Gold & Silver back on the Bullish track<br />Weekly Market Report 3/27/17

| March 27 2017

Links to recent informative articles on precious metals and rare coins:

2016 Silver jewelry sales results

Yellen surprises hedge funds who cut Gold bets before rally

This Week’s Headlines:

Gold
Russia and China continue to build their Gold Reserves
This Week’s Best Coin offer
Psychology of Gold Investors Pt 2: Bargain Buyers & Common Error
Silver
Recommended investment commitment and diversification

GOLD

Last week the Gold rally continued, with Gold up $18, closing at $1,248.50 per ounce. Throughout last week, Gold never closed above the key $1,250 resistance level; however, it did briefly trade above that level on three days. Gold was helped by the U.S. Equity markets’ decline, and a weaker U.S. Dollar. I look for Gold to move above $1,250 this week on its way higher. When Gold closes above the $1,250 resistance level, I believe that many of the professional traders will increase their long position.

Today: This morning in Asian and European markets Gold broke through the $1,250 barrier, reaching a high of $1,261 per ounce on short covering. In U.S. markets, Gold saw some light selling.

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Russia and China continue to build their Gold Reserves

In the face of strong U.S. and European sanctions, Russia still has a strong appetite for Gold. Moscow added 31 tons to its reserves in January and 9 tons in February, to bring them to 1654 tons. If such purchases continue, Russia could overtake China later this year as the fifth largest holder of Gold. Both China and Russia see Gold as crucial. Putin has previously lobbied for Gold to be included in the IMF’s basket of currencies that have special drawing rights. “Both nations are keen to replace the US dollar dominance of world trade – particularly with respect to oil and gas – depleted and see Gold as one of the tools for helping them achieve this objective,” says Lawrie Williams.

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This Week’s Best Coin offer

$20 Gold Liberty Head BU obverse Brilliant Uncirculated $20 Gold Liberty Heads were minted prior to 1908 and are a very popular coin for both investors and collectors. Brilliant Uncirculated (BU) $20 Gold Liberties have historically traded at a 40% premium over the Gold bullion price. However, due to the recent decline in Gold and a strong U.S. Dollar, I have been able to purchase a small quantity of nice original BU coins. I can offer these coins at only 7.25% over the spot Gold price. Being minted prior to 1933, these BU $20 coins offer excellent privacy benefits, too. For more information, please click on the following link: http://www.mintstategold.com/us-20-liberties-bu.html.

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Psychology of a Gold Investor Part 2:
Bargain Buyers & a Common Error

Last week, I explained the importance of support and resistance levels when making buying or selling decisions for Gold. This week I would like to explore the psychology of setting default levels if the price doesn’t hit your price level. The major thing to remember is that Gold is on a 16-year bull market, up 416% with bullish fundamentals. We have, and will continue to see, volatility in the price, which could be as much as a 10% range.

Scenario #1: The price buyers
It’s March 8, 2017, and Gold has been declining. It’s down $50 in two weeks, from $1,260 to $1,210 per ounce, and you are hoping to buy it at or below the $1,200 support level. Ok, so you have decided to set a buy price of $1,200 as that’s what you want to pay for gold, but what is your alternative price in case you are unsuccessful? Hopefully, you will fill your order. However, if the price turns around you’ll miss a major run higher, unless you have set your alternative price. In this case let’s recommend that you set an alternative high price at $1,220. At that price you have only risked $10, with the hope of saving $10 or more per ounce. This strategy is designed to prevent traders from making a very common mistake. That mistake is holding out for a price because they believe they can save a few dollars. However, in doing this they miss the opportunity altogether. I have clients that refused to set an alternative price and have been waiting for Gold to go back to $500 since 2005. Whether it is Silver, Gold, or Rarities, I see that mindset often; many price sensitive investors omit putting in an alternative price

Scenario #2: Selling at a targeted price
It’s February 2017, and Silver has moved from $17.45 to $18.45 per ounce, a full $1 in just 4 weeks. Since Silver is moving up so fast, you are looking to sell part of your holdings at $19 per ounce. Ok, so you have set a selling price, hoping to pick up an additional $0.55, but what is your alternative price in case you are unsuccessful? And, what if the price starts to decline? I would recommend you set your alternative price at $18.00. Why? It’s an important support level and any break below that level could easily see the price drop another $0.50 or more. Silver reached $16.83 on March 15.

Most precious metal buyers/sellers make their transactions at current market prices, and are long term oriented. So taking a profit, or adding to your precious metal holdings, is based on a funds needed or available strategy. This seems to be the overall best long-term strategy for Gold and Silver investors.

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SILVER

Last week, Silver continued its rally, reaching a high of $17.80 per ounce. Silver closed on Friday at $17.74, up $0.34 per ounce, and up $1.81 (11.34%) since the start of 2017. Silver is showing excellent consolidation above the $17.50 level and is on track to move above the key $18 per ounce level this week.

The Gold/Silver ratio has decreased to 70.35-to-1.

Today: Silver broke through the $18 per ounce resistance level in Asian and European markets this morning. Silver reached a high of $18.15 per ounce before seeing some light selling.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 30% 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.

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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.

Categories: Weekly Market Report