Gold’s six weeks bullish Rally take a breather today<br />Weekly Market Report 4/24/17

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This Week’s Headlines:

Gold
Silver
Rare Coin report
Status of the rare 1933 $20 Gold Saint Gaudens
Recommended investment commitment and diversification

GOLD

Gold has now increased six weeks in a row. On March 10, Gold was at $1,201.00. Last Friday, April 21, Gold closed at $1,289.10 per ounce; an $88 increase over that six week period. Gold is also up $139 (12%) since the beginning of 2017, a new record high for the year. Gold’s recent six-week rally is very impressive, with Gold moving sharply higher, then backing off and holding above support levels.

The French election happened over the weekend. Emmanuel Macron and Marine Le Pen won, and are now in a run-off that will take place on May 7. The initial reaction of the markets showed a 200-point increase in the Dow Jones, a Euro rally versus the U.S. Dollar, and a $16 slide in the price of Gold. Le Pen, leader of the National Front, has campaigned on a promise to ditch the Euro and pull France out of the European Union. If France did drop the Euro and replaced it with the French Franc, that would be very bullish for Gold. With Le Pen coming in second and being a clear underdog for the final election, it isn’t surprising to see Gold lower and the Euro higher.

Emmanuel Macron, a 39-year-old former investment banker who has never before stood for elected office, now becomes the favorite to become France’s next President. Mr. Macron is an independent centrist who formed his own movement only a year ago. Mr. Macron’s lightning ascent has belied doubts about his ability to win over the French heartlands. He casts himself as an outsider who will shake up France’s traditionally bipartisan politics, but uphold democratic and civilized values against the ’extremism’ and ’xenophobia’ of Ms. Le Pen.

Today: This morning, on the news that Marine Le Pen did not finish 1st in the French election runoff, Gold sold off, hitting a low of $1,266. At that price, bargain buyers appeared and the price quickly moved back to $1,272 per ounce.

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SILVER

Last week was very disappointing for Silver investors. Both Gold and Silver reached a new 2017 high on Monday, and then Silver sold off the balance of the week. Silver closed last Friday at $17.86, down $0.65 for the week. Silver lacked the demand and trading volume it needed last week, and when it broke below the key $18 per ounce resistance level, traders shorted the future contracts.

The Gold/Silver ratio has increased to 72.19-to-1.

Today: Silver couldn’t rally above the important $18 support/resistance level before the French election results were posted. After the election results were announced, Silver followed Gold lower, reaching $17.71 before serious buying appeared.

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Rare Coin report

This week, I will be attending the April 2017 Central States Numismatic Society convention in Schaumburg, IL. This is one of the major rare coin conventions of 2017, and I expect to see a very active trading bourse floor. With hundreds of the major rare coin dealers and thousands of collectors and investors attending, I’m hoping to pick up many of the undervalued $20 Gold Saints and Morgan Silver Dollars, to build up our inventory and fill clients’ want lists. Please update your want list if you haven’t done so recently.

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Status of the rare 1933 $20 Gold Saint Gaudens

A number of my clients, who collect U.S. $20 Gold Saint Gaudens, have asked me the status of the ten 1933 $20 Gold Saints the federal government took possession of over 12 years ago.

Israel Switt, a Philadelphia jeweler, acquired the 10 coins in the 1930s, and his daughter Joan Langbord found them in his safe deposit box. The coins were sent to the U.S. Mint in 2004 for authentication and the Mint would not return them.

In 2005, Mrs. Langbord’s lawyer, Berry Berke, sued the government, and that law suit worked its way up to the U.S. Supreme Court. On April 17, 2017, the Supreme Court refused to hear the case. Therefore, the Third Circuit Court ruling of 9-3 in favor of the U.S. Government will stand.

Berke is the same lawyer who successfully legalized one 1933 Gold $20 Saint that had been seized in 1996 from British coin dealer Stephen Fenton. It was sold in 2002 in a New York City auction for $7.59 million. The proceeds were split between Fenton and the government.

Now that the government has won, the worst thing that could happen is that these coins are destroyed, or locked away, forever unseen, in Fort Knox, Ky.

(The information for this article was provided by the Numismatic News Staff)

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 30% of investment capital

Diversification:  Gold 50%, Silver 40%, 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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