Revaluation Rumblings: Does Gold’s Big Run-Up Mean Manipulation Is Failing?

Yesterday was an exciting day for silver, which surged another 2.5%, finally poking out above the key $34–$35 resistance zone we've been watching for months.

The $35 level is a "line in the sand" to confirm a true breakout and the beginning of the next phase in the bull market.

COMEX silver futures finally closed above that critical $34–$35 resistance zone yesterday on strong volume, marking a 13-year high.

This breakout is a major technical milestone and could be the trigger for the next powerful phase of the bull market. It’s a very bullish sign, but it’s important to note that COMEX silver futures must hold above the $35 level in order for the breakout to remain intact.

A drop back below that threshold would invalidate the move, though, so we will be watching this closely.

As for the weekly price action, gold is soaring to another all-time high and checks in at $3,086 an ounce, up another 1.7% for the week. And that means gold has now risen 12 of the last 13 weeks on a weekly basis.

Turning to silver, just like a week ago its advance is roughly twice of what gold’s has been. The white metal is up over a dollar or 3.5% to come in at $34.41 as of this Friday morning recording.

Meanwhile, Money Metals' leadership in the industry on behalf of all gold and silver investors took on a new dimension this week, with our company filing a class action lawsuit against the governor of Kentucky Andy Beshear. The liberal Democrat has been thumbing his nose at the gold and silver sales tax exemption Money Metals helped enact last year.

The class-action suit comes immediately on the heels of overwhelming votes by both the Kentucky House and Senate to override Gov. Beshear’s veto this week of House Bill 2, a measure which expanded last year’s new sales tax exemption for precious metals purchases.

HB 2, which became law yesterday, provides a right for full recovery of unlawfully collected taxes (plus interest), stiff penalties on state officials (acting in their official capacities and potentially, their personal capacities), and attorney’s fees for the Kentucky Department of Revenue’s flagrant violation of a sales tax exemption that had taken effect on August 1, 2024.

The backstory is fascinating, even as the situation has been maddening.

Early last year, the Kentucky legislature had passed House Bill 8 to remove the state’s 6% sales tax on purchases of gold and silver coins, bars, and rounds. Gov. Beshear attempted to exercise a line-item veto that the Constitution of the Commonwealth of Kentucky had only created for appropriations bills.

Rather than override the veto of HB 8 last year, however, the legislature deemed the veto invalid -- and the Revisor of Statutes codified the sales tax exemption in accordance with the state Attorney General Russell Coleman’s legal opinion.

Nevertheless, Governor Beshear and his Department of Revenue insisted that all Kentucky citizens must pay such taxes -- and all businesses that sell gold and silver must continue to collect and remit them or face prosecution.

Governor Beshear’s brazen and illegal actions have put online precious metals dealers like Money Metals in an untenable position, but we refuse to be the bagman in his illegal money grab -- so we sued on behalf of all investors and dealers.

We are proud to stand with our three brave co-plaintiffs to take on this scofflaw governor to protect the rights of tens of thousands of Kentucky savers and investors.

Gold and silver are money, and folks should not be taxed for saving gold and silver to protect themselves from inflation and currency debasement. Almost every other state in our nation agrees and has already removed sales taxes from constitutional money.

In addition to recovery of back taxes, interest, and attorney’s fees, the class-action suit seeks temporary and permanent injunctive relief preventing further collection of sales taxes on gold and silver and any enforcement actions taken by the Beshear administration against citizens of Kentucky or precious metals dealers like Money Metals.

Helping Money Metals' national fight for the rights and financial interests of gold and silver investors – and for the sound money cause as a whole – is an extra benefit of doing business with Money Metals, as opposed to any other dealer out there. And we really thank you for that.

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