Gold & Silver at bargain prices – Not going to last long?

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This Week’s Headlines:

Gold
Silver
Informative Story for Precious Metal Investors
U.S. Mint releasing 2017 Proof 1oz Gold Buffalo
Recommended Investment Commitment and Diversification

GOLD

Last week wasn’t pretty for Gold investors. During those five trading days, Gold declined $41.40 per ounce, closing last Friday at $1,226.90 per ounce. A number of factors caused the drop in the Gold price: 1) The French election results, and last Thursday’s polls, showed Macron leading Marine Le Pen 60%-to-35% 2) The 10% drop in the price of crude oil 3) The Federal Reserve giving strong indications of an interest rate increase in June 4) Professional traders and chart analysts selling Gold after it broke below the key $1,250 support level.

This slide in the Gold price gives our clients an excellent opportunity to add to their holdings at an attractive price. I think we will see Gold break above the $1,300 per ounce level very soon, especially if something happens with North Korea. The Gold price may test its next support level; however, I continue to believe that Gold will move back on its bullish track very soon.

Today: The Gold market is showing excellent price support above $1,225 per ounce, after last week’s decline. Neither Le Pen’s loss in the French Election, the stronger US Dollar, nor the higher 10-year Treasury yields seem to have had any negative impact on the price of Gold this morning.

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SILVER

Last week, Silver followed Gold lower, reaching a low of $16.27 per ounce at Friday’s close. Silver sold off a whopping $0.99 last week, an unbelievable 5.72% correction in just a week. At this price, we should see heavy bargain buying in Asian, European, and Middle-Eastern markets. From a risk/reward vantage point, Silver offers an extraordinary opportunity for both long and short term investors.

The Gold/Silver ratio has increased to an astonishing 75.39-to-1.

Today: Silver has shown good support above $16.23 per ounce this morning. A quick rally back above $16.50 per ounce would be helpful for trader sentiment.

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Informative Story for Precious Metal Investors

Last week, a long-time client came in to sell me 200 1oz Gold Eagles that he had purchased in March of 2013. He was taking almost a $68,000 loss on them and I asked him why he was selling. He explained that on the same day he had purchased the Gold in 2013, he had also purchased 1,000 shares of Apple Stock at $66 a share. Last Thursday, the day he came into my office, he had just sold the Apple shares for $146,000, making a nice profit of around $80,000 in capital gains. So, since he had originally purchased the 200 Gold Eagles for $322,000, and was now selling them to me at $254,000, he also has a $68,000 capital loss. Therefore, he will pay capital gains tax on only $12,000 ($80,000 gain - $68,000 loss = $12,000 net gain). Plus, he’ll have $400,000 ($146,000 + $254,000) to buy more Gold at the current low price in 30 days.

This transaction got me thinking about the current timing and best way to maximize a precious metal tax loss sale. With the recent strength of the U.S. Dollar, the $20 Gold Liberty and Saint Gaudens premiums have dropped to less than 5%. This is an all-time low premium for a Brilliant Uncirculated Gold $20 coin minted between 1890 and 1928. So, an extraordinary tax trade would be to sell any 1 ounce Gold Eagles, Buffalos, Maple Leafs or Krugerrands you may have purchased between 2011 and 2013. It’s an outstanding trade, plus you receive a capital loss and can use it to offset any capital gains profits in stocks, bonds, real estate or other investment products.

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U.S. Mint releasing 2017 Proof 1oz Gold Buffalo

On Thursday, May 11, the U.S. Mint will offer for sale the 2017 1oz Proof Gold Buffalo. We will be purchasing hundreds of these coins and will immediately submit them to PCGS and NGC, hoping to get a fair percentage of First Strike and Early Release Proof-70 Ultra Cameo coins. We should learn the U.S. Mint’s issue price later this week.

If you wish to purchase a 2017 1oz Proof Gold Buffalo, certified as perfect Proof-70 Ultra Cameo from PCGS or NGC, please contact us. We will put you on our preferred client list and give you our Lowest Price guarantee.

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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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