Gold & Silver Breaking Out – October Coinstats Available
| Stuppler & Company is proud to provide our clients this Weekly Market Report (WMR). The report gives you my overview of the prior week’s precious metal and rare coin market activity and news. In each WMR I share the current status of Gold and Silver along with their support and resistance levels. |
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This Week's Headlines: |
Last week we saw Gold move from a low of $1,871 to a high of $1,930 per ounce on average trading volume. Gold closed Friday at $1,920 per ounce, up $19 for the week and up $406 since the beginning of the year. The main focus of Gold traders was the possibility of COVID-19 stimulus legislation and the U.S. Dollar Index trading.
The on-again/off-again negotiations on any Congressional stimulus legislation negatively impacted the precious metal markets earlier in the week. Later in the week, it appeared that negotiations were back on track and the U.S. Dollar Index started to drop. The U.S. Dollar Index ended the week down almost a full percent, at 93.06, after being over 94 earlier in the week. This decline in the U.S. dollar helped Gold rally $31 on Friday; substantially over the key $1,900 resistance level. This week should confirm if we are back on track to the $2,000 level.
Right now, there’s lots of election speculation concerning financial and precious metal markets direction. Traders believe that if Biden becomes President, there will be big democratic government financial aid packages and a circular rotation in the stock market.
Today: Gold dropped slightly this morning when we saw a rally in the Dollar Index, and still no news from Congress on any multitrillion-dollar COVID-19 aid stimulus legislation. For most of today’s trading, the Gold price ranged from $1,920 to $1,929 per ounce.
As we approach the elections, with a possibility of a President Biden and a Democratically controlled Congress, it’s clear that we’ll have massive stimulus legislation to start back up the economy. I believe that will result in new all-time highs for both Gold and Silver. Many of the most respected large financial institutions believe this stimulus will be trillions, creating sizeable new federal debt. I think there will be some federal legislators looking for new taxes to pay for this new debt. With the value of Gold and Silver moving higher in the news media, I believe that precious metals will be one of many areas they will look at for new taxes.
Five states have recently made Gold and Silver coins legal tender through state legislation, and eight other states have proposed similar legislation. Federal reportability laws haven’t been changed for over 40 years...when Gold was trading in the $200 per ounce level. So, the thought of a major change in reporting profits on sales of precious metals keeps me up at night. As Chairman of the Federal Gold and Silver Political Action Committee, monitoring any new Federal legislation that could influence the precious metal markets is my responsibility. I work with a lobbyist in Washington, D.C. to watch for any proposed Senate or House bills that mention precious metals.
If such reporting legislation for precious metals becomes law, it will focus on bullion coins and bars. The popular bullion coins from the U.S., Canadian, and many of the major mints will be included, as well as bars. Historically, numismatic coins are considered collectibles and are exempt from reportability. This is why I recommend that my clients invest in the popular pre-1933 U.S. and European Gold coins and uncirculated American Silver Dollars dated before 1935. These investment items are actively traded and have excellent bid/ask spreads.
Silver closed last Friday at $25.06 per ounce, up $1.09 for the week, and up an impressive $7.29 (40.82%) for the year. Silver closed on the high of the week and was above the key $24 support level. After an ugly sell-off, reaching $21.75 on September 24, Silver has been up the past two weeks. Continued strength in the Gold price will help Silver maintain $25 as a support level. The Silver-to-Gold ratio moved lower last week, closing last Friday at 76.72-to-1.
Today: Silver reached a high of $25.63 per ounce during Asian trading before seeing short-term profit-taking. As Gold sold off earlier today, Silver moved towards the important $25 per ounce support level. To see Silver close above $25 today will be short-term bullish.
I’m proud to offer the October 2020 version of CoinStats, which has been updated with plus grades and other new features. CoinStats for October 2020 offers six different series: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Gold Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.
The CoinStats report provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the Best Value page. These are not the modern issue bullion coins or low-grade circulated coins. These are PCGS certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity.
One of the changes in the 2020 version of CoinStats is all the populations and prices are from PCGS; NGC populations have been omitted. The reason for this change is over 80% of my clients only purchase PCGS coins, so I wanted to focus on PCGS data only. A new addition is information in increases in all PCGS grade populations from issue to issue, plus increases in popular PCGS Registries at the bottom of the Best Value page.
| Thank you Barry + David StupplerMintStateGold.com by Stuppler and Company[email protected] 1-888-454-0444 |
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Barry Stuppler |
David Stuppler |
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All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of 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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