harriett and Anthony DeBarros [2020]. “U.S. Recovery Will Cool Further Before Getting Vaccine Boost, WSJ Survey Shows.” Retrieved on January 1, 2021 from https://www.wsj.com/articles/u-s-recovery-will-cool-further-before-getting-vaccine-boost-wsj-survey-shows-11607612401 Trading Economics [2020]. Commodity-Gold [chart]. Retrieved on January 4, 2021 from https://tradingeconomics.com/commodity/gold United Nations Conference on Trade and Development [2020]. “COVID-19’s economic fallout will long outlive the health crisis, report warns.” Retrieved on December 31, 2020 from https://unctad.org/news/covid-19s-economic-fallout-will-long-outlive-health-crisis-report-warns Zhang, Sarah [2020]. The Coronavirus is Never Going Away.” The Atlantic. Retrieved on December 31, 2020 from https://www.theatlantic.com/health/archive/2020/08/coronavirus-will-never-go-away/614860/

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