Today, Chinese buying drives Gold and Silver prices higher

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This Week’s Headlines:

Gold
Silver
Last week’s Long Beach Coin Expo
Recommended investment commitment and diversification

GOLD

Last week was a very good opportunity for Gold buyers to come in, with Gold dropping $25 per ounce based on four major factors: 1) The Chinese were out of the Gold market all week due to the celebration of the Chinese New Year, 2) U.S. interest rates continued to move higher, 3) the U.S. Dollar moved higher against a basket of currencies, and 4) the world’s equity markets, including the U.S. Dow Jones Index, moved higher.

Last week, Gold traded above and below an important $1,330 support level, in a tight high/low range. Gold reached a low of $1,322 on Thursday before closing above $1,330 per ounce. Gold closed last Friday at $1,328.50 per ounce, down $24.70 for the week.

Now with the Chinese Gold buyers loving bargains, Gold at the current level is a definite bargain. Therefore, I expect to see Gold move back into the $1,330 to $1,350 per ounce trading range very quickly this week.

Today: Early this morning, initial buying in China took the Gold price to a high of $1,341 per ounce. As European and U.S. markets opened, we saw a small sell-off, taking the price down to the $1,331 support level.

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SILVER

Last week the Silver price reacted with the Gold decline, dropping $0.23 per ounce to close at $16.48 on Friday. Silver hasn’t been above the important $17 per ounce resistance level since the beginning of the month. Professional commodity traders have been profiting from shorting Silver when it moves above $16.90 and covering the short sales when Silver drops below $16.50, a $2,000 profit for each 5,000-ounce Comex contract. If I am correct about Gold’s rally this week, I expect to see Silver attempt a move towards $17 again very soon. The question is, can Silver break out above that resistance level and overcome the short-selling?

Today: Silver rallied with Gold this morning in Asian markets, reaching a high of $16.82 per ounce. When European and U.S. Markets opened it sold off to the $16.60 area.

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Last week’s Long Beach Coin Expo

Last week, I attended the February 2018 Coin Expo convention in Long Beach, California. This was a major rare coin convention, and as I expected, trading activity on the bourse trading floor and at the Heritage auction was very aggressive. This could be a very profitable year for collectors/investors of certified U.S. Gold and Silver rarities. The heavy demand should definitely see much higher prices.

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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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