The 2018 Gold and Silver rally continues for 10 straight days

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This Week’s Headlines:

Gold
Rare Coin report
Silver
Recommended investment commitment and diversification

GOLD

After closing 2017 at $1,306.30 per ounce, up $156 (13.5%) for the year, Gold continued the rally into 2018. Last week, the first week of the new year, trading volume increased and the Gold price stayed above the important $1,300 per ounce long-term support level. Gold closed last Friday at $1,320.30 up $14 per ounce after testing support on Thursday.

I expect to see Gold consolidate its recent gains and build a strong base in the $1,300 to $1,340 trading range over the next few weeks. I also expect to see Gold test the $1,300 support level at least twice before breaking out of this trading range. The next key resistance level for Gold is $1,355 per ounce, the 2017 high, and a level that has shown substantial resistance over the past two years.

After Gold reached an all-time high of $1,920.80 per ounce on Sept 6, 2011, it sold off dramatically, reaching a low of $1,040 on Dec. 3, 2015, an incredible 46% decline over 4 years. Gold started its rally back in 2016, ending that year at $1,150, up 8.46%, and up another 13.5% by year-end 2017, closing at $1,306.30 per ounce. During 2016-17, Gold has traded between $1,050 and $1,377 per ounce. I believe Gold has built its base and will definitely move above $1,400 per ounce this year, on its way to reach a new high by 2020.

Today: After being up for the 10th straight trading session in a row, Gold is holding in a tight $7 high/low range. The high today was $1,322 and the low was $1,315 per ounce, well above the $1,300 support level. I expect to see some light profit taking this week, after the recent $80 per ounce rally.

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Rare Coin report

Last week, I attended the January 2018 FUN Convention in Tampa, Florida. This was the first major rare coin convention of 2018 and trading activity on the bourse floor and at the auction was very active. Hundreds of major rare coin dealers and thousands of collectors and investors attended the convention. U.S. Rarities were at the center of record prices at the auction and on the trading floor. Many dealers focused their attention on buying Gold and Silver certified rarities with populations under 50.

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SILVER

Last Friday, Silver closed at $17.21, up $0.15 per ounce in the first week of 2018. Silver tested the important $17 per ounce resistance level last Thursday when it reached a low of $17.00 before quickly rallying back to $17.20. Silver staying above the $17 per ounce resistance level this week would be very bullish for the Silver price in 2018. Moving above $17 per ounce is very positive considering the recent December 12 one-year low of $15.58 per ounce.

The Gold/Silver ratio has increased to 76.50-to-1.

Today: Silver tested its $17 support level this morning reaching a low of $17.02 per ounce before bargain buyers appeared. Silver doesn’t have the price support that Gold has recently shown, therefore I wouldn’t be surprised to see Silver trade below $17 for a brief period of time.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 30% of investment capital

Diversification:  Gold 55%, Silver 35%, 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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