Gold/Silver rallied back last week–Calif Coin Show this week

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

Chinese New Year, Excellent Time to Buy Gold

Silver is the Metal to Watch as it Plays Catch-Up with Gold

Gold’s Recent Rise is Exacerbated by Dollar Weakness

Gold as a Strategic Asset

China’s Love Affair with Gold Heating up on Property Riches

This Week’s Headlines:

Gold
Silver
Long Beach Coin Expo starts February 22
Recommended investment commitment and diversification

GOLD

Gold ended its short-term bearish decline last week, rallying $40 per ounce for the week. Gold closed last Friday at $1,353.20 per ounce, above the key $1,350 support level. Last week’s Gold rally was fueled by concerns that January CPI numbers are showing inflation on the horizon. What added more meaning to last week’s Gold rally, was that the Dow Jones was up over 1,000 pts, and interest rates and the U.S. Dollar also moved higher. Gold is now up $50 per ounce (3.82%) since the beginning of 2018 and definitely on a bullish track for $1,450 before year-end.

It isn’t just concerns about inflation that are causing Central Banks, hedge fund, and mutual fund managers to view the lower Gold price as an opportunity. Increasing government debt is fundamentally an excellent reason for owning Gold. Whether it be European countries, Japan, or the U.S. allowing massive government debt, it causes these countries to keep the printing presses going 24/7 to cover trade and domestic deficits. History has shown us that massive government debt devalues paper money and increases the value of Gold.

U.S. National Debt is over $20 trillion and growing based on the new 2018 Republican budget. Republicans have battled for a balanced budget for years and promised if they were in control of Congress, the budget would be balanced. Right now, the 2018 U.S. budget shows a $1 trillion deficit, and if the $1.5 trillion infrastructure legislation passes, it adds to the next few years’ deficit.

What’s next for the Gold price this week? I would expect to see Gold move back into the $1,330 to $1,350 trading range in the early part of this week.

Today: A strong U.S. Dollar caused Gold to decline in Asian and European markets this morning, reaching a low of $1,330 per ounce, before finding support.

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SILVER

Last week’s Silver price showed a slightly higher percentage increase than Gold, but still couldn’t break above the key $17 level. Silver tested the $17 resistance level last Wednesday, Thursday, and Friday and reached a high of $16.95 per ounce, but short-selling wouldn’t let it happen. Silver closed the week at $16.70, up $0.57 per ounce for the week, and still at an 81-to-1 Silver/Gold ratio.

If Gold stays in the $1,330 to $1,350 trading range, Silver is going to have a difficult time this week staying above $16.50 per ounce. Plus, Silver needs to overcome short-selling and move back above $17 per ounce to regain the bullish short-term sentiment.

Today: Silver followed Gold lower this morning, reaching a low of $16.44 per ounce. At that price, bargain buyers appeared, quickly rallying the price over $16.50.

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Long Beach Coin Expo starts February 22

This week, I will be attending the February 2018 Coin Expo convention in Long Beach, California. If you are in the Long Beach area, please stop by and visit us at Table 826 on Thursday, 2/22. This is a major rare coin convention, and I expect to see active trading on the bourse trading floor, with hundreds of the major rare coin dealers and thousands of collectors and investors. I’m hoping to pick up many of the undervalued U.S. Gold and Silver rarities, to build up our inventory and fill clients’ want lists. Please, update your want list if you haven’t recently.

More Updates Coming Soon

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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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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 through 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.

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