JP Morgan now Bullish on Gold & Silver – Major Silver Dollar Auction

Current Rare Coin Listings Updated

Current listings for Morgan Dollars
https://www.mintstategold.com/silver/us-mint/morgan-silver-dollar.html

Current listings for Peace Dollars
https://www.mintstategold.com/silver/us-mint/peace-silver-dollar.html

Current listings for $20 Gold Saints
https://www.mintstategold.com/gold/us-mint-1/saint-gaudens.html

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

This Is Not ’A New Dollar Bull Market’

Gold Should be Viewed as Money Not as an Investment Instrument

Russia Continuing to Increase Gold Reserves - Adds 18.66 tonnes in April

Turkey Repatriates all Gold from the US in Attempt to Ditch the Dollar

This Week’s Headlines:

Gold
JP Morgan Now Bullish on Gold and Silver
Silver
Sotheby’s Rare Coin Auction
Recommended investment commitment and diversification

GOLD

Last Monday through Wednesday, Gold traded in a $10 High/Low range, between $1,286 and $1,296 per ounce. Then early Thursday, the President cancelled the North Korean summit and the stock market dropped 150 points but Gold/Silver rallied. Gold quickly moved to $1,306, above the key $1,300 per ounce resistance level, and closed at $1,304 on the highest trading volume of the week. Gold ended the week at $1,303.30, up $12.40 for the week.

Over the long holiday weekend, the President announced that the North Korean summit was back on, scheduled for June 12 in Singapore. On Sunday and Monday, while U.S. Markets were closed, in European and Asian precious metal trading Gold sold off about $5. Today could be a key short-term day if Gold can stay in the important $1,300 area.

The Risk/Reward ratio on Gold has never looked better. In the short-term, Gold could possibly hit the $1,280 per ounce support level, but Gold’s short-term resistance level is at $1,350 per ounce. I still look for Gold to break above $1,400 this year and JP Morgan believes it will reach $1,700 by next year (see below).

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JP Morgan Now Bullish on Gold and Silver

JP Morgan (one of the world’s largest financial institutions) disclosed back in January that it owned over 125 million ounces of Silver (now estimated to be over 140 million ounces). JP Morgan is now bullish on Gold. In a statement last Friday, JP Morgan said they see the U.S. Dollar getting weaker and the price of Gold surpassing $1,700 in 2019. JP Morgan feels that Gold has historically rallied after the business cycle starts to turn south.

Back in January JP Morgan’s CEO, Jamie Dimon, said that the reason JP Morgan was stockpiling Silver is because he anticipates a crisis which could be geopolitical or financial turmoil. Now, JP Morgan feels that "the Dollar will start moderating and a weakening dollar will support metal prices". JP Morgan, with 140 million ounces of Silver, still has not disclosed how much Gold it is stockpiling.

Today: A political crisis in Italy is causing heavy selling on European equity markets and has rolled into the U.S. Market, driving the Dow Jones down over 400 points. Amazingly, Gold has rallied today, moving over the $1,300 resistance level, in the face of a strong U.S. Dollar Index, nearing 95 (highest since 2011).

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SILVER

Silver closed Friday at $16.49, up $0.09 per ounce for the week but down $0.52 from the beginning of 2018. Silver reached $16.68 on Friday before selling off with Gold in late trading. This week, I expect to see Silver underperform Gold, and the Silver/Gold ratio to move higher.

The Silver/Gold ratio moved higher last week to 78.79-to-1 on Friday.

Today: Silver isn’t moving higher with Gold today. Silver tested its recent low of $16.28 before finding buying.

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Sotheby’s Rare Coin Auction

Last Monday, I attended a Sotheby’s rare coin auction in New York. The coins that Sotheby’s auctioned were from the estate of Ralph Stone from Sebastopol, California. Mr. Stone built this rare coin collection from 1986 to 1997 and purchased mostly PCGS certified coins. In his collection was a 110-piece set of high grade Morgan Silver Dollars. Many of these Morgan Dollars were finest known, with an 1892-S in PCGS MS67 grade, an 1893-O in PCGS MS65 DMPL and a 1895-O in PCGS MS65.

I was able to purchase a number of these Morgan Dollars, three of which were true PCGS/CAC rarities. An 1884-S in MS67 for $735,000 (finest I have ever seen), the 1893-S in MS65 for $735,000, and the 1897-O in MS66 for $263,000. Because of the quality of these Morgan Dollars they sold for record prices. The activity level for this auction definitely shows that the Morgan Dollar market is hot.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% 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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