Gold And Silver Prices Reached 2019 Highs In January

Current Rare Coin Listings Updated

Current listings for Morgan Dollars
https://www.mintstategold.com/silver/us-mint/morgan-silver-dollar.html

Current listings for Peace Dollars
https://www.mintstategold.com/silver/us-mint/peace-silver-dollar.html

Current listings for $20 Gold Saints
https://www.mintstategold.com/gold/us-mint-1/saint-gaudens.html

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

U.S. Mint Silver Eagle Sales Jump In January

No End In Sight To World's Rising Debt

Silver Breaking Long-Term Bear Trend

Goldman Says Gold Price Will Hit 6-Year High In 2019

U.S. Dollar Dives After Federal Reserve Moves To The Sidelines

Silver Shortage Promises To Boost Price In 2019

This Week’s Headlines:

Gold
Silver
Recommended Investment Commitment And Diversification

GOLD

Gold started 2019 by having a great January, increasing its value by $45 per ounce. Gold ended January at $1,322. Right now, I’m looking for Gold to briefly trade between $1,300 to $1,320 per ounce. I continue to believe that 2019 will be a breakout year for Gold, reaching $1,480 by year-end, and on its way to a new high above $1,920 by 2021. I base this statement on…

10 Major Reasons Why The Gold Price Will Reach Record Levels:

1) The Federal Reserve policy

Last week’s statements by Fed Chairman Powell were the primary cause of Gold’s move above the $1,320 per ounce level and will contribute to Gold reaching my 2019 prediction of $1,480 per ounce. He said and indicated:

A) A promise to be patient with any new interest rate increases. Last year Powell stated there would be a minimum of 2 increases in 2019, yet analysts now believe the Federal Reserve will not increase interest rates in 2019.

B) For the second year in a row, Chairman Powell indicated that the Fed would be prepared to add $1 trillion to fund the national debt.

C) Statements made that Central Bankers lack the weapons to fight the next big recession.

2) Brexit Negotiations

Any settlement should be helpful to the value of the Pound Sterling and the Euro, driving the Dollar lower, which would be helpful for the price of Gold.

3) Global Physical Demand

In addition to record Central Bank Gold demand in 2019, investors in countries like India, Russia, Canada, Japan and 68 other countries, when measuring the Gold value in local currencies, are aggressively buying Gold at an all-time record high.

4) Debt

The U.S. national debt will soon reach 22 Trillion Dollars, but that is a drop in the bucket compared to Euro countries and Japan. It is estimated by the Institute of International Finance that Global debt currently is over 250 Trillion Dollars. It is highly likely to continue to grow in 2019 and it will affect the price of Gold positively.

5) Gold and Silver becoming Legal Tender in the United States

11 States have passed or currently have pending legislation to make Gold and Silver legal tender. These states clearly are concerned about the future value of the U.S. Dollar.

6) Mine production of Gold has dropped for 3 consecutive years

Basic supply/demand fundamentals. The World Gold Council reported Gold mine production fell again in 2018 as the cost to produce Gold increases.

7) China is trading U.S. equities and Dollars for Gold

China continues to build a sizeable stockpile of Gold. It is believed that China will soon back the Yuan with Gold. The IMF has just added the Chinese currency to its highly respected basket of reserve currencies. This will be a great help to China in its effort to replace the U.S. Dollar as the world’s primary reserve currency. The IMF requires countries to hold U.S. Dollars as reserves. If the Yuan replaces the Dollar, it will be disastrous for Americans and the price of Gold (in Dollars) would soar.

8) Basel III will encourage the World Banks to hold Gold

In the Basel III agreement, which is being implemented by the world banking system between 2017 and 2020, Gold has been upgraded this year from a Tier III asset to a Tier I asset. This will encourage many large banks to increase their Gold holdings and make loans on Gold.

9) Geopolitical problems continue to help Gold demand

Whether it be a trade war with China or problems with Russia, Iran, Syria or North Korea, it’s bullish for Gold. Investors are motivated to buy Gold (the ultimate safe haven investment) when geopolitical problems reach the news.

10) Government Gold repatriation continues to grow

Stockpiles of Gold in U.S. depositories continue to drop, as one country after another continues to repatriate their Gold. This could soon cause a Gold short squeeze.

Today: After last week’s rally, Gold is establishing a new trading range above the current support level $1,300 per ounce. This morning a stronger U.S. Dollar helped Gold reach a low of $1,308 before finding fresh buying.

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SILVER

Silver ended January 2019 at $16.02 per ounce, the highest price it traded at this year. Silver was up $0.59 (3.8%) for the month. The $16 level is a major resistance level for Silver, and I believe January 31st was the first attempt to break that resistance level. As long as Gold stays above $1,300 per ounce, I expect to see Silver trade in the $15.75 to $16 area. Right now, consolidation, while building a firm base is needed for Silver’s next attempt to break the $16 level. Currently, the Silver-to-Gold ratio is at 82.89-to-1.

Today: Silver sold-off with Gold, reaching a low of $15.64 before the bargain buyers came running in. Demand for physical Silver investment products is picking up in Asia, Middle East, Europe and the U.S. See the U.S. Mint article above on January Silver eagle sales.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% of investment capital

Diversification:  Gold 60%, Silver 30%, 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.

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