This Market Report provides you with an update on the precious metal markets, and this week I discuss the support and resistance levels for Gold and Silver prices after their recent decline.

GOLD

On Friday gold closed at $1,584 per ounce, down $61.20 (3.72%) for the week on the heaviest volume of trading I have seen in months. Last week was not a pleasant week for precious metal investors.  The question I was asked by investors last week was, “With outstanding supply/demand fundamentals for Gold, how could it break below the key $1,600 per ounce support level?” We believe that there is a major seller in the market. Speculation as to who it is ranges from Spanish and Greek Banks needing Euros and Dollars, to heavy investor liquidation of Gold to meet margin calls or stop loss orders from losses in the global equity, currency, and energy markets.

Gold has major support at the $1,525 per ounce level and that level has shown extraordinary demand twice in the past nine months.  If we see another $60 drop in Gold to $1,525 per ounce, it could clean out the small investors with margin calls and stop loss orders. This is called by professional commodity traders ‘cleaning out the weak hands’ and happens many times before a major up-move starts. However, a sustained rally back above $1,600 for a few days could end this short term selloff.

I want to be very careful not to paint the short term outlook for Gold too bearish since the Chinese economy is still growing at a rate of 9.3%, and the Chinese investors (and their government) are known for becoming aggressive buyers of Gold at bargain prices.  

There is a great article by Julian Phillips on global gold demand available at:

http://www.mintstategold.com/investor-education/dmand_factors_driving_gold/

GOLDMAN SACHS IS BULLISH ON GOLD

With the gold price trading at $1,560 per ounce, Goldman Sachs (a Major Wall Street Bank) stated today that its 6-month and 12-month forecast for the gold price is $1,840 per ounce and $1,940 per ounce, respectively, citing weak US growth and renewed Euro zone risks, coupled with resilient physical demand.

SILVER

An ugly week for the value of Silver, down $1.54 per ounce (5.07%) closing on Friday at $28.89.

After breaking down below $30 per ounce last Tuesday, Silver could not muster the demand or trading volume to recover. On Wednesday we saw the price drop below $29 per ounce, with the market low of $28.44 per ounce on Friday.

For the past eleven weeks of trading, Silver has only had two up weeks. It is definitely in a short term bear trend.  The question is why? The answer is that Silver is caught in an economic nightmare; a combination of deteriorating global growth outlook, weaker than forecast output from China & India, selling in the gold market, and a stronger U.S. Dollar. All of these factors are anti-inflationary and have caused Silver to break the very important $30 per ounce psychological support level last week.

What’s next? Well, hopefully Silver will find support at $28.44 per ounce (last week’s low). But if it breaks down and $28 doesn’t hold,  $27.24 has chart support from 2010, with $26.14 being the December 2011 market low when massive buying appeared.  As for the upside of the silver price, $30 per ounce is the nearest resistance level, followed by $33.28 per ounce, which is the eight week high. 

PLATINUM

Last week with Gold down $61 per ounce, we saw Platinum drop $65, closing the week at only $1,471 per ounce. Platinum’s discount to the price of Gold is currently at an unbelievable $112 per ounce. This provides you with an opportunity to purchase Platinum at a 7 ½% discount to Gold. A discount of this size rarely happens, so last week I increased the recommended investment diversification for Platinum to 15% of your precious metal commitment. 

The Canadian 1oz Platinum Maple Leaf is the most active Platinum trading vehicle, and because it’s our #1 selling Platinum bullion item, we can offer them at only 5 ¾% over spot.  For a current quote on this item please visit: http://www.mintstategold.com/platinum-1/bullion-coins-and-bars/platinum-canadian-maple-leafs.html

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 35%, Platinum & Palladium 15%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

REMEMBER THE BLOG

If you want to be updated on what is happening in the gold, silver, and rare coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

The Market Report provides you with an update on the precious metal markets. This week I discuss the results of an American Investor Gallup Poll and “Why is the new President of France bullish for Gold and Silver?”

GOLD

Another week of base building with gold apparently locked into a trading range of $1,630 to $1,670 per ounce.  It’s clear that the gold market is treading water, awaiting the bullish news that will stimulate the fundamental buyers to drive the price above $1,700 per ounce. Last week, Gold ended the week at $1,645.20 per ounce, down $19.60 per ounce with an active volume of trading on the up and down days. The short term professional floor traders were selling on rallies and buying on dips, ending the week neutral, with no open positions. The opinion from many professional traders is that the market direction is neutral, compared with last week when the majority was slightly bearish.

Gold trading during the past seven months has reminded me of the same things that happened in 2008/09. Let me explain.  On March 17, 2008 gold set an all-time high of $1,011, an increase of over 50% in price in just 6 months.  After breaking above the $1,000 per ounce mark, the price of Gold declined to a low of $712 in six months. During that six month period it was difficult for me to convince our clients that the uptrend was still intact, since CNBC analysts were saying that Gold was on its way back to $200 per ounce.   Well, gold rallied back up and traded between $895 and $980 for seven months, building a base, before breaking out above $1,000 again. Within three months of breaking above $1,000 for the second time, the gold price continued higher, reaching over $1,200 per ounce. 

Why do I think history is repeating itself? 

After reaching $1,920 per ounce on Sept 6, 2011, Gold has traded between $1,524 and $1,800 per ounce, building a similar base for the past seven months. With Gold currently at $1,645 per ounce, I believe that a price move to the higher end of Gold’s trading range should happen very soon.

Can 2 ½ Million Chinese be Wrong?

It was just reported that in 2011 China imported (through Hong Kong) 428 tons of Gold. The latest figures show that the rate of Gold accumulation in China is increasing.  More than 79 tons of Gold was acquired through the end of February, putting China on the path to acquire 479 tons in 2012. Much of this demand is coming from the Chinese Gold Bank accumulation programs.  At this rate, China will be the largest importer of Gold in the world, over taking India (whose government is protecting the rupee and has turned hostile towards Gold importation) even though India’s population is fighting this every step of the way.  

In the past two years, the ICBC Bank Gold Accumulation program in China has grown to 2 ½ million Chinese clients. At the current pace of growth, the bank should have over 5 million Gold accumulation clients by 2015. ICBC bank is currently holding over a billion dollars of Gold in their vaults. Gold Accumulation programs have not only been very successful in making Gold more accessible in cities, but also in more rural parts of China as well, making the owners of these accounts into long term investors.  India has had a similar program in place since 2009 that has been very successful. The India Post retail outlets, in association with Reliance Money and the World Gold Council, launched a program that allowed Indian citizens to purchase gold at India Post outlets in 9 regions of the country.  

April Gallup poll on Investments

According to a recent Gallup poll, Gold leads four other types of investments (when Americans were asked to pick the best long-term investment). The poll found that 28% of Americans view Gold as the best investment vehicle for the long-term, as compared to 20% who selected real estate. Paper assets, like stocks and savings accounts, were tied for third place with 19%, and bonds finished last with only 8%. The new findings were part of Gallup’s April update of its annual Economy and Personal Finance poll.

Why is the New French President bullish for Gold and silver prices?

The new French President, Francois Hollande (a socialist) has campaigned on a promise to promote government stimulus programs rather than focus on harsh austerity measures that Sarkozy had favored. Hollande has said that his first task as President will be to call for a renegotiation of the European budget-trimming treaty, spearheaded by Sarkozy and German Chancellor Angela Merkel. Hollande wants to see more government-funded stimulus programs instead of doing drastic cuts across the board.

SILVER

Silver managed to close above its long term support level of $30 per ounce all five days last week. Silver closed at $30.43 per ounce on Friday, down $0.91 for the week. CME trading volume increased every day that Silver tested the $30 level.  Last week much of our domestic economic news and the U.S. Labor Department’s April jobs report were negative, leading to more talk about QE3.

The Federal Reserve previously said that it would take deterioration in the labor market, with inflation staying in check, as a signal to consider launching a third round of so-called quantitative easing. Additional accommodative policy is seen as unequivocally bullish for Gold and Silver as increased liquidity tends to debase the dollar and create inflationary risks.

PLATINUM

Last week, with Gold down $19 per ounce we saw Platinum drop $39, closing the week at only $1,536 per ounce. Platinum’s discount to the price of Gold is currently at an unbelievable $109 per ounce. This provides you an opportunity to purchase Platinum at a 7% discount to Gold. A discount of this size rarely happens, so I have increased the recommended investment diversification for Platinum to 15% of your precious metal commitment.  The Canadian 1oz Platinum Maple Leaf is the most active platinum trading vehicle, and because it is our #1 selling Platinum bullion item we can offer them at only 5.75% over spot.  For a current quote on this item please visit: http://www.mintstategold.com/platinum-1/bullion-coins-and-bars/platinum-canadian-maple-leafs.html

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 35%, Platinum & Palladium 15%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

REMEMBER THE BLOG

If you want to be updated on what is happening in the gold, silver, and rare coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

This week's Market Report provides you with an update on the precious metal markets and I discuss “Why I am confident that the price of gold is going to set new all-time highs this year.”

GOLD

Gold ended last week up $22 per ounce, closing Friday afternoon at $1,664.80 on heavy volume. I believe that last week the price of Gold finally bottomed out.  On Wednesday, the bears aggressively sold off Gold after hearing no mention of any future quantitative easing in the FOMC policy statement. However, when Gold hit $1,625 per ounce the trading volume picked up substantially and the price started to rally sharply.  This is the fourth time that I have seen gold demand and trading volume pick up sizably when gold is in that same price area.  The gold market is telling me that “Gold doesn’t want to go down.”  The only question is, "when will it breakout above $1,700 per ounce and resume its move to new all-time highs?"

Why am I so confident that the price of Gold is going to set new all-time highs this year?

The smartest fiscal and economic experts are employed (as consultants and financial ministers) by many of the world’s largest sovereign countries. These experts are responsible for protecting the countries trillions of U.S. Dollars, Pesos, Euros, Yen, and Yuan, that are being held as part of their vast reserves. Until 2009, these experts were advising these governments to sell Gold and keep U.S. Dollars as the primary part of the countries reserves; now these experts have changed their tune. Over the past two years, many countries including the BRIC countries (Brazil, Russia, India, and China) are exchanging their U.S. Dollars and Euros for Gold.

Last week, the IMF released the latest Central Bank Gold holdings data, which showed a net increase of 439 metric tonnes in 2011 (a 50-year high). An additional 57 metric tonnes were purchased by 11 countries just during the month of March 2012.  Mexico and Russia showed the most notable 2012 reserve increases, with about 16 tonnes each in March. Central Asian nations also caught some attention since they were net purchasers.  The trend of Central Banks diversifying their holdings out of US Dollars and into Gold has been intact for several years now and should continue into the coming years.

SILVER

Last week, while Gold was up $22 per ounce, Silver was down $0.30 per ounce, closing the week at $31.34.  After breaking the long term $30 per ounce resistance level on Wednesday, Silver came roaring back on heavy volume, closing Wednesday at $30.35 per ounce on the highest volume of trading for the week. I am convinced that the risk/reward for Silver at its current price is extraordinary.  You risk $1.00 per ounce with the possible short term reward of $5 per ounce, with the current Silver/Gold ratio at 53 to 1, showing that Silver is a better value than Gold.

The Silver Institute has just reported that physical Silver investments grew by a sizable 67% in 2011 to 96.7 million ounces.  The demand in Western Europe and the United States set new records for American Silver Eagle Bullion Coins, but the strongest demand came from China, which accounted for 60% of the demand for Silver bullion coins in 2011. The Silver Institute has also reported that 2011 saw a notable growth of 53% in Comex Silver futures turnover, in terms of the annual average.

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

REMEMBER THE BLOG

If you want to be updated on what is happening in the Gold, Silver, and Rare Coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

This week's Market Report provides you with an update on the precious metal markets and the CSNS rare coin convention. And, the newest issue of CoinStats is now available for $20 Gold and U.S. Silver Dollars. CoinStats is an in-depth statistical analysis of popular rare coin series which allows investors to identify the best values in certified rare coins.

GOLD

It was an interesting five days in gold trading last week.  Although gold closed at $1642.00 per ounce, down $17.40 per ounce, the low to high closings for all five days of the week were within $10 per ounce.  This was the least amount of volatility we had seen in months, and I regard this low volatility as the quiet before the pending storm.  For the past month gold has been trading with support at $1,613 per ounce, with resistance at $1,696 per ounce.  Now, I believe that we should see the direction of the short term price of Gold very soon (especially if this coming week’s FOMC meeting stirs up the markets) and very dramatically if there are big news headlines.

Market analysts see the unexpected lowering of interest rates in India, caused by economic concerns, to be very bullish for Gold demand and prices. Analysts also project an 8% increase in gold demand in India in 2012.  These projections could increase based on demand seen for gold during the upcoming Akshaya Tritiya Festival on April 24th in India. In addition to this, China's gold jewelry market is expected to grow by 35% this year.

An interesting article in last Monday’s Wall Street Journal about gold gave some bullish comments such as: “Bullion bulls still see potential gains as the world works through its problems, including Europe’s debt woes and the Fed’s bloated balance sheet. Central banks also have become big net buyers of gold, with the official sector absorbing 455 metric tons last year, more than at any point since the mid-1960’s.”  “Gold could top $1,900 this year, although the pace of gains is expected to be slow.”

SILVER

Last week Silver showed more strength than Gold, up $0.26 per ounce for the last five trading days, closing the week at $31.65 per ounce. Silver also showed light volatility, as the price range for the daily closing prices was only $0.40 per ounce, ranging from $31.37 to $31.77 per ounce.  This provides additional confirmation that we are seeing the quiet before the storm, and a major breakout is on the way.

An April 19, 2012 press release from the Silver Institute provided the following information: Strong global silver investment in 2011 paved the way to a record annual average silver price of $35.12 per ounce in a year marked by steep price volatility. 2011 showed a 3% decrease in silver supplies of 34 million ounces to 1,040 million ounces, while an increase in coin and metal investor demand of 18.8 million ounces.

For the complete report from The Silver Institute visit:
http://www.silverinstitute.org/site/2012/04/19/silvers-2011-annual-average-price-posts-all-time-record-at-35-12/

RARE COIN UPDATE

I just returned from the Central States Numismatic Society (CSNS) coin show. The CSNS numismatic coin convention is one of the top five shows of the year, with thousands of dealers, collectors, and investors in attendance. This year the CSNS decided to move the show from Rosemont, IL (the area around O’Hare airport) to the Renaissance Schaumburg Hotel and Convention Center in Schaumburg, IL.  Personally, I feel that this was a mistake; although the facilities were very nice, public attendance was down substantially.    

Even with smaller public attendance this convention continued to show that the rare coin market is roaring back. Dealer demand for new high quality material has never been stronger, with most dealers reporting low inventory levels.  Prices for low population MS65 and above PCGS/NGC certified U.S. rare coins at the public auction were 10-20% higher on similar rarities that were auctioned 3-6 months ago. I focused my attention on purchasing CoinStats recommended U.S. Gold and Silver coins with limited success. A combination of lack of quality rarities on the bourse floor and many aggressive buyers made it a seller’s market, and they priced their limited quantities of rarities accordingly. 

The new April 2012 CoinStats is now available

My numismatic CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series which allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively for our clients. The April 2012 CoinStats update is now available for $20 Gold Saint Gaudens, $20 Gold Liberties, and the Morgan & Peace Silver Dollar series.

The CoinStats Report provides a list of my recommended certified US gold and silver coins which are listed on the best value page.  These are not the overly hyped modern issue bullion coins or low grade circulated coins, they are PCGS/NGC Certified MS63 or higher gold and silver U.S. rare coins, dated prior to 1936, that have a proven track record of appreciation.

For the latest CoinStats analysis, just put CoinStats in the subject line and email me which series you would like to see.

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

REMEMBER THE BLOG

If you want to be updated on what is happening in the gold, silver, and rare coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

This week's Market Report provides you with an update on the precious metal markets and announces that the newest issue of CoinStats is now available. CoinStats is an in-depth statistical analysis of U.S.$20 Gold and Silver Dollar rare coins, which allows investors to identify the best values in certified rare coins.

GOLD

Last week was just another volatile week in global precious metal trading, with a $50 per ounce High /Low trading range. Gold ended the week up $30 per ounce, closing Friday at $1,660.20 per ounce, up 5.83% since the beginning of the year.  Gold is still at the low end of its nine month trading range ($1,535 to $1,920) and represents excellent value. I expect a minimum of a 20% return in 2012, the same average appreciation for the past 11 years. 

Physical Gold Demand in Asia continues to increase.

Physical demand for gold in India is expected to pick up again now that Indian jewelry shops have ended a strike. “A majority of India’s jewelers closed their shops for roughly three weeks to protest a doubling of the import tax on gold from 2% to 4%, and the introduction of an excise tax of 1% on unbranded gold jewelry. The majority of India’s jewelry industry is comprised of small shops and an excise tax is viewed as more onerous for smaller jewelry stores to comply with, according to Indian merchants,” said Jim Steel, an analyst with HSBC.

India, along with China, is one of the world’s two largest consumers of gold. The end of the strike comes at a key time, with the approach of India’s gift-giving Akshaya Tritiya festival on April 24. Buying valuables such as gold jewelry on this day, and giving them as gifts, is considered to bring extensive religious merit, luck, and success.

In February, mainland China bought 39,668 kilograms of gold (39.668 metric tons), up from 32,948 kilograms in January (a 20% increase), according to export data from the Census and Statistics Department of the Hong Kong government.

Standard Banks recent forecast

On Tuesday, Standard Bank forecast gold prices to average $1,790 an ounce in 2012."Over the short term, we concur with the caution evident in the current futures market and ETF positioning," the bank said in a note to clients. However, the bank also said it expects the prices to move higher, most likely in the second half of 2012.

Morgan Stanley forecasts

In the face of the Federal Reserve’s recent statement, which drove the gold prices down to $1,612 per ounce, Morgan Stanley forecasts that the gold prices will climb to $2,175/oz by 2013 with prices depending on 4 bullish factors: 1) the decline in producer hedging 2) the decline of developed market central bank sales 3) the inability of gold mines to increase gold supplies materially and 4) the long term growth in physical investment demand.

SILVER

Silver continues to show excellent support at $31.00 per ounce, closing last Friday at $31.39 per ounce, down $0.34.  With the exception of Thursday April 12th, when silver rallied $1 per ounce and reached $32.58 per ounce, Silver has closed between $31.39 to $31.67 per ounce.

Last week the Silver and Platinum price did not take direction from the Gold market, closing lower on the week in the face of a 2% increase in gold.

PLATINUM

Last week Platinum was down $20, closing the week at only $1,587.60 per ounce, at a $72.30 discount to the gold price. This provides you an opportunity to purchase Platinum at a discount to Gold. Great timing, as the new 2012 1oz Platinum Maple Leafs were just released. The Canadian 1oz Platinum Maple Leaf is the most active platinum trading vehicle. For a current quote on this item please visit: http://www.mintstategold.com/platinum-1/bullion-coins-and-bars/platinum-canadian-maple-leafs.html

The new April 2012 CoinStats is now available

My numismatic CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series which allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively for our clients. The April 2012 CoinStats update is now available for $20 Gold Saint Gaudens, $20 Gold Liberties, and the Morgan & Peace Silver Dollar series.

The CoinStats Report provides a list of my recommended certified US gold and silver coins which are listed on the best value page.  These are not the overly hyped modern issue bullion coins or low grade circulated coins, they are PCGS/NGC Certified MS63 or higher gold and silver U.S. rare coins, dated prior to 1936, that have a proven track record of appreciation.

For the latest CoinStats analysis, just put CoinStats in the subject line and email me with which series you would like to see.

RARE COIN UPDATE

This week I am attending the Central States Numismatic Society, in Schaumburg, IL. This is a major coin convention attended by thousands of dealers, investors, and collectors. I plan to focus my attention on purchasing graded MS63 and higher U.S. $20 Gold Liberties & Saints, and Morgan & Peace Silver Dollars. Supplies have been thin lately, primarily because most dealers’ inventory levels are low now, and they are aggressive buyers. Investment quality high end gold and silver rarities are always on my want list. 

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

REMEMBER THE BLOG

If you want to be updated on what is happening in the gold, silver, and rare coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

This week's Market Report provides you with an update on the precious metal markets and the reasons why the Federal Reserve is not talking about another run of stimulus at this point in time.

GOLD

The volatility doesn’t want to go away. Last week Gold had a $72 per ounce trading range, from a low of $1,613 to a high of $1,685. The recent economic and monetary news is helping the bulls and bears make their case for the short price of Gold. Gold’s nine month trading range has been from $1,535 to $1,920 and any break below or above those prices would be a major move. However, the 2012 short term Gold trading range has been $1,566 to $1,792, and any break below or above those prices would provide an excellent indicator of the short term direction of the market. For right now, Gold is trading at the low end of the trading range, and I would recommend buying at current levels, unless gold breaks below the $1,566 per ounce support level. 

Late Tuesday, April 3rd, the minutes of the Federal Reserve’s March meeting were released. It was clear from the minutes that it is highly unlikely that we will see another round of monetary stimulus (Quantitative Easing, QE3) from the U.S. Federal Reserve any time soon. On Wednesday, April 4th, the world’s stock markets, energy, and precious metals overreacted on the downside to this news release, which normally happens; the drop came quickly, while the bond market and U.S. Dollar rallied.  

What does this mean? It means that the Federal Reserve basically said that if the U.S. economy continues to improve, QE3 will not be needed, however, should the United States economic indicators starts to look negative, QE3 will continue to be an option.

Last Wednesday, after the Federal Reserve’s minutes were released showing that it was unlikely that a new round of stimulus (QE3) will be coming soon, both the stock market and gold sold off dramatically. This morning, April 9th, the market reacted to Friday’s disappointing employment report, and again the stock market reacted negatively, while Gold is up $14.00 per ounce. It is clear that a QE3 will be bullish for gold. However, what is bullish for the stock market, if it reacts negatively to both good and bad economic reports?

Between the Federal Reserve’s past stimulus programs and the massive U.S. Government budget deficits, there have been trillions of new dollars added to the balance sheets. The handwriting of future inflation is on the wall, as I stated in my March 26th Weekly Market Report. The velocity of the money supply going through our financial system (banks making new commercial and residential loans) will increase dramatically by early next year, starting the inflation cycle. At that point, Gold and Silver at current prices will look like the bargains of the century. Take advantage of this opportunity; add some Gold, Silver and Platinum to your holdings, NOW.

Morgan Stanley forecasts

In the face of the Federal Reserve’s recent statement, which drove the gold prices down to $1,612 per ounce, Morgan Stanley forecasts that the gold prices will climb to $2,175/oz by 2013, with prices depending on 4 bullish factors:  1) the decline in producer hedging 2) the decline of developed market central bank sales 3) the inability of gold mines to increase gold supplies materially 4) the long term growth in physical investment demand.

Today, the gold market has rallied on Asian demand, trading up $14.00 per ounce to $1,644.00.  After Indian Jewelers brought their 3-week long strike to an end on Saturday the Gold market rallied. India’s jewelers were assured that the government would consider scrapping a budget proposal to levy excise duty on unbranded gold & silver jewelry.

SILVER

Last week Silver had a $2.27 high/low price range. At the end of the week we only saw a $0.75 price correction.  Silver showed extraordinary demand at the $31 per ounce support level.  Since January 20, 2012, Silver has managed to stay above $31 per ounce at the close of each day, a key support level.  Last Wednesday, Silver briefly touched $30.98 per ounce during trading before the demand increased sizably to drive the market up, and closed the day at $31.04, ending the week at $31.73 per ounce. It appears that the risk/reward for investing in silver, if under $33 per ounce, is excellent. You are risking $2.00 per ounce, with an upside from the current level of $8 (to $40 per ounce) in the short term and higher in the long term.

PLATINUM

While gold was down $41 per ounce last week, Platinum was down $34, closing the week at only $1,607.60 per ounce; a $22.50 discount to the gold price. This provides you an opportunity to purchase Platinum at a discount to Gold. Great timing, as the new 2012 1oz Platinum Maple Leaf was just released. The Canadian 1oz Platinum Maple Leaf is the most active platinum trading vehicle. For a current quote on this item please visit: http://www.mintstategold.com/platinum-1/bullion-coins-and-bars/platinum-canadian-maple-leafs.html

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

REMEMBER THE BLOG

If you want to be updated on what is happening in the gold, silver, and rare coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

This week's Market Report provides you with an update on the precious metal markets, and the reasons why now is the right time to add Platinum to your precious metal and numismatic holdings, along with a two-day only Platinum special offer.

GOLD

The volatility in the gold market continues. Last week gold tested the $1,700 resistance level, reaching $1,696.90 per ounce on Tuesday morning before seeing floor professional’s taking short term profits.  For the second week in a row the gold price closed higher than the previous week. Last Friday gold closed at $1,671.90, up $9.50 per ounce for the week.  During the week gold never closed below $1,650, and the lower the market traded, the more active gold trading became.  Again this past week gold continues to build the base for its next attempt to break through the $1,700 per ounce resistance level, on its way to set new all-time highs.

As we enter a new month, we are back on the bullish track with gold up $12 an ounce today. Let’s look back on what has happened since the beginning of the year. With all the volatility in the markets, gold managed to increase $106.10 per ounce (6.78%) in the first three months of the year. At the same rate of increase for the balance of the year, gold would reach $1,990 per ounce by Dec. 31, 2012; $10 under my year-end price target.

What does the Public think of Gold as an investment?

In a recent public survey of best investments, Gold received the highest rating of 37% of American investors who believe that Gold is the best investment. What does this mean? 37% is very bullish for Gold; 37% of the public believes that the value of their savings denominated in Dollars will not keep up with future inflation.  However, when that survey percentage number reaches 51%, we will see Gold well over $2,000 per ounce. At 51% I would start to be concerned, because that brings too many buyers into the market. At that point, it may be a good time to think about selling your Gold, because when surveys show that the majority of the public is buying or selling, it would be the time to go the opposite way.  

Mixed Opinion on the direction of the Gold price from Leading Financial Institutions

The price of gold, one of the most eagerly watched indicators of market confidence, is currently “too low” relative to real interest rates, according to commodities analysts at Goldman Sachs. The analysts forecast that gold will rise to $1,785 per ounce over the next 3 months, $1,840 over the next 6 months, and $1,940 over the next year.

Swiss bank, UBS, cut its 2012 full-year forecast for gold last Thursday, citing a continued improvement in the global economic outlook, particularly in the U.S. UBS reduced its 2012 gold forecast by 18%, to $1,680 a troy ounce. The bank had previously forecast the metal to average $2,050/oz this year. "A continuing U.S. recovery, material erosion in Fed quantitative easing expectations, rising Treasury yields, a stronger dollar, and questions surrounding the durability of the Fed's low-until-2014 rate pledge, all combine to act as the prime culprits that cause us to pare back, for now, our previously aggressive call," said UBS analyst Edel Tully.

SILVER

Last week Silver took its price direction from the Gold market, reacting to the same global news events that affected Gold’s price; i.e., Eurozone finance ministers raising the two rescue funds (EFSF/ESM) to 700 billion Euros, with an additional 240 billion Euros that can be used in emergency situations like Spain and Portugal, through mid-2013.

During the week Silver had a high of $32.84, with a low of $31.63 per ounce, closing the week at $32.48, up $0.21 from last week.  Silver under $32.00 per ounce finds bargain buyers on a global basis. I believe we have seen the bottom for silver, as it refused to breakdown below $31 for the past month, and consistently rallied back to above $32.00 per ounce. We are now in the month of April. Remember that last year silver rallied sharply from $37.73 per ounce on April 1^st to $49.84 per ounce on April 25^th.

The U.S. Mint reported on Friday that demand for 1oz Silver Eagles remains strong, with sales reaching 10,139,000 by the end of the first quarter (March 30, 2012).

PLATINUM

While Gold was up $9.50 per ounce last week, Platinum was up $16.20, closing the week at only $1,644.10 per ounce, and at a $27.80 discount to the Gold price. This provides you an opportunity to purchase Platinum at a discount to Gold. Great timing, as the new 2012 1oz Platinum Maple Leafs were just released last week. We are offering a special discount on Canadian Platinum 1oz .999 Maple Leafs. Just call us at 888-454-0444, or visit our website www.Mintstategold.com, and use coupon code PLMAPLE2012 to receive a $20 per coin discount. This discount is only available until Tuesday, April 3, 2012. There is a minimum of three coins per order, and payment by Check or Bank Wire Only. If Platinum doesn’t represent 10% of your current precious metal diversification, please consider adding it now.

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

REMEMBER THE BLOG

If you want to be updated on what is happening in the gold, silver, and rare coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

This week's Market Report provides you with an update on the precious metal markets and the reasons why the Baltimore Coin Expo confirmed my feeling that the rare coin market is getting ready to make a sizeable move higher.

The Question

Since November of 2008, starting with the TARP financial institution bail out, plus four annual Trillion dollar U.S. Budget deficits, the U.S. has printed over 6 Trillion paper dollars. This, combined with trillions of British Pounds, Japanese Yen, and the ECU Euro being given to the sovereign countries to help the world’s problem banks. So, other than gasoline and some food products WHY ARE WE NOT SEEING SERIOUS INFLATION?

The Answer:

Government stimulus programs for the private sectors aren’t enough to increase the velocity of liquidity in the large and small businesses to stimulate the economy and increase hiring. Let me explain. Since 2008, the U.S. has spent trillions of the dollars mentioned above just to keep our financial system running and to prepare for any future financial turmoil, not to mention the trillions of Euros spent to keep the European banks out of trouble due to them being extremely over-leveraged as well.  Since their loan to reserve ratios were at all-time highs, these banks have used the funds provided to build up their reserves, increase liquidity, and write off many outstanding bad loans.  For the most part, banks are not aggressively making new business loans.  As the economy recovers and more and more companies become credit worthy, the banks will start lending; that’s when the velocity of trillions of dollars, pounds, yen, and euro will give us serious inflation. If the cost of Oil doesn’t push Europe into a severe recession, I would expect to see official government inflation figures start increasing early next year. By the time serious inflation is being reported by the world’s governments, Gold will already be over $2,000 per ounce and on its way to $3,000, while the investment quality coin market will be up 50% or more from current levels.

GOLD

The gold price just doesn’t want to go down. Last week there was a bunch of global economic news released that should have caused gold to hit the $1,600 per ounce support level. But every time the gold price reached the high $1,630’s or low $1,640’s, we saw sovereign country type buying appear. Considering that there were no surprises in last week’s news, it was surprising to see gold up $20 per ounce on Friday.  Gold closed at $1,662.40 per ounce last Friday, up $6.60 for the week, and up 6.17% since the beginning of the year. I believe gold will test the resistance level of $1,700 per ounce this coming week.

Since early August of 2011 gold has traded from $1,535 on the low to $1.920 per ounce on the high, an extraordinary 25% trading range within eight months, understandable considering the increasing volatility within the precious metal group and the world’s unstable economic developments. However, I have seen a similar event happen before; gold broke above the $1,000 threshold in 2009.  From December of 2008 to September of 2009, a nine month period, gold traded in a $749 to $940 price range (25%) before breaking out above $1,000 per ounce on Sept 8, 2009. I have said numerous times before, gold is building a base for its move above $2,000 by year end. The world’s central bank printing presses are running overtime, and physical demand is increasing daily. 

The London Financial Times reported
Deutsche Bank plans to open a new precious metals vault in London next year, seeking to cash in on booming investor demand for physical gold and silver. In London, center of the global bullion market, vault space is running low even as the growth in exchange-traded funds backed by physical precious metals has led to a steep rise in demand for vaults. A growing number of banks and logistics companies are rushing to break into the precious metal storage market.

SILVER

Silver also had a volatile week of trading and prices. The price ranged from $31.09 on the low to $33.09 per ounce on the high, and closed above the important $32 support level in three of the five trading days. Silver closed Friday at $32.27 per ounce, down $0.33 for the week, but still up $4.39 (15.75%) since the beginning of the year.

Silver Institute Announces Results of Annual Jeweler Retail Survey
77% of jewelry retailers surveyed said that their silver jewelry sales increased in 2011; about one-third of those jewelers had reported increased sales of over 25%. Read the full survey at: http://www.silverinstitute.org/site/2012/03/20/silver-institute-announces-results-of-annual-jeweler-retail-survey/
 

PLATINUM

While gold was up $6.60 per ounce last week, Platinum was down $47.60, closing the week at only $1,627.90 per ounce. This correction provides you a second chance to purchase Platinum at a discount to Gold. Great timing, as the new 2012 1oz Platinum Maple Leafs are being released this week. If Platinum doesn’t represent 10% of your current precious metal diversification, please consider adding it now.

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

RARE COIN REPORT

I just returned from the Baltimore Expo rare coin convention late Saturday night.  Any question about the health of the rare coin market is definitely answered.  Prices at the public auction were setting record highs and most of the dealers on the convention floor were buyers, not sellers, of investment quality gold and silver coins.  After the show started and dealers began learning of the auction results, it was very difficult to purchase high end gold and silver coins at a competitive price.  During the three days at the show I probably looked at over 200 coins, and either the price was substantially over current market prices, or the quality wasn’t up to my PQ standards.  Many of the floor dealers were actively bidding for fresh material from the public. Luckily I purchased two gold and silver coin collections Thursday morning, because I only added 8 more coins in the following three days.

REMEMBER THE BLOG

If you want to be updated on what is happening in the gold, silver, and rare coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

This week's Market Report provides you with an update on the precious metal markets and the reasons why I feel the rare coin market is getting ready to make a sizeable move higher.

GOLD

Another week of volatility in the world’s gold and silver commodity markets. Gold opened the week at $1,715 per ounce, and closed the week at $1,655.80, dropping $55.70 for the week. Gold is still up $90 per ounce (5.75%) since the beginning of the year, and still on track to reach over $2,000 this year.

Last Wednesday Gold reacted negatively to Federal Reserve Chairman Bernanke’s policy statement to Congress sharing his positive views of the U.S. economy. The Fed’s statement buried any hopes of more monetary easing (QE) in the short term and took away one of the main pillars for short term optimism for gold and silver prices. Remember, this decline in the Gold and Silver price is just temporary, the fundamental reasons for owning precious metals are still in place.  Gold traded down to $1,634 per ounce on heavy trading before we saw sizeable buying come into the market, closing on Wednesday at  $1,642.90, down $51.40 per ounce.

The International Monetary Fund on Thursday approved a 28 billion euro ($36.7 billion) bailout for Greece, part of a broader international rescue package for the debt-strapped euro zone member. Now, Spain and Portugal are waiting in line for an ECB and IMF handout. In other words more paper money is going to be printed.

March 14, 2011 marked the 112th anniversary of  U.S. gold on the Gold Standard, which was ended by President Nixon in 1971. Please read the following article to better understand what the original purpose for a U.S. Gold Standard was.

http://www.mintstategold.com/investor-education/1900_us_adopts_gold_standard/

SILVER

Last week Silver declined $1.60 per ounce in active trading. Silver closed the week at $32.60 per ounce after reaching a low of $31.62 per ounce because of Wednesday’s Fed announcement. Silver refused to stay below $32 for very long. Bargain buyers from around the globe, particularly in China and India, were very aggressive buyers around $32 per ounce.  At these levels the Silver/Gold ratio is 50.79 to 1

PLATINUM

This week’s Platinum price correction was minor, only $9.40 per ounce, closing at $1,675.50. This puts Platinum at a $19.70 per ounce premium to the gold price.  Yes, since I recommended buying Platinum back on January 6^th, when it was trading at a $206 discount to gold, it has rallied $275.80 (19.7%) . For many of my clients who acted on that recommendation, I would keep 10% of your precious metal investment in Platinum. I would then trade the balance of your Platinum investment into investment quality gold and silver rare coins, as they offer the best value at this point. See Rare Coin Update below.

Rare Coin Update

All the signs are saying that the Investment Quality Gold & Silver Rare Coin Market has started its long awaited upward move. In October of 2008 our country suffered the biggest financial crisis since the 1929 stock market crash, which resulted in the Great Depression of the 1930’s.

With concerns over financial liquidity, skyrocketing unemployment, and the residential real estate defaults, the U.S. rare coin market has had major setbacks.  Gold has increased 100% since October of 2008, and while high end rarities ($50,000 and above) are higher; Investment quality rare coins ($2,000 to $49,000) have been unchanged to lower; and Collector coins ($10 to $1,999) have dropped substantially.

After 3 1/2 years, the longest in my 50 year numismatic history, all the major signs are showing that the quality rare coin market is starting its long awaiting rally. Let me explain why we could see a 30% move higher by year end.

1)    There are two major rare coin trading networks, CoinNet and Certified Coin

Exchange (CCE). CoinNet caters primarily to small dealers and offers an open broadcast system by categories, allowing dealers to post buying and selling messages. CCE offers over 650 of the World’s largest rare coin dealers the ability to make open broadcasts, as well as post bids or asks, for PCGS or NGC certified U.S. coins. Dealers can use the U.S. Trading boards to bid or ask on generic classes of gold and silver coins, as well as specific coins by grade, date/mint mark, type, and grading service.

I continually monitor the quantity of bid and ask prices as an indicator of the health of the rare coin market and to keep me abreast of prices and availability. In the past two months I have noticed a sizeable increase in bidding, and a lack of ask prices on many gold and silver rare coins. As of Friday, March 16, 2012, there are ask prices for 17,417 rare coins (worth $9 million dollars) on CCE, while the bids have risen to over 189,000 for investment quality gold and silver rare coins (worth $261 million.) That bid/ask value ratio is 29 times. The bid/ask value ratio is one of my primary rare coin market indicators, and I have never seen it that high.

2)    Most dealers, including myself, have record low inventories of Investment

Quality certified rare coins. At the last major Coin Show in Long Beach (Feb 1 - 3, 2012), I was looking to buy PQ quality CoinStats recommended Gold and Silver coins, as well as rare coins on clients want lists. On average during 2011, I was able to buy around $300,000 to $500,000 per show, based on my time commitments and the length of the show.  At the FUN Convention in Florida in January and the Long Beach Expo last month, I spent less than $50,000 and I worked for 3-4 days looking, as well as attending scheduled meetings with collectors and dealers to make  offers on collections.

3)    In the past three months I have been contacted by many rare coin collectors and

investors who have been inactive since 2008. In speaking with them, I have learned that they are more confident about their businesses and the economy, and now have money available to buy rare coins.  While healthy U.S. economic news may be short term negative for gold/silver bullion, it is positive for the rare coin market.  With the recent rally in the stock market, low interest rates, and gold and silver doubling in price in the past 3 ½ years, the rarity premium is at a record low, so buyers are coming back to rare coins for long term capital appreciation.

What I am recommending?

The best values for long term appreciation can be found in U.S. Gold Type Coins and Morgan/Peace Silver Dollars. PCGS/NGC certified Investment quality rarities such as $20 Gold Saint Gaudens and Liberties (minted from 1894 to 1928) are the most popular with collectors and investors. These $20 Gold coins are trading at about the same prices as they were in 2008, and gold has doubled since then. I recommend, based on your budget, adding the highest grades of CoinStats recommended dates/mints you can afford. Gem MS65 to MS68 are true rarities, and historically increase at a higher pace than the lower grades.

The most popular U.S. Silver coins are the U.S. Morgan and Peace Silver Dollars (minted from 1878 to 1935.) Again, I would recommend non-generic dates/mint PCGS/NGC certified MS65 or higher for the best long term appreciation. Investors should use CoinStats in selecting the scarcer investment dates.

Considering the low supplies, increasing demand from dealers, collectors and investors, and the improving domestic economy, I am getting very aggressive with my buying prices and I would recommend you do the same. At the upcoming Whitman Baltimore Coin Expo and the Central States Numismatic show three weeks later in Chicago, I will be bringing a heavy checkbook.

If you haven’t already emailed me your current want list, please do so immediately as I leave on Wednesday morning.

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

REMEMBER THE BLOG

If you want to be updated on what is happening in the gold, silver, and rare coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

This week's Market Report provides you an update on the precious metal markets and the reason you need to email me your numismatic want list immediately.

GOLD

The big question last week was could gold hold the psychological $1,700 resistance level. The concern being that if gold broke $1,700, it could cause a dramatic drop towards $1,600 level before any strong demand would appear.  All five days last week gold traded below $1,700 per ounce, reaching a low of $1,663 on Tuesday, before heavy buying appeared. Gold continued to rally and by Friday, closed back above the $1,700 resistance level at $1,711.50 per ounce. After a $48 high/low price range, gold actually closed up $1.70 for the week.

With the Greek Debt issue in our rear view mirror, I would expect to see Gold stay around the $1,685 to $1,715 price range for a while, awaiting short term direction from Fed Chairman Bernanke’s speech on Wednesday after the FOMC meeting, and Thursday’s Fed announcement on the results of the bank stress test. Later this month I believe we will see Gold resuming its rally, and go over the $2,000 level by the summer.  The procedure by which the European Central Bank (ECB) and the IMF settled this issue is now the prototype for Italy, Spain, and Portugal, as their debt problems get critical.

Gold was up $12 last Wednesday, with many gold mining stocks lower on a major negative news announcement from Indonesia. Indonesia announced a new rule on the mining ministry's website, Southeast Asia's largest economy, which would require foreign firms to sell down stakes in mines and increase domestic ownership to at least 51% by the 10th year of production. This is another nail in the coffin for gold equity investors versus owning physical gold. It comes on the back of an increase in the usual negatives for owning gold stocks: strikes, labor problems, environmental holdups, and government nationalization. 

The Industrial and Commercial Bank of China Ltd, one of the world's largest lenders, said in a statement that its gold leasing business had reached 62.8 tonnes of physical metal in 2011. The bank, which started gold leasing in January of last year, has more than 100 clients, including jewelers, industrial users, refiners, and miners, who borrow gold for up to a year. The bank charges a fee for the leased gold, which is returned to them within an agreed time period. 

Why do jewelers and industrial users lease Gold at a very low bank interest rate?  Because it can take up to a month or more to design and manufacture a line of jewelry, and with the current volatility in the gold market, there is a risk that the market could drop. So, they lease the gold until the product is sold to the retailer, and at that point they end the lease, and purchase the gold.

SILVER

Last week the volatility in the Silver market ranged from a low of $32.49 per ounce to a high of $34.95. On the downside, it broke through the $34 and $33 support lines before sizeable demand hit the market at $32.49 per ounce.  I think that this was the “weak hands” clean out, which I had expected before the move to $40 per ounce.  Silver closed the week at $34.12 per ounce, down $0.31 on the week, and still up 22.71% since the start of 2012.

In a news release issued last Thursday, the Silver Institute said silver-based ETFs now account for 586 million ounces of silver, up from 576 million ounces at the end of 2011. "Demand for physical silver bars is also strong. According to several precious metals dealers, silver bar sales continue to be brisk," said the institute. Investor demand on the COMEX has also been strong this year. As of February 28, net long silver positions had increased by more than two-fold from year-end 2011. Total net long positions on February 28 were at their highest level since Sept. 13, 2011, said the Silver Institute.

When Federal Reserve Chairman Ben Bernanke was on Capitol Hill last week for a congressional hearing, Congressman Ron Paul held up an ounce of silver and told Bernanke that back in 2006 it would have bought over four gallons of gasoline. “Today, it’ll buy almost eleven gallons of gasoline,” he said, adding, “that’s preservation of value.” 

PLATINUM

Platinum took its lead from Gold for most of last week, closing at $1,684 per ounce. Platinum is trading at a $26 discount to the spot gold price.  Since the beginning of the year, Platinum is up $284 per ounce, a 20% increase (double the Gold 2012 increase).  With the increased demand for Platinum, the Royal Canadian Mint has decided to start manufacturing 1 oz .999 Platinum Maple Leafs again.  We have secured a quantity from the distributor so we will have them. We can sell them right now and you can lock in an attractive price, and we expect delivery by the end of March. If you have already picked up your 10% investment diversification, I would recommend buying while Platinum is still trading at a discount to gold.

Rare Coin Update

Within the next five weeks I will be attending two Major Rare Coin conventions. At these Coin Shows there will be tens of thousands of dealers, collectors, and investors, and major numismatic auctions. The first Show will be held in Baltimore between March 22nd to March 24th, and the second Show is the Central States Numismatic show between April 18th to 21st.

Since I will be examining hundreds of investment quality rare coins, I am asking my clients to update their numismatic want list. Please email me your current want list by March 16th. Please provide grading service desired, grade or price range, and any other criteria to barry@stuppler.com.

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes long term investment quality rare coins and short term bullion products

REMEMBER THE BLOG

If you want to be updated on what is happening in the gold, silver, and rare coin markets any weekday, our company offers a daily blog Monday to Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.